The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-12
THE MONEY PROBLEM.

upon the solution OF the currency ques.
ton in and ont OF congress-, and the
laws suggested and urged, As shakes-
pesrs would say. are las plenty as
black berries"
| There are many who refrain from Civ
ing thought to the subject because they
are led to believe that there 10 some
thing about il too sbstruse for any but
those who have made it study for
veare, and that even then only the most
snbtle minds can understand it. 1t 10
true the money question seems to have
become more and more mystifsd az civ
| ilzstion has progressed. In the early
ance that now attaches to it. The
banker and monev lender would have
the belief prevail that it is OF more con-
seous ,cs than brain and muscle or food
and drink, while in reality IL Is simply
an implement OF trade. and as q pro-
Queer of wealth it ia utterly barren.
The first point to be understood Is
what are tbs functions OF mo rev? 1t is
simply q medium of exchange, baing
used to paw for property and for labor.
tits true but only that the borrower
MAY use it for the purposes named.
Another fact that should not bs lost to
tina MUD 10 that nature nevH. crsatsd
any NJ ,ney nor design ated any N ,teral
from winch it shall be created. Monsy
is solely the creation of law or usage,
and man in all xxss aud Countries has
employed that m aterial which 10 his
Judgment 10 best adapted To his need-.
Money has grown ia importance with
is le's barter in commerce, and values
are more generally brought to Q money
measure.
| As monav has become the ultimate
needed bv a psople 10 tho next point to
he settled. The voiums ia regulated in
most countries on the basis OF populs-
tim. Inc bstter way Ia to regulate it
upon the volume OF trade Msxico ia
sn pposed to have about one-six,h Of our
pounla'ion, while her fore On commerce
i9 ABOUT ons-ten.h. and her domestic
CON Marco ia in less proportion.
In Great Britain tbs supnlv OF money
per capita Ia 1923 in the U ,tsi States
j. is said ro he a Ii tie N ,rs than S2i. in
Germany s35, and in Franc, s55.
A sum per capita that is antfic ent for
Great Britain. Germany or Francs would
not ba all tnet is needed in this country.
bscsnsa onr ps ,p's are spread over, an
area 10 tins, greater than that of ell
those Countries combined, and cow.
qu-ntlv money cannot ps,a as rapidly
! from one to another. Our populs-
tion is not more than two.third,
the aggregate OF that OF those
three nations. In the area and p,pala
ton of Great Britain. Germany and
France their pos,ss,ions in othsr than
the E ropsan c,ntinsnt are not inclnd =
ed. 1t is doubtful il the domestic CON-
marce OF the three is equal to that OF
thi, country. though they excel in pop
ulation bv nearly or quite 81 per cent
for the reason that Americans consu me
more than any people per capita. The
masses Iva better than the masses over
there. The most prospsrous nation in
Europe 10 France. and she has the larg-
ost par capita volume OF clroulatin
medium.
What is q sufficient volume OF money
TO supply ths rational wants OF the
country? II $24 per capita vera in act-
ual circulation there would be an easier
condition than now exists. That su N
is only our nominal volume. The tota
OF money in the country lie less than
81. zoe, 600 600. which includes gold
silver and ali classes OF paper.
Statistics not OF very late date
showed that 1894 0OO,OO OF the money
were held in reserve by national and
! savings banks. kept out OF circulation
| by law. How much lie held in reserve
in state and private banks and which
| lies in the public treasures cannot be
accurately stated, but the sums must be
considerable. The $346. 900. 900 of treas.
ury notes are the rsaiduum Of all the
issues for third of q century after de-
Quoting what the government has re-.
turned and cancelled. That sum in
cludes all the notes lost and destroy ed
since 1852. How much has thus forever
disappeared no one can toll. That the
amount 10 large Is apparent to every
intelligent person. for it must be under
stood that the period named covers
three years Of the war. The same 10
true. though to . less extent. OF tho
national bank notes, the issue Of which
began third Of . century ago. In fact
then. the money actually in circulation
10 not more than So or SO per capita.
The figures lately given out by the
comptroller Of the currency a. to the
amount OF money on deposit in the
banks are misleading. The figures
stated we're above $4,000. 600. 900, = sum
! nearly two and half times greater than
the whole volume OF money as shown
by the record. The deposits in banks
not only represent tbs actual cash on
hand, but notes and securities OF bor-
rowers, for when men borrow of banks
they have the sums there to be checked
against. Our domestic commerce az.
gregates $4,000. 900 and 10 per cent Of
shat sum would not seem too much to
conduct businsss easily. Oar CONNER