The times. [volume] (Richmond, Va.) 1890-1903, 1896-08-23


less through improvements In the pro-
cess OF production and the demand Tor II.
has grown less: and. when We see com
mOdities rise it Is not because The coin
and circulating notes hay. increased IN
quality but betause more !3bor - i".
Ouired 10 produce them. and the demand
for them fas Increased -.
refer again to The Illustration freaS
Britain furnishes Of tho very small Juan
tliy Of actual money necessary io' a
fabulous structure OF those cieuls 10y
which business conducts its AFFAIRS fhE
land has no silver except the COINS t9e"
for subsidiary money. The Bank OF Eng
land has In its vaults now about .<fv wv
600 Of gold. and that j. the Only s.Es
accumulation OF 10 in the Kingdom Inc
local banks have. Perhaps. as Wu'n a.
$50. 900 100 more. This il all the gold IN
the United Kingdom that serves az "A has-
IL for business but with this SiOoupo.pp OF
god for a basis Great Britain has erect
ed "A 70 brio OF credit substitutes for NON
ey that operates the greatest commerce
tho GRID ever dreamed OF md that credit
fabric Is wider and higher than the imagi-
nation OF man can 20. But they never
taCpsr with their standard or value, and
confidence there Is always complete.
The bltrder OF the day IL the idea that
the money system is confined to coine-i
money and circulating notes
But they are only petty and in-ig-
nihcant fraction OF the money system.
The money system is the vast, inconceiv-
able mass Of credits that est upon
\
Whilst that standard is kept hyed, with
no threat TO degrade II With ffty-cent
silver dollars. tho god dollars that ws
have will serve as the basis for A mon
ey system OF credits that goes beyond tho
scope Of tho Imagination.
MIR. ST. JOHN STILL.
Bus 10 continue with Mr. st. John:
II II is TO be conceded that tho values OF
money. yet due consideration Of the cnse
must mako allowance for the part played
in II by representatives OF mOney-tnst -.
bank and mercantile credits. We know
that little or no business Is now done
with actual money. Steam and electrici-
" have done away in great measure with
the use OF money. Business is chiefly
done now by trarsfers OF credits. tho rec
Ords showing that % per cent OF bust
ness transactions are done by transfers
Of credits on the books OF banks. II.
therefore Mr.. st. John will have 1t that
the quantity Of money regulates the prices
Of commodities. he must include as money
the credits that are used in business,
for. So long a. confidence Is maintained.
this vast volume Of credits does the WORK
OF money just as effectually as actual -oid
dollars do or can do. This being so. th-
quantity o. What is for all prsc.icai puT-
poses. morey is. at this moment. poten-
tally, unlimited, ard prices ought TO ne
just as high. therefore. 80 abundant money
could make them.
But another fails6y turks IN Mr. ~.
Johns pTCEcsiticn.
In order TO have the abundant money
that he relies UPON FOR making high
prices he wcUld inject into financial
system that now rests upon hundred
cent dollar n new dollar worth only uf-
ty-thrse cents. This would. OF cours-.
drive the CT o m ndi cd-cent dollar out OF
circulation, and We should consequently
have only tho nfty-three-cent dollar,
worth, or course. much more as specu-
lation made II worth for a time. IL would
bs "A long time Before enough or these
nifty nhree-cent dollars got into circula-
tim 70 make money a. abundant as II now
is. But foning them into the currency. ana
thereby forcing men who had one hundred
cent? due them 10 be satisfied with NIFTY
three cents cor whatever else the silver
dollar might be WORTH. would utterly
b,verthrow condolences ana produce an
enormous diminutiOn or credit The man
cial system would therefore al once lose.
in the departure Of the one-hundred- cent
dollars and in the diminution or cred
it's. an enormous volume or the agencies
by which il does its business and thu
quantity or dollars and substitutes for
dollars which DO tho actual work or dol
lars would. OF course. be enormously de-
creased.
The grsat trouble with all those who
ask for the free coinage OF silver IS that
they have not graspei this foundation
idea that under the conditions now exist
ing in civilized countries. business - eA-
change OF commodities by transference OF
the credit values Of the commodities, and
that coin and bank notes have there-
fOro como 10 play a very small part IN
the transactions Of life. This - tho re-
suit OF steam and electricity. we trans,
fer bulks from point 10 point now as II
by magic. We fash Intelligence all over
the face OF the earth enabling men sepa-
rated by thousands or mules 10 prScll-
cally converse with each other as n
face 10 face. The country 10 covered over
with a network OF banking that furnishes
the credit instruments or exchange IN any
quantities called for. The result u we
are enabled 10 do all business win cnrd-
its az our medium or exchange. lbs
new system has enabled men to get along
with lar less actual money cine money
OF tho money metals) man IoImsrIy,
And this enables them to choose thcr
neral Now a dollar OF silver weighs SIX
teen times as MT en- as a dollar OF goa.
No man is going to handle the heavy COL
lar II he can get the hGht one nc "
mfnished need for actual collars MAKES
the gold dollars abundant enough 10 an
swer the need for dollars, and as men
have their choice. they call FOR gold DOL
lars and neglect the silver. rms laet
plays as great a part IN accounting ioI
the decline In the value OF SILVER a. ,mo
Increase OF its production. II IS over
nroducrd and tho demand Tor IL Is steaHl-
~ falling or. ,r-o,>-r. cor n
PRICES UNDER CAlIt9hNlA HOhD
PRODUCTION.
In tina neriod 1sJO-5g occurred tho
great gold productions OF this country ana
Australia. the world having added TO US
stool, IN that time the astounding sum OF
81 400 900 900 OF gold. but prices rose very
little comparatively. at any part OF tne
dead. and were lower In the average
than at many other PERIODS. Alter mo
Euronean NapoleOnc wars. wnen pro-
auction, had been so immensely inter
fer-d with, prices were up 10 IL wv pe-
ing taken as tho average. But curing u,s
drcads $4,000 the average or prices
was only o.. 100 being taken as TIC
standard. This IS completely shown IN
Ssmerbecl<'s tables. and explained 10 run
"a he New york Journal OF Commerce
for october 5. 1894 Ihat paper s fe'"''
cpEDrrS THE PRACTICAL MONEY
of THE COUNTRY.
A, tbs risk OF repetition, l must say
again a. this point that inc minus q. W.
neopls must have cleared out Oh tnen
tbs all-prevaent errors
/. That the business OF inc county, ndi,,. -
done bv buying and Sc mag couInooitles
Tor coin or those circulating notes thal
we call money. X..A ...,
ness conducts its affairs Is that coin and
those notes. -, A.. g.. .r-.-
pn.iness IA the exchange Of mmodiues
h.tween localities effected by shipping
the actual commodities over the railways
and by steamboat from one locallty 10
another. and then by balancing up the
cLecks and drafts drawn from each To-
c.ii,v for the money value OF these com
nodities. and paying the difference IN
coin or currency. That IS the way busl-
ness is actually done. and money or cur
rency notes play no part IN II AZ an eh-
cept TO make up balance When usolts
and credits do not agree. That Is busi-
ness. -, J. 4. -
As TO the second error. this Is to be
said There is only one money. II IS true,