The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-23
IDLE MONEY.

In almost every speech that Bryan makes
he dwells on the scarcity of money, the
difficulty of obtaining it, etc. He says
there is not money enough to do the bust
ness of the country and that there is a Sc
cret process Of contraction going on. In
one sense he is right. There is not as much
money in circulation now as there should
be-. 1t is hard to get. 1t is hard to earn.
and collections never were more difficult.
Although business is abnormally dull, there
Is hardly money enough in circulation to
meet the demands of trade. Yet the NOM h
ly treasury statements show a steady in
crease in the volume Of currency. They
show that instead of contraction there is
going on a steady expansion of the curren-
cy-not very great, but steady. The total
amount of money in circulation on the 1st
Of July last, according to the treasury
statement of that date, was 1909, 725, zoe.
On the LIST of August, by the same author
ity, there was 81, 514, 900, ZAP; on the 1st of
September there was 81. $50, 1853, 634. and on
the LIST of October, s1,5S2, 302, 2S9. Yet. in
spite Of this steady increase in the volume
Of currency, there is a decrease of money
in active circulation. 1t is outstanding, but
II Is lIlpiSlDIer 1t Is ia lIG cOuIllTy, put AlUL
in circulation. Where is it? 1t is locked up
by the banks, where it has been deposited
by the people for safekeeping, and where
it is held till the free-silver storm shall
blow over. A prominent banker of this
city said yesterday: Bryan is right when
he says there is not enough money in cir
culation. There is much less in circulation
now than there was when he was nomi-
mated, and is growing less every day, and
will continue to do so until this agitation
ceases and confidence returns. Mr.. Bryan
himself and the cause he represents are
mainly responsible for the fact that while
the amount Of money in the country is
increasing the amount in actual circulation
is decreasing. The money that is deposited
in banks belongs to the people, and the
banks do not loan it out because the foun-
dations of business are unsettled and the
future is uncertain. When the silver ques-
ton is rightfully settled and confidence re-
stored they will be glad to extend their
loans, for hat Is the way they make their
profit. Idle money is of no use either to it's
owners or to the banks. To be of any use
it should be earning something; in other
words, it should be in active circula-
ton, and it would be but for the untimely
and dangerous agitation that is now GO
ing on" The statement of this banker
that there is less money in circulation now
than there was when Bryan was nom
mated and that it is decreasing every
day is borne out by bank statements and
reports all over the country. These show
that the banks are carrying from IS to 100
per cent. more than their legal reserve.
The national banks in twenty-five cit
les of the country are required to car
ry 25 per cent. reserve, and all others out-
side of those cities Is per cent. According
to the last report Of the Controller of the
Currency there were BAT banks under the
25-per-cent. reserve regulation and 1856 I'M
der the 10 per cent. On the 2Sth of Septem-
Der, 1896, these banks were required to nave
a. total reserve of $406, 271, 726, and they ac-
tually had s571, 476, s54. Their legal reserve is
the same now as it was then, yet it is esti-
mated that they are carrying at least $780,
000. o06. In other words, they are carrying
nearly $500, 600, 600 more than they are re-
CURED to. The excess represents the idle
money in the national banks alone. To
this must be added the vast accommodations
in State and private banks. all of which are
carrying excessive reserves. The total
amount of excessive reserves in all the
banks and moneyed Institutions of the
country must be fully $500, 900. 600. This ac-
emulation of idle money is due to the free
silver crusade. If Mckinley is elected con-
fdence will return, and the boarded mil
lions which are now lying idle will be
out and go into the various channaIa
of trade. Bryan is right; there is not
enough money IN circulation.
CHE Al MONEY GOIxupX