The times. [volume] (Richmond, Va.) 1890-1903, 1896-02-11

lat iten ldttl Aitohhu al 10 i"itt'iN"
lions. It would have been found out that
those two credits represented TWO ST. a
rate commodities that were snapped
between two noiehborhoods. and that the
whole business amounted 10 that and
nothing more, though the two credits e.
fected many other swaps while they
were travelling around and finally meet
ing each other in their clearinghouse.
Now. observe how al this can be done
without any money al all. The IA ~
who wants 10 buy has an unincumDere''
dwelling house on Franklin Street Ncilh
$4,000. The president OF his bank opens
a credit for him on his bank-pooks ot
$4,000. relying upon this mans honor
that his dwelling-house shall stand spcn-
sor for the credit rhe man who las
borrowed pays for what he buys win
check on this credit. To mdnlDuaies
the thing bought. and then puts il INFO
the channel that will finally land IL vince
il IS wanted for consumption. Somebody
IN that ncighborhood has done the same
with a commodity that this borrower 8
neighborhood wants, each neighborhood
gets the commodity Il wants, .-.e cnecAs
first given for each meet at the Richmond
bank and are exchanged, and the whole
thing comes 10 an end. This, then, is
the way business IS done. and not ly
purchase and sale for money. The u.e'ui
part Of money IN business, Them i9 10
furnish the standard Of value. the gauge
by which commodities measure ,ner
respective values. and find out the basis
upon which they may be exchanged FIR
each other. When that IS found OUT
business refuses TO make the excn1uges
with money because the process IS too
cumbersome. IL makes those exchanges
by transferring the credit values of ihe
commodities. Great quantities of actual
money are not necessary 90 these cN-
changes. Very small quantities of 1c-
tuaI money are st.Iaclt Tor them Do
great quantities Of money Should lave
the effect of interfering with this process
of business. which the affairs Of the
worll have established they would go
q fatal injury TO business. IL comes
down. then. to this. That great guam
titiss of money are not necessary TO
business. since it can be done with but q
small quantity. and IF we had great guam
fit,es of money. we might overthrow our
system of doing business by transfer OF
credit. and if we did We should inii.ct an
irreparable injury upon mankind.
But two things are absolutely inais-
pensable TO the course of business Ne
have described. The dollar must always
remain the same thing. IL must be
fixed quantity that does not vary 1t
can't be 2322 grains of gold worth one
hundred cents in gold, and at the same
time 511-4 grains of silver worth only
fifty cents in gold. n that happens cd
business consisting of transfers of Gecits
(and almost an business is aueW IS N-leu.
And Tie holder of "a +'aiit must
at AN times have the ueht 20 demand
actual money for it if 3D. chooses. 1t
must always Doe rcdeemable III money
ON demand. The whole science OF money
then. IS stated in these two propositions
Money must be a hXed and m.sal!iH5
thing. and credit subsidies for money
must he ALWAYS convertible into the 0r-
tual money al the pleasure OF tnc heli't
of chem. This S. the whole CASE WIN
those Two propositions jealoufiy guarded
very little actual money answers. hD7.-
moss runs itself hv tralf .ltil- iAe tltot