The advocate., 1895-08-07

premium was; it wasn't here. nor in
New York. The freight and insurance
and expressage would more than con-
sumo that or per cent, not to speak
OF being out of the use of his money
IN the meantime. Hence he would
take 1t to the United States mint and
nave 1t coined into money that he
could use Immediately. (Applause.)
We have thus far considered what
primary money should be made of and
its relation to credits. 1t is important
In the study Of money to inquire into
the quantity necessary to transact the
business of the country. How much
money does the aggregate business of
the country demand? We have seen
that there is not to exceed $500 OOO, 900
OF primary money (golG in this coun-
try, and $1,600,OO0,O 900 in circulation of
primary and credit money combined.
If this was properly proportiOned-
credit to primary money-Would it be
enough?
"AbOy OA DanhinR h6OnOuSs
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
Appendix" we have been using, pages
215 and 24O-I now hand the book to
Mr.. HOrr-shoW that the total deposits
Of the people in the United States at
a certain day in 1893 in banks of all
kinds, were $4,848, 1862, $780, This is in
the face Of the fact that there is only
$l,60O,000,0O0 Of money of all kinds in
circulation; and it, as we know, is not
all deposited in the banks. This leaves
at least $3,300,OOO,000 more money SUBJ
ject to check than there is of our whole
stock Of money. The surplus is what
is known as bank credit and check sys-
tenn. 1t also indicates what is nor
NAL amount Of money for the transac-
tiOn Of the business of the country.
Give it your impartial judgment, and
you cannot escape the conclusion that
the $4,80O,00O,0OO approximates the
quantity necessary. You cannot say
that it is in existence, for it is not.
You cannot say that it is the capital of
the business men, on which they are
transacting the business of the coun-
try. You can only say that experience
teaches that so much is necessary.
You cannot say that it exists. 1t rep
resents the amount of cash capital nee
essary for the business Of the country,
but it is not cash capital 1t is one
third money and tWo-thirds bank cred
1t. There is One-third enough money
to furnish capital for and facilitate
the business of the country and the
banks, with their credit system, fur
nish the other two-Chirds. On the
one-third we pay no interest. 1t is not
interest-bearing money; 1t is the money
of the country. We pay interest on the
other two-thirds. To say there is
$4,000, 100000 deposited in the banks, is
to say at the same time the banks are
drawing interest on $780, 900, 900 of it.
1t works this way: "a" deposits $4,000
in bank. "B" borrows the $4,000 from
the bank, but does not take the money;
it is placed to his credit. Now the $1O,-
900 has swollen to $4,000 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 100000 on
deposit. Interest is being paid on $780,
900 of it. "a" has $4,000 to his credit,
the capital in his business, on which
he is paying no interest. "B" and "C''
have each $4,000 to their credit as cap
ital in their business, and they are both