The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-08-14

lou OF silver bullion ana wanted IL coined
| in those years into silver coin. Now 2
or 3 per cent premium for silver would be
| no inducement to that man to ship that
| bullion to London-that is where this
| premium was; it wasn't here nor in New
York. The freight and insurance and
| expressage would more than consume that
| or 3 per cent, not to speak of being out
| Of the use of his money in the meantime
| Hence he would take it to the United
| States mint and have it coined into money
| that he could use Immediately. Applause)
| HARVEY DEALS IN BIG FIGURES.
1T is in effect admitted by the other
| side that it is not, but they say bank
credit with the check system supplies the
balance. The Coinage Laws and APP
| pendix' we have been using, pages 215
and 240-1 now hand the book to Mr.
Horr-show the total deposits of the peo-
| pie in the United States at certain day
| in 1893 in banks of all kinds were $4,84S,-
| S62, $50. This is in the face of the fact that
there is only $1,000, 100000 of money
| of all kinds in circulation; and it. as we
know, is not all deposited in the banks
This leaves at least $4,000, 900, 900 more
money subject to check than there is of
our whole stock Of money. The surplus
| is what is known as bank credit and
check system. 1t also indicates what
| is normal amount of money for the
| transaction of the business of the coun-
| try. Give it your impartial judgment
and you cannot escape the conclusion
| that the $4,000 100000 approximates the
| quantity necessary You cannot say that
| it is in existence, for it is not. You can
not say that it is the capital of the BUSH
| ness men, on which they are transacting
the business of the country. You can
only say that experience teaches us that
| so much is necessary. You cannot say
| that 1t exists. 1t represents the amount
of cash capital necessary for the business
Of the country, but it is not cash capital
1t is one-third money and two-thirds
bank credit. There is one-third enough
| money to furnish capital for and facili-
| tate the business of the country, and the
banks, with their credit system, furnish
| the other two-thirds. On the one-third
we pay no interest. 1t is not interest
bearing money; it is the money of the
country. We pay interest on the other
| two-thirds. To say there is 81, 800, OOO,-
600 deposited in the banks is to say at
the same time the banks are drawing in
| terest on $4,000, 000,0 of it. It works
this way:
"a deposits $4,000 in bank. B bor-
rows the $4,000 from the bank, but does
not take the money-it is placed to his
| credit. Now the $4,000 has swollen to
100000 on deposit. The $4,000 is still
in the bank. c comes in and borrows it
and places it to his credit. Now there is
$4,000 on deposit Interest is being
paid on $4,000 of it. A has $40 900 to
his credit, the capital in his business, on
which he is paying no interest. B and
G have each $4,000 to their credit as
capital in their business, and they are
both paying interest.
"The country needs $4,80O,0 OO, 900 to
meet the normal demand for money. It
needs it just as it needs normal supply
of wheat or anything else. If you want
to confirm this take the loans given on
the same page last referred to- showing
that the loans of all banks at that date
were safes, 1873 ,495. With only 81 6OO,-
900 in the country they are loaning three
| times that sum. This money is furnish
ed how? The banks furnish it with the
credit system, by which one dollar is
made to circulate in place of three that
| are needed, and the banks collect inter-
est on two Of the dollars. For each dol
lar in existence we are paying the banks
interest on two dollars. This is the way
the banks work the actual volume of
money in existence up to the normal
| volume. With $1,000, 100000 in exist
| ence the people are using 1t and paying
| interest on So 100000 additional. This
| interest varies from to IL per cent At
per cent it is tax of $19S, ZOO, 900 an
| nually to support this system in supply
| ing the shortage in our money volume.
| The banks are interested in holding down
the volume of money and supplying the
remainder needed with their system,
They take the quantity of money in ex-
istence and stretch it like piece of rub
| Der. And they sometimes let loose of
| their end.''
THINKS HARVEY WILL GIVE UP IN
DISGUST.
| Mr.. Horr-That whole question wheth-
| er banks are curse to the world, and
| as to the credit of the country being the
country's life blood, will come later in
| this debate. When l reach it in the reg
ular order daughter and applause) it will
be presented to Mr.. Harvey's perfect sat
| isfaction. daughter and applause) In
| deed, doubt whether he won't leave the
| room in perfect disgust with himself for
| having entered into this debate. Naugh-
| teri l now proceed to the question I
was talking about.
| ct is all idle talk, Brother Harvey,
about silver costing 81 an ounce. To
| add to the cost of producing an article
all the money that has been lost in min
| ing speculations and gambling is too
ridiculous to permit child even though
| his name be Coin and though he be in
| spired, to announce as an economic prop
| osition. Gamblers are not producers
| The men who manage and operate silver
mines will not be diverted by such nom
sense as that. There are mines in the
! United States that can produce silver
and save money at Is cents an ounce,
| large mines, that are doing that very
| thing today"
Mr.. Harvey-Mr. Horn, that is your
| individual assertion, for which you have
no proof. loud applause)
Mr.. Horr-I hold in my hand PAM
phlet written by M, L.. Scudder, who
| spent long time in the mines of this
country, and obtained from the mine
owners themselves the real cost of pro-
ducing the silver per ounce, and the year,
| taken from the books of the company
and in it there is one mine where the
| cost was only 13 and a fraction cents,
| and he names another where it was "a
cents Now submit that that is ample
proof of the proposition I stated and I'M
| dertOOk to make you understand here
previously. Silver mining is like any
thing else. Men do not engage in it as
business for fun, they engage in it for
the purpose of profit, of getting ahead
in the world and whenever silver min
ing costs 81 an ounce men who are in 1t
paying their expenses and can only sell
it fir 60 cents will quit that business, you
know (applause), yes, they will the world
over.
SOME SILVER MINES WILL DO BUS
| MESS.