The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-13


business consists Of the purchase and
sale Of commodities for money-that ID
| for coin and circulating notcs-whoreas
the fact IS. as The Times has so steadily
| contcndcd. that BUSINESS is mainly moth
| ing bat an exchange OF commodities made
by swapping checks that represent the
| credit values OF the commodities. Judge
! Alkcn's theory. of course. requires
| Grca; sum OF coin ana circulating notes
! The Times requires none but what is
necessary TO maize change where checks
are snapped. TO make retail purchases
and TO pay iaborcrs. Judge Aiken
q cory would. # business were actually
done according TO II. require many times
tie amount OF coin ana circulating notes
| that we have. But as business i: not
/ actually done according 10 that theory,
bus is actually done according TO Tho
| Times theory. we have now probably
more coin and circulating notes than
we have any need of. If they were only
ratabiy distributed amongst the whole
| people which they are not. But as
Judge Aiken has staked lis case upon the
sue OF fact on this subject, let Us see
what lis evidence produced to sustain
bis side o. il amounts to.
lie FIRST quotes statement By Mr.
Robert Gncn. that banking facilities
and other methods Of economizing the
use OF coin nave not changed much IN
twenty years preceding 1857. 1t is quite
likely that this IS so. for in 1861 Englanis
present system. in which coin and cir
culaung rotes play the most insignificant
part. was very thoroughly developed. 1t
WAS hardly possible TO make mucn inn
provemcnt upon what it was in 1851.
we have not seen the taoulatcd state
mcnt Of the cloarings Of the Now York
Clearing House from 1863 TO 1895, that
judge Aiken refers TO, but We assume
80 correctly states the facts Ana what
docs j show?
That in 1872 $3.50 ana i'm 1873 $3.50 out
Of every si0O was done by checks, while
in lNe only $500. and in 1893 only SOTO.
and i'm 1891 Only $3.50 out OF every 500
were done by chccEs.M That is what Il
shows. and an trat it shows. But 1t
shows ;hat when even tie largest
amount was done by the use Of money
stu only $3.50 out OF each 500 was done
with money! We could furnish Judge
Aiken with sul stronger facts in his
behalf if he thinks such facts as those
holp his argument. The most recent in
vcsugauons of the Conn iroller Of the
Currency show that about per cent. Of
the National Bank clearinss have re-
Gently been with money.
They show that ON the 1st day Of July
last the reports from sixiy-six out Of
the sevonty-cisht clearinghouse in the
country prove that the total clcarings
amounted TO S2l1asj. 49, and that, Of this
amount the sum of slol'1s3i or little
over S per cent, was cash or cash cx-
changes.
But the great fact remains. nevcrthc- |
less. that % per cent. OF them were done |
by checks. The variations between Al |
per cent. ana per cent. are caused by |
accidents Of one sort and another. There
may De at one clearing more drafts on |
New York from St. Louis than there are |
from New York on ST. Louis and that |
viii throw the percentage Of money |
cicarngs that time out of joint. But 1t |
will not anec; the great fact that sub
stantially an the Wholesale transactions |
ore 10y checks. and not by money pay
mcnts.
judge Aiken IS. no doubt right in
thinking that al per cent. Of the de-
posits Of retail houses are in money.
Most Of the money that is used at an
is used at the retail stores. and the
storc-kccpcrs. Of course. deposit it all IA
their banks as soon as it is paid to them.
But it is paid into bank during the week
and drawn out Saturday to pay off labor
crs. and Then the wives of these laborers
spend it an mt the retail stores the next
Monday. and it is again deposited in bank
and drawn ont again at the end of the
week to pay off the laborers again, ana
so the same money goes through this
,rademin week after week, and month
aftcr month. and year after year, ana
IS seems to De a great big sum CT money.
whom it IS nothing. i'm fact, but the small
sum necessary TO pay off the laborers
I'm the town for one weeks work.