The times. [volume] (Richmond, Va.) 1890-1903, 1895-05-14
COINS FINANCIAL sCBoOI"--stC
oSD ARTICLE

We closed I'm our last with the statement
that we would to-day show that tie
transactions Of communities, States, ana
nations we're exchanges Of commodities
and not purchases for money. just as
much as IN, 90 Of the butcher and the
cutler were Shown to be.
This ought 10 be Obvious TO any one
who thinks. For how can community
or n ration continue to buy unless 1t also
cells? II would need to have an mex
haustible gold mine to do this Its trans
actions. Therefore are exchanges Of com
mciiiics put through the forms of sales
but exchanges Of commodities none the
less. We viii Illustrate.
A dry goods merchant IN Richmond
hrys one thousand dollars worth of
GOODS from a New York importer. a
Richmond tobacco manufacturer sells one
thousand dollars worth Of tobacco 10
New York exporter. who pays for II by
sencing the Richmond manufacturer
check Oh the Bank OF New York. Tho
manufacturer deposits this check In tne
First National Bank Of Richmond for
collection which thoreupon has New
York exchange for sale. The dry goods
merchant drops in there that day in
quest Of Sew York exchange to pay for
his purchases. lie brings some notes or
his customers and gets the bank TO dis
count them, whcrcupon he gets 4 credit
On It's books for $1,000 lic gives the
bank a check on this credit for 81 600 for
the New York exporters check on the
bank of New York. and the First Ma
tonal passes the credit that the dry goods
man had received for his notes to the to-
hacco manufactures. who is thus paid Tor
his tobacco. The dry goods man then
sends the exporters check 10 The New
York dry goods importer. and the credit
on the books Of the Bank Of New YORK
IS transferred from the exporters ac-
count 10 the importers account ana hc
is thus paid for his dry goods. Now, in
this whole transaction there has not
been one dollar of money used. and the
AFFAIR was moth ng at bottom but swap
Of some tobacco for some dry goods.
We propose now 10 extend this principle
10 a place which has nothing 20 swap.
but which puts its thrift and enterprise
ana energy and credit in the place of a
commodity to be- exchanged
Richmond has large trade in the colt
ton sections OF North Carolina. South
Carolina. Alabama. and Georgia. One OF
her hardware merchants has bought goods
from New York importer A country
store-kceper in South Carolina has traded
goods In the neighborhood for cotton
which he has sold in New York. and ne
has received check on New York
bank In payment. Richmond's hardware
merchant sells this store keeper $1,000
worth of goods. and has the New York
check endorsed over to him, and be en-
dorses % over to the New York importer.
and cotton is thus swappod for hardware.
Richmond had no cotton 10 swap Tor
the hardware. but her merchants were
fhrewd enough 10 see that 10y enterprise
and energy their situation gave them
advantages In getting what South Caro-
lima wanted. and selling it 20 them on
terms that would make her prefer buying
from them to buying from anyone else.
They work themselves in therefore. as
the Intermediary for exchanging the cot
ton for the hardware that South Carroll
mans want and make the commission.
This IS a case where all the business is.
Ike the first one done by exchanges OF
commodities and without the use OF
money TO any important extent; Rich
mond's money was her brains and energy.
and. above an. her credit. which grew
out Of her merchants always performing
their contracts literally and exactly as
they made them. by paying full dollars
where they promised dollars, instead OF
dollars worth only nifty cents. even II