The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-17

MILWAUKEE, Wis, Oct 16.-Presi-
dent Trowbridge, of the American Bank
crs' association, opened the second day s
convention by Introducing the Rev
Charles s. Lester, of Milwaukee, who de-
livered the prayer. The convention i'm
Tnediat..ly got down to business by re-
ceiving statements upon the call of states
by bankers from various sections of the
country, who reported in minute
speeches the general condition of busi-
ness. The general trend of the state
ments showed that business was in
thoroughly satisfactory condition.
Following the cali of states came
discussion on practical banking cues
1ions.
a. B. SticlIney, president of the Chi
cago~ Great Western Railway company,
was then introduced and read an inter-
esting paper on The Medium of Ex-
change and she Banking Function
President Stickney's paper in full was
as follows;
Mr.. Motley in q preface to his admirable
history says, in effect, that before any
man should address an audience on an
important subject he should make it clear
py what right he ventures to discuss the
subject According to this rule, it be-
comes my duty to show by what right
l address an audience of experienced
bankers upon the subject of THE Meuium
VI 40ACilduSS ana the banking
1 speak, gentlemen, by the right of
investigation, as well as a long and varied
experience in the banking business. 1t
may surprise you when / say that 1
nave been actively engaged for nearly
a quarter of century in the banking
business in many of the principal cities
of this country. The difference between
YOUR experience and my experience is
that your experience has been on the in
side while mine has been on the outside
OF the bank counter
There are, two. points of view; but the
1undamentaI principles of the function
of the bank must be studied from a
broader point of view than the expert
ence OF any one person, be he customer
or banker. The modern commercial bank
has been evolved from the experiments
and experiences of more than two hun
dred years, and he who would have a
clear conception of its possibilities must
add to his own experience a knowledge
of the history of its evolution.
IN preparing my address l have aVailed
mysef of the history Of banking by
standard authorities.
The medium of exchange is an essential
part OF commerce as distinguished from
barter. The necessity of a medium of
exchange grows out of the fact which
cannot be too often repeated because so
often overlooked, that the ultimate pur-
pose OF all commerce iS--to use the UNIQUE
ana rather satisfactory expression of the
present secretary of the treasury-''to ex-
change things for things When
fittings are exchanged for money the
process IS only half done. Whatever COM
modify is willingly accepted to represent
things during the process of the sus-
pended exchange, is a medium of ex-
change.
The usual statement that money is the
= medium of exchange is but a small frac-
fIon of. the fact The word money has
a definite meaning, and in the late "cam-
paignrof education" the subject of mon
ey was SO much explained Chiefly by
people who had no comprehension of it's
meanlng), that it would seem like vast
ing time to consider its meaning were
1t not patent fGct that the word is SO
constantly MISUSE
In common parlance the word money
Is synonymous with wealth and capital
1t is said of certain men that they have
f'slotS OF money meaning that they
possess great wealth; again. that certain
merchants have large amounts of
money meaning that they have large
capital while the fact is that rich men
and great merchants have very little
money. 1t is probably no exaggera ton
TO say that the average poor man pos
sesses. more money than the average
rich man.
But it may be said that this is a mere
play upon words-that the rich men do moi
carry their money in their pockets
but nave money on deposit in banEs.
This proposition presents another popular.
misuse of the word money. No man has