The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-22

civilized countries. 1t thus gives stability
cial nations to make their calculations con-
corning the futurG
Q.-What proportion of commercial trans
actions are settled in either gold or silver?
A.-Not 10 per cent Commerce has GER
tain instruments, OF its own which to a
large extent give to those metals more
rapid circulation. The result is that only
in money as at the clearing house, and as
with merchants who keep accounts with
o.-How much money is in circulation in
the United States?
zee, oo DO s5o 600 osS c SS silver
Q;-What are the imports OF the United
A-Under normal conditions the United
States buys of foreign nations $500, OOoO 600 an
Q.-To pay this debt then requires nearly
ali the money metal in the United States?
A.-The great bulk of these goods are not
paid for in money metal They are paid
port ' or a import TOP Of gold and silver. But
their, values are all estimated by the gold
o.-Are the debts between individuals set
A.-They are. If a man buys house and
lot he pays for it by a draft on his banker,
with whom he has deposited his crop of to-
crops. The seller takes the draft and de.
money is known in the transaction.
Q.-Has not the decline in prices of all of
the products been due to the diminishing
A-The supply of gold has not dimin-
ished On the contrary, 1t has. greatly in
zoo. 600; in issz It was sisa:6oo. 900
Q.--Has not the decline then been due to
Aft by a demonetization is meant that
silver has ceased to be used as money,
there has been no demonetizatil9on, Tor, as
i have stated, there Is more silver money
in the world to-day than ever before.
Q.-To what is the decline in prices at
A-Overproduction of many leading COM
modities. Too great supply Tor the actual
Wells agree that the decline has been due
to the vast improvements IN the various
processes Of production Edw wa mdKin 1so
analyzes the decline in prices OF various
products and declares that this decline has
the processes of production would justify.
and that the decline has been checked by
that natural law which increases the con-
sumption as the prices rail-
Q.-Is there any scarcity of money in the
United States?
A.Non the contrary, the amount of money
in circulation in the United States is
greater to-day than 1t ever was before: And
there are hundreds of millions lying idle in
the banks waiting demand Tor profitable
investment.
Q.--What is the amount of money in cir
culation or in bank now?
A.-s1,754,Oc0.OOo. BY money in circulation
1 mean money subject upon call to the
subject to call It is deposited there to be
used on demand by the man who puts 1t
there. Money in bank is far more erective
that is: far more active, more actually
"in circulation''-than money in man S
pocket. 1t is loaned, taken out and used to
pay wages and comes back again through
other channels, and is thus kept in con-
slant circulation like water in the we'll,
whereas the money that a man hides in his
stocking or keeps in his pocket serves one
purpose and one only, it gives assurance to
that one man that he is not dead broke.
~ &c ilro ofor in
Q-Does the establishment of a bank in
community increase or decrease the sup
At probably does neither, but it gath
ers from various hooks and corners small
sums that IN the aggregate are powerIu III
money which before was ineffective. almost
useless, becomes the basis of various COM
mercial enterprises. The establishment OF a
bank, therefore, while 1t does NOT increase
the. amount of money in community,
In other words, it makes 1t more effective.
Sinking we'll does not increase the water
in the earth, but it makes it more easily
what he calls the redemption money
that is the money OF the standard metal,
has A is n nOs true on or
forming the function of money and thus IA
cilitating exchange has the same influence
upon prices that TIE s3salsd RED redempson
the bullion report. 1t is shown in the his
tory of the continental currency of the
in MIRA FTan s It IS shown by the history Of
greenbacks in the United States from 1862
Southern States during the Confederacy.
Q.-Who are the depositors in bank?
A.-Merchants, manufacturers, farmers
and laborng men and women, a multitude
of people everywhere who have saved much
or little for investment or have stored it up
to be used for the education of their chill
dren or for some other comfort or pleasure.
Q.-Who are the stockholders?
means who have no business connection but
who have put their money into bank stocks
in order that they may have. some income
from it, and this money is loaned by the
banks to the active men of business.
Q.-What is the average, holding of a
IS T. ane There are as
holders, and the total amount of national
bank stock is s672, SO. ss1.
Q.-What is a savings bank?
A.-The savings banks of Massa chusetts
are the typical Institutions of this kind and
stock The money is deposited in the
banks, carefully invested, and the. interest
returned to the depositors-
Q.-How much money Is deposited in the
savings banks of the United States?
Ain round numbers sL7ss.ooo 600
of currency in the United States was only
$1,754,O0O.OO0 How can the savings banks
the money of the United States?
A savings bank receives deposit of
estate esg s'G mortgage ' The borrower uses the
money to build a house. He pays 1t out to
contractors; the contractors pay the money
to the laborers, and the labOrer in turn de-
posits portion of 1t in the savings bank to
his credit, and so the process goes on year
by year. The deposits in the savings bank
are mainly represented by the things which
men exchange money for-ilouses and lots,
stocks and bonds, and thousands of other
things which constitute wealth, of which
money is very small portion.
Q.-Who are the depC sitors IN a savings
bank?
Amen and women and children of small
means who have small deposits put by for a
rainy day drawing a small rate of interest
and gradually accommodating
Q.-Then the savings banks are not owned
by the bloated capitalists?
A.-They are owned, on the contrary, by
the Woodworking people OF the United
States.
Q.-And the national banks are not owned
by Wall street?
A.-On the contrary, they are owned by
people most of whom have never seen Wall
street
O.-What would be the effect of the free
coinage upon the savings of these millions
OF American men and women?
A-Free coinage would change at once the
standard of all values 1t would depreciate
one-half the value of all savings deposited
in the national banks, State banks saw
ings banks. 1t would lower one-half the
value of all life insurance, 1t would decrease
the purchasing power of pensions one-half.
and of all fixed incomes; 1t would make
borrowing by the poor difficult and ex-
pensive If not impossible; 1t would advance
the rate of interest just in proportion as