The Caucasian. (Clinton, N.C.) 188?-1913, 1895-07-18
BANKER REEDS
STRONG TALK.
A Brunswick Banker Who Has
Studied Finance--And Talks
Plain.
Ri METALLISM THE BASIS


p..t-How Contraction brings stsgna-
tlon-what Money il Made OF.
From The Atlanta constitutional
one Of the most notable papers
read before the recent meeting Of
the State Bankers Association at
Brunswick, was that OF President
Reed, of the Brunswick National
bank. His subject was "Some Past
Financial Systems and Lessons
cleaned Therefrom." He begins
with a definition of money, and
while his paper is u very able one
throughout, the CAUCASIAN can
mot, on account of lack Of space,
giye more than extracts from it. Mr..
Reed, in his address, began as fol-
lows:
"lf we could penetrate with the
eye of historical knowledge through
the msts of Plato's myth we might
discover on the Island of Atlantis,
amidst its wonderful civilization,
the perfection of financial sys-
tenn. But among the martyrdom of
literature, fell the great Alexand-
rian library, that held in its sacred
precincts SO much that told of ante
diluvian splendor and achievement,
and only Solon, the great Athenian
lawgiver, saw the passing flash of
that sublime past.
"But live, responsible history
holds much in store for us-even
though it be history of many fail
ures and few successes-that with
careful study will aid US in deciding
intelligently upon the issues that are
to day confronting us.
ain the study of q complete fin
nancial system two elements must
be considered-first, money, and
second, its agency of circulatiOn-i.
o., money and banking.
DANGERS OF DIMINISHING SUPPLY.
Money is defined by the United
States monetary commission of 1878
as the great instrument of associa-
ton, the very fiber of social organ
ism, the vitalizing force of industry,
the protoplasm of civilization and
as essential to its existence as oxy-
gen is to animal life. Without
money, civilization could now have
had beginningiwith diminishing
supply it must languish and unless
relieved finally perish"
In short, money is the instrument
Of exchange, and is a reliable meas
ure of value, only SO long as its ra-
ito in strength and volume to the
volume of trade remains uniform.
"The functions of banking are re-
ceiving deposits; loaning money or
notes, making collections and issu-
ing bills of exchange. To these func-
tions is sometimes added the emit
ting of bills of credit.
Money is either issued directly
by responsible governments or Is au-
thorized by such governments
through banks of issue upon some
safe and satisfactory basis. In prim-
tive conditions, where governments
are not sufficiently powerful to main
tain q financial system, some com
modify performs the functions OF
money; gold and silver are the com
modities most generally chosen un-
der such circumstances, as their
qualities Of portability and durability
render them more desirable than
other commodities. Many other
commodities have, however, beer
used satisfactorially. In order thai
the necessity for weighing and assay
ing the metals with each purchase
may be obviated, this service ii
done by some reliable individual OF
association of individuals, some
times under authority OF an organ
lied community of people, and some
times not.
True money can only exist wher'
the government that issues 1t, or au
thorlzes its issue, is sufficiently pow
ertul to levy and collect taxes and t.
fulfill its obligations.
DEFINITION OF AUTHORITIES.
THE money function may b.
either attached to commodities O
not. Law alone makes money. l
this statement is questioned l viii
cite eminent authorities:
Aristotle: Mon ey exists not by ma
ture, but by law
"Encyclopaedia Britannica: 'Th
theory Of intrinsic value of mon
ey has been abandoned by the bes
writer's and speakers
Henry Clay: whatever the gov
ernment agrees to receive in pay
ment of the public dues is money
no matter what its form may be-
John Stuart Mill: There is n
more insignificant thing, intrinsi
cally, in the economy of society tha
money!
"Ex-Attorney General Ackerman
Money is not a substance, but a
impression of authority-a printe
legal decree"
North British Review: 'Metalli
money, while acting as coin,
identical with paper money in r.
spect to being destitute of intrlns
value
American Encyclopedias: "A
article is determined to be none
oylreason of the performance by it I
certain functions without regard
us form or substance
Charles Morgan, of France, a.
thor of great work on money: M
talllc money, whilst acting as none
Is Identical with paper money in r
sspect of being destitute of valu
Com, so long as 1t circulates for Il
purpose of buying and selling, los
ns sintrinsic value. AS cOmmoditie
gold and silver are capital, but
money they are mere represent
ives of value.'
In Buckles Matchless 'Histo
OF English Civilization occurs t
following (Vol. l, p. 1869: GO
ana silver (money) are not wealt
out are merely the representative
wealth. Money is of no possible u
20 nation except to measure a
circulate its riches
MONEY Is NATIONAL:
Money is not International; it