Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-05-20

and n shrinkaFc OF values began. Rail-
road stocks fell ana mortgages were
forccioscd on them. The gseat banking
firm OF Barring Brothers .iicd In fon-
don. as one OF the first great results Of
the apprehension Of Investors. and the
shrlnkngc Of values. This cataatrophs
was followed by others and In tho
United States men began to hoard thel.
money In place Of putting II into banks.
The result was currency famine.
To supply this deficiency. eastern
banks had resort 20 the issue Of olear-
ing house certificates. for the settles
mont OF mutual accounts. hut also In
tended for circulation. These were Ia-
sued In fofnc cases by temporary COM
mittecs OF banks. In towns where no
clearing house existed. the associated
banks ~ the locality being bound to re-
deem them In lawful money Certified
checks. pay chccka. and other cxpcdl-
ents were similarly employed. Then
the money panic suddenly collapsed.
but business continued dun a. a result
Of u FOR y year more. The emergency
currency Issued by the banks was re-
deemed by them NJ fast aa Il was pre-
rcntcd and disappeared from clrcuia-
tion. having served It, purpose.
ANCIENT EXCHANGE.
In rude times the people Of neighbour
inR countries brought their goods for
sale TO common falrH. where one Kind
OF goods was valued and hnrtcrcd for
another. These dealers brought with
them little gold and silver 10 settle
the balances. This IL the best explains
ton TO this day of the transactions %
International commerce. tiy means Of
banking and the buying OF exchange"
the goods Of nations ~" exchanged FOR
each other and gold and silver are aoid
by weight to settle the balances.
Exchange bills may have been In
vented BY IHocratca. who came To
Athens with some cnrgocf Of corn and
gave an order un a town on the Euxine
where money was owing him, with re-
course on an Athonlan merchant. In tho
event that the order was not honorcd.
Cicero paid for the studies Of his son
nj Athens by an assignment from
creditor In Rome on his debtor In the
Greek city.
THE MODERN WAY.
The things exchanged between per-
sons In different countries comprise all
things OF value, such a. commodities
bought ana sold. debts thereby owing,
Interest. profits ~ capital invested
abroad. foreign loans and subsidies.
frcightH, banking and other commis-
nlonr. expenses ~ foreign travel, etc.
To transfer one ~ these values Tor am
other. piece of paper. bill of cx-
change, IL used. This II. IN effect. an
order from creditor To "A debtor to
pay a certain person n certain sum OF
money. This order may be sold to %
third person. II the drawer Will write
his name across the back OF II. thereby
becoming an indorfcr. similar papers
arr used In domestic exchange. The
whole system has IT. foundation In the
drawing " the creditor ON the debtor.
for In every country there are both
creditors and debtors OF other coun-
trlcai ana q person who owes money
10 another In foreign country may
buy n debt owed by some person In
that country 10 some person In his
avn country. and send the draft OF
this creditor rather than remit the
money 60 pay his debt.
Before the clearing house existed.
each banker had TO send a clerk TO tho
places Of business Of all the other bank
cra In London 10 collect the sums pay
able by them. for tho checks and bills
drawn ON those banks which he had
paid whom presented at his bank. Much
time was consumed by this practice.
and much money had 10 be taken from
one bank 10 another. only 10 be taken
back aRaln In a few days, ~ IN. ex-
changes varied. y. IL. PAVL.