The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-02-27
cur to &, oOo, coo people by the disap-
pearance Of that which has long since
disapneared."
THE NEED FOR ACTUAL MONEY.

monometallists to persuade the people
that large supply of mones Is un-
necessary. To this end the New York
Evening Post recently endeavored to
comfort the agricultural population
with the assertion that cit must be
remembered that the farmer needs
very little cash." Thus, also, the Bos-
ton Herald, repeating an oft-repeated
statement, observes that, "the bank
check is the currency Of the country
for business operations" and that
"the currency that passes from hand
to hand is very small percentage of
such operations. A sufficient re-
Spouse to this proposition might be
given simply by referring to the condi-
tions now existing in Newfoundland.
Plenty OF bank money may be had in
that unfortunate colony, and there is
no scarcity of property representing
actual wealth; but, because there is
no real money, men starve in the pres
ence Of great stores of food, and bust
ness is paralyzed for want of instru-
ments with which to conduct the work
| of exchanging commodities.
II bank checks should be wholly SUBJ
stituted for currency the men who do
not keep bank accounts could make no
purchases. 1t is likely that not more
than 10 per cent of the population
have the power to check money from
a bank, and, of those who have this
power, every man is compelled to draw
out money for his daily small expend-
itures. The clearing house business
assuredly does not represent the total
commercial movement OF the nation,
for in Is states there are no clearing
houses. and yet. in every hamlet in
each of those states, traffic goes on
during all the hours Of daylight with
the help of cash.
Practically all wages in this country
are paid, not in checks, but in metallic
or paper money. The total supply of
such money is about 81, 100000, 600 (gold
$500, 100000, now the only money of
final payment), and much of this is
locked up in banks, where it 4emains
out of active use. Now, the wages
paid annually in a single industry, that
of manufacture, amount to So, III ,0O0,-
600, or about 40 per cent more than
the whole amount of money. The
wages paid in agriculture are nearly
as large Add to these the wages in
mercantile business, the wages of day
laborers, of the great host of railroad
opera tiveS, and those paid in other de-
pear that the availa BILE money will be
we'll employed if it shall do nothing
more than to perform this single func-
tion. Railroad fares always call for
cash, and almost One-fourth of all the
money in the country. say $4O0, 100000
is required for the purpose. There are
81, 600, 100000 deposits in American
savings banks, and $60O.000,OOO more
in building and loan associations.
These two classes of institutions owe
more money than the whole nation
possesses.
But nearly, if not quite, the whole
Of the retail business of the country is
done with money and not with checks.
This is true of the transactions of men
with, and men without. bank &C
counts. AS river is the sum total OF
the rivuletS and other tributaries that
empty into it's channels, so the whole
sale business is merely the sum total
of the retail transactions, which are
not at all represented in the clearing
houses. Without the smaller traffic,
the latter could have no existence:
and, obviously, anything which oper.
ates to diminish the number of small
exchanges must have the effect to re-
duce the volume of the larger ex
changes. The retail business is in
variably done with small money. 1t
cannot be done with money of large
denominations. The only small money
we have is paper notes and silver. The
quantity Of silver permitted to the
people is rigidly restricted and of the
paper money now in existence by fa1
the greater quantity consists of notes
of large denominations. OF this, only
So. 100000 are one and two dollar
notes. There are more five-dollal
notes than one-dOllar notes and twice
as many tens and twos More thar
one-fourth of the notes in value are O.
denominations ranging from $50 tt
10000.
Thus it is clear first, that very
great volume of small money is re
quired for the use of the people: sec
ond, that no such quantity Of small
money is in existence; and, third, thai
just such sluggishness as now appears
in wholesale trade must present itsel
when the people are unable to procure
money enough with which to make
purchases for the supply of thei
smaller wants. Not only do these con
ditions create Embarrassment 70
traders, but they inflict upon the ma
, tion loss and injury that are vas
though incalculable. Money is. anon,
.. other things, labor-saver. Here i
an idle man who wants work; there i
a man who desires to have work done
If the man who would hire the othe
has money, the labor-power of TIN
workman can be exercised and the re-
suits preserved. If no money be avail
able, the chance is lost, the labor-pow
: er is wasted and society and the indi
viduals directly interested are al
poorer. Multiply such case by TIN
possibilities in population of 10000
600 and the total loss will reach ar
palIing dimensions.
Nothing is more susceptible of posi-
tive demonstration than that larg
supply of sound money is an impcra
tive requirement of prosperity. Thos
who teach a different doctri ne, or VIII
, inspire such teaching, are men VIII
J deal in money and bank credit, and t.
, whose interest it is to make currenc
scarce so that the demand for banl
credit may increase.