St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-20

are writing matter for their farmer
readers. But most people-including
these editors when they are met with
| note or I'LL to meet-regard bankers
as being rather useful sort Of peo-
pie, to whom they entrust what surplus
money they have for safe keeping and
small increase. So much so is this the
case that these bankers owe their de-
positors some $4,000, 900, twice the
quantity Of money in the whole coun-
try. making them about the largest
class Of debtors in the country.
The same paper in another place
tells its readers that the value of
everything has been cut in half be-
cause silverB was stopped from going
freely to the mint, that is, because the
supply of money! was thus diminished.
The need, then,C is for more money.
Now, there are two kinds Of money,
metallic money and credit money
When a farmer buys a horse or i'm
plement and. gives his note for it, he
issues just so much credit money. Be-
fore the note gets around to him for
payment it may pass, in exchanges,
through a dozen hands, performing
every function of money This is more
apt to be the case when his ability
and his willingness to pay are I'M
doubted When a farmer signs a note
with another as security, he merely
lends his credit, and the note becomes
credit money. This sort of money is
always payable in metallic money. and
metallic money is always furnished by
private individuals Governments do
not dig the metal or own and operate
the mines. They simply, for general
accommodation, give the metal form
and accurate and fixed weight.
bank note is simply the paper rep
resentative of the credit of the banker.
Ihere is no reason why any man of
means and ability to pay his paper on
demand should not make his rromis-
sorry demand notes and lean them to
those who want and can use them. If
others, relying on their solyency are
Wiling 10 take them in exchange for
What they have, why not? There is
not now and never was and never will
De metallic money enough to make the
exchanges Of commerce Only some
or per cent Of the commerce of the
country is now done by what we call
cash, whether metallic or paper
money. The rest is done with this
private credit paper, in the form of
notes, drafts, checks and so on. Credit
money Is one of the great inventions
OIL commerce. and mankind would moi
be where it is were it not for that in
vention. 10
But if men are TO use their good credit
ana make and loan their notes there
should be somewhere and somehow
such supervision as will insure the
absolute payment of the note in metal
lie money when presented. Here IS
where the government comes into the
business. and the only place where it
has any business at all. 1t is one Of
its proper functions to see that ample
provision is made for this. taking
under its care, for the common veal a
business that exists anyway and is
perfectly legitimate one. Now the gov
eminent does not floan bankers money
at L per cent and, the editor knows it
does not. It charges national bankers
1 per cent year on their circulation
as a tax to cover the expense of ST.
pervising them and seeing that they
are solvent and ready at all times to
redeem their notes. If a quarter of this
tax is sufficient, no more should be i'm
posed; for, what the editor overIooks.
the borrower of bank notes has to paw
the tax. 1t is part of the expense of
the business. and, of course, has to
be paid out of the profits, which come
mainly from the interest charged
These facts are matters Of such COM
mon knowledge that it is only some
exceptional and peculiar mental forma-
ton that renders it pc ssible for an
editor to make such statements as
those quoted, admitting, of course. his
honesty.