Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-05-10


ket price of gold in the several countries
with which we shall principally be con-
nected in commerce and to take an aver
age from them. The proposition between
the values of gold and silver is mercan-
tile problem altogether.
Q.-Does the free coinage of any metal
| fix finally its relation to any other metal
or commodity.
A-The free coinage of a metal at
given ratio is simply the legal recognition
of a fact already existing. When the
market ratio changes it is the part of wis
dom to change the legal ratio. When the
fuctuation becomes rapid and frequent
it is the part of wisdom to abandon the
metal that has shown the least stability.
The object of all coinage is simply to
furnish commerce with the best possible
instrumentalities of exchange. When any
of these instruments become impaired
there is no more reason for retaining
them than there would be for retaining
the stage coach as a means of transporta-
ton or preferring the ship of 1892 TO the
steam vessel of 1895.
Q.-Do we not destroy half the money
of the world by closing the mint to silver?
A.-The quantity of money in the
ity. Money that is unsuitable is nui-
sance; but, as a matter of fact, the silver
money today upheld to parity with gold,
equals in quantity of gold money and the
quantity of each exceeds anything known
in the past. As a medium of exchange,
coined silver, sustained by the credit of
the various governments is performing
this function rs we'll as it ever did Gold
l.. ! h. nrI .
medium of exchange in all civilized coun-
tries. 1t thus gives stability to all money
systems and enables commercial nations to
make their calculations concerning the
future.
Q.-What proportion of commercial
transactions are settledin either gold or
silver?
| A-Not 10 per cent. Comm has
certain instruments of its own which to a
| large extent displace the metals and to o
large extent give to those metals more
rapid circulation. The result is that only
the balances in all transactions arc settled
in money, rs at the clearing house and as
with merchants who keep accounts with
one another.
| Q-How much money is in circula-
ton In the United States.
About 1,750, 900. 900; 1924, 600, =
900 silver, S66l, coo, 900 gold, and slG9,
00G, 600 paper.
| Q.-What are the imports of the United
States?
A.-Under normal conditions the
United States buys of foreign nations
f, $500, 900, 900 annually.
Q-To pay this debt then requires
nearly all the money metal in the United
States.
A.-The great bulk of these goods are
not paid for in money metal. They are
paid for in the products which we export
the balances alone being paid either by the
export or import of gold and silver But
their values are all estimated by the gold
standard.
| Q.-Are the debts between individuals
settled in the same way?
A.-Thcy are If a man buys house
and lot he pays for it by draft on his
banker, with whom he has deposited his
crop of tobacco; or cotton, or wheat corn,
oats, hogs, cattle, or the proceeds of some
of these goods. The seller takes the draft
and deposits it with his banker, and no
actual money is known in the transaction
Q-Has not the decline in prices of all
of the products been due to the diminishing
supply of gold:
! A.-The supply of gold has not dimin-
ished. On the contrary, it has greatly
increased. In 1873 the gold product was
1896 200, 000 in 1894 was 1884, 000 900.
Q.-How much money is deposited in
the savings banks of the United StatesS
AIN round numbers 81. 739, 600 600.
Q-But You said that the entire
amount Of currency in the United States
was only 81, 75i, 900, 600 How can the
savings banks have the amount you states
Have they all the money of the United
| Statesf
"A savings bank receives deposit
of, say, $500. 1t loans this money on a
real estate mortgage. The borrower uses
the money to build house He pays il
out to contractors; the contractors pay
the money to the laborers, and the labor
or In turn deposits a portion of it In the
savings bank to his credit, and so the
process goes on year by year. The deposits
in the savings bank are mainly repre-
sented by the things which men exchange
money for-houses and lots, stocks and
bonds. and thousands of other things
which constitute wealth, of which money
| is a very small portion.