The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-11

| moro OF his wealth in the form OF cur
rcncy than his business compeis MN
70. because the currency yields MN no
return so as little Of the currency ~
possible is in the form OF specie. pc
cause I'm that form IT costs very nuOh
more than II does In the form OF pape.'
j; Is not the lack OF currency that ie"us
TO the use OF checks. nor the lack oi
gold that leads TO the use OF currency
| u is the common business sense OF tne
individual and the community. But the
fact that n good deal less than one
per cent. of the exchanges effected on
! July LIST were settled in that kind OF
money which posses what is generally,
/ n somewhat inaccurately, known as IN
I trinsic value. and which Is at the same
time a medium Of exchange and a stand
ara OF value. proves how small amount
/ Of such money is needed by the country
The observation Of the vast amount OF
| business done with money that IS me-
dunn OF exchange and not a measure Of
value, has led too many persons to for
set the latter absolutely essential ele-
ment Of money. We may. for convent
cnce sake, agree that money Is any
TING that ruforms the functions OF
money, but we mrsi at the same time
remember tiat il is one function Of
t-'''NJ ~ hA'eA'bif NAllt. as Mtll as ans
other function Of money TO effect ex-
changes. and that paper currency does
not perform both OF these functions. so
that the distinction between the money
which performs both and the money
winch performs but one Of the two prime
monetary functions must be constantly
kept IN mind.
AS medium OF exchange the bank note
or the Treasury note IS perfect. within
more limited circle the personal check
IS equally efficient. But as none of these
'hihSs possess value none Of them can
measure value, except IN a representative
capacity. They are desired, and there
lore are Efficient in exchange. not for
'helr own properties, but because of the
titic they carry to some thing else. ultl-
mately gold. which IS a universal object
Vi uesire. Now, so long as these substi-
t"leS Tor specie are and are known TO
pe' perfectly redeemable i'm gold thoy
possess all the ADVANTAGES that speole
possesses as Instruments Of exchange
ana they possess elements of econoro,,
ahu convenience not possessed by gold
but their capacity OF measuring valus
is purely vicarious; Il exists only 10 the
extent to which they can be exclaimed
ioI me COINS which they represent
n larger amount of specie Than &c
needed to effect this Ike n Iarrer
amount or money In mercahnrs mi
~ an MS business calls for. represents
"'.e capital A larger amount Of cur
."Sy, "Tse amount OF specie. would
.''o.ore not lead 10 the Freaetr use
OF either; both are bound to be leea as
sparingly as possible. But maintai,,,,-
me Iedeemability OF the credit currencv
Is absolutely essential TO that currorc,,.,
berIorming the functions OF money. While
there IS confidence that the credit cur-
IehcY Goes possess redcorna hnitv there
is but little actual REDEMPTION required
TO demonstrate the fact. and as tho
cledit currency Of a national or como
rate character far exceeds The aworrt
or specie needed % be used. and ne nor
sonai credit currency. such as checks
ana bills. are readily increased in vol
une when credit is good and confidence
unoisturbed. ~ is obvious that the GUAM
uty or spccit is Of relatively small inn
poftaNce' and the preservation OF con-
hoence IN what nurports TO Do n meas
ule or value Is Of enormous importance
Inc Comptroller's invostige lions fur
ther prove how widespread Is the IN
teieat IN the maintenance UNCHANGED %
'ne measure OF value. lie computes that
mere are more than ten million donosi-
tors in banks OF an kinds. a number
nearly equal 10 the number OF voters
id the country brt OF course uenv ~
me denosiiors arc women and IN tho
TOTAL there IS much Duplication PIT
tH't the number Of depositors I'm banls
h aifnos' the number Of voters is fac.
OF much interest and IL cannot fail m
pe tact or mucn significance Tho
amount TO their credit IS estimated o.,
I'VE billions Of dollars A part Of ttis
money is lying IN the reserves 81 mo
institutions where II was denoeited Much
'he greater part has been loaned n
persons and corporal ons carrvfre, n,
business reduction Of ono-harf IN tho
Nalue or the dollar would rummarily
transfer two and half billions from de-
posters IN Tho banks 10 tho individuals
ana corporations who have borrowed
from the banks and This transfer would
iniiict loss on nearly as many families nc
tnere are In the country. though. OF
course In the distribution Of the results
more than one loss would faf on oooh
one of manv families and MANY other
families would suffer none Pint whom IN
aofrion 10 all the don0eifors IN com
merclal banks and trust cownanios We
consider all the den0sifrrs IN eaviree
banks we realize what an enormous num-
her Of persons are interested in main
tanning the dollar ~ its nreenn- value
oven though we IGNORE tho members ~
hnlding associations and the holders OF
insurance policies