The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1898-08-11

tional bank notes and, to use the pop
ular language, money in bank--arc in
their nature ard essence onc--viH, they |
gre forms of credit. Their value, each |
and all alike, lies in the ability of the |
owncr to convert them at last into the |
only real form of money now existent |
..-lnctallic coin. And to push the qlcs- |
ticu Il little farther, the only value OF
the metallic coin lies, not in tho coin as
IL coin, but i'll the power Of the metal
the coin contains to exchange for other
things.
ut should here Lc noted that while
our silver dollar is real money it's power
to exchange for other things is mora
than doubled by another and artificial
value impaired to it through tho law,
which gives it power equal to the dol
lar in gold to pay customs dues. Hnv-
ing unequal value in this direction, the
quantity being limited, it hns equal
value in all directions, but the difference
between The metallic value of the silver
dollar and this arbitrary value lies il,
the realm of credit. What have so far
said lies at the foundation of the SUBJ
!jcct and must Lc first understood.
I'VE have now current in the United
States available in the purchase and sala
of commodities and for the payment Of
labor services the following agcnciees
''First, gold coin, silver coin - real
money.
"Ncxt, grcenbac!ls, treasury notes,
national bank notes; and bank checks.
The last four % be classified together as
forms of credit.
"Thcir respective legal relationships
to real money, however, are not alike.
| The national bank note and the bank
tender Of grcenbachs or treasury notes,
while the last two arc redeemed only in
coin or in payment of public dues.
"In passing it may be we'll to note
the relative use of these various agen-
cies in the practical operations Of COM
mercc and trade. No better place to
determine this can be found than the
counter Of II bank, and the following
statement of the amount of each re-
ceivcd by u bank in this city on re-
cent day will indicate their relative i'm
portancc in that direction:
Gold coin. .......................S .. .sSt
Silver com. I3,oI!
| Gold certificate es....................... 4,045
| Silver certificates. s...................... B.l29
legal tender notes and grcenbacks.. 2,la2
treasury notes ...................... a2'aco 'aco
| National bank notes. 33,26a
checI:;, a dra IT'S, bills Of exchange
"pcrccntage of cash to total credits,
five per cent.
"1lc lessen to Ec drawn from these
figures is this:
"Mucl the larger part Of all olir COM
mcr.cal exchanges is carried on by
bank checks or other instruments OF
private ce'tit. These instruments all
relate to Il certain form of money, in
place of which they for the moment
stand. If uncertainty intervene as to
what this related thing-ths money
is, or is to be, distrnst and confusion
enter in. The mighty agency of person
al credit is shaken. Commercial ex-
changes fall Off, trade languishcs and
industry declines.
y Il II
"Thc grccnback was issued to pay
|
was received, such value was either con-
sumcd or converted into value not avail
able in the market. The grccnloack paid
noldiers and government employees; it
bought powder and munitions of war
'rhe existence of a grecnbacl< is the cvi-
dcnce of u debt not paid. 1t is a lien
upon the future.
"a national bank note, on the con
trary, is the evidence Of some existing
value which lies rssomewhcrca as collateral
for its redemption. TO transfer such
values is the only ordinary and proper
occasion which calls for their issue. The
volume in which they will appear
marks the rise in prices or an increasing
quantity Of existing things. Like the
bank check, they will lie in active scrv
ice when trade and commerce are act
i've. Thus they enjoy the principle Of
elasticity, wholly lacking in any pos
siblc form of direct government issue
The method OF their retirement j!
wholly different and subjects the trade
and commerce Of the country to less
dangerous strain.
:. standard oy Va1mc.
; Our monetary standard IS nothing
| but a measure of values. Upon it's sta
biiity depend growth and prosperity
II must be recognized as he very best
abroad rs wcll as at homc-if our nc
tive commercial intercourse with tht
leading nations Of the world is TO con
tinue and develop.
Pepper by tho Year.
It costs the world 400, 900 annuall
10 pepper its food.