The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-06

It is naturally difficult matter for
a man who gets his wages every week
in cash and spends the greater por-
ton in his living expenses or for the
man who takes his load Of grain to
market and gets cash for it with which
he makes his purchases at the store,
or pays his interest or note, to realize
how little part actual money, cash,
plays in the greater exchanges, either
between different sections of the coun-
try or with foreign nations. To their
minds the same methods used by them
are used in these larger transactions,
and, contemplating them and reading
the statistics Of trade, 1t is little won1
der that they agree with the dema-
gogue, who tells them that there is not
enough primary" money in the world.
Could these men realize how little
part actual money plays in these trans
fers of property that exceed in value
the mere retail transactions, how cred
its have been devised to dispense with
the use Of money and what an i'm
meEse economy, directly affecting
themselves, has been effected by it,
they would take less stock il: the man
who comes on the hustings or in his
newspaper to tell them how essential it
is to increase the quantity of what he
calls primary" money They would
realize how infinitely more important
1t is that they do nothing to disturb
fha vastly crroa for moro Ua1Ila hIo
factor of credits. This phase of the
money question has been too little
touched on in all this miscellaneous
discussion of standards and rates, of
primary and credit money, and it is
the most important part of 1t. When
only ten dollars of actual money is
needed to make one hundred dollars
of exchanges it is plain that anything
that will shatter the foundation of the
ten dollars will affect values ten fold
greater in volume.
If any misinformed man, holding err
roneous ideas of money and trade ard
also, usually, an absurd prejudice
against bankers, could overcome the
last long enough to go to his village
banker and ask him how the goods
bought by the village merchant are
paid for, and how the elevator and
stock men who buy the grain and cat
tie, ard hogs, get the money they pay
out, we doubt not his banker, usually
difident because aware of the preju-
dice existing against him, would make
the processes of exchange by which
debts are paid without rooney very
plain in a few moments He would
tell him that the business Of the bank
was to receive the idle money of the
community, for which its owners could
find 10 employment, and get it to work
earning something. The grain and
stock men would be the ones by whom
this idle money would be used.
They would get credit at the bank and
pay the farmers with checks on the
bank. When either made a shipment
to market he attached to mis- shipping
receipt draft on the person to whom
he consigned his grain or cattle and
left it at the bank for collection. The
bank passed it to his credit and sent
1T to its correspondent for collection
where it was placed. when collected, to
the credit OF the village bank.
The farmers cash il the checks re-
ceived from the buyers and buy sup
plies at the stores. pay debts ard take
the remainder home. The merchants
deposit the money il the bank to their
credit. Having bills to pay to the
wholesaler the merchant draws his
check On the bank, receiving in ex-
change draft on the banks corres-
pondert. Here, then. we have a sum
due the village bank from its city cor
respondent for the money received in
payment for the grain CT stock, and
also an order on It foT the amount the
naerchart's draft calls for. The whole
safer. en- receiving the drae.., does not