The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-11

commerce is a very low estimate. 1t is
based upon the yearly value or our prod
ucts and EXCHANGES in larger transactions
1t does not include our countless small
transactions. II does not include the flood
of commercial paper not available for sta
tistics which cannot generally be traced
Were all of these included ii is likely that
: fair estimate of business transac-
lions with another would not be FAR
from forty billions Of dollars year. or
sixteen times the amount of all the money
there is in the United States. This ex-
cludes the incalculable volume OF CONNER
cial paper in renewals and exchange for
other commercial paper, which might prop
erly be included and which f/included
would swell the total OF our internal bust
ness transactions into hundreds of bill
lions, or hundreds or times the total
amount of our own money. And yet
have more money in proportion TO our pop
ulation than any nation on the globe ex-
cept France, and with better facilities for
its distribution. If. to these billions of dol
lars or our dealings among ourselves we
add our immense foreign commerce, the
deductions to be drawn from the ratio of
the amount Of Our business to the amount
of money is emphasized.
These figures show that the greater part
Of our business Is not transacted with
money. Actual currency is used only in
small transactions and to discharge bal
anceS. Not only is business not trans
acted with actual money, but il could not
possibly be transacted with actual money.
II We were to increase our money 100 per
cent. We should still do a volume of busi-
ness elSnC or nine times greater than our
increased volume of money. And yet the
widest indationist would not propose to
increase the money of the country 100 per
cent Moreover. II to the volume of our
money of England, France, Germany and
Russia it would not suffice to transact
two-thirds of our internal trading alone
for single year.
MAINTENANCE OF CREDIT.
"As everybody knows, business is con-
Of ~
credit and business is impaired, no matter
how much money you have. Sustain credit
and business thrives in spite of the COM
paratively small amount of actual cash in
the Nation. So we see that the mainte-
nance of credit is the one great financial
question and always must be. And credit
is only another name for confidence. So
the real question is: What will continue
the confidence that prevails throughout our
business world and what will impair that
confidence. Anything which will impair
confidence is bad thing, and anything
which will continue confidence Is good
thing
Coincidence is preserved by reasonably
permanent adjustment of business to any
given lines of financial and commercial
policy more than by all other things put
together. / do not mean that there should
not be gradual changes In all of our laws
those laws here and there become out of
date. But / do mean that 1T is better for
business to steadily adhere to some settled
line OF policy than to suddenly and radi-
| cally change 1t. Our whole financial and
| industrial legislation should be steady and
| not spasmodic. 1t should be gradually pro-
| gressive instead Of alternately impulsive on
| one hand and reactionary on the other
| hand. Even If We had a very poor none
| tary system, to which nevertheless the bus
| mess of the country had become firmly ad-
| justed and under which confidence in the
business world was high and healthy, it
would be better for the business of the
country to continue that imperfect system
than to suddenly replace it by the most
| perfect system which the mind OF man
| could devise. Because if some such sweep
| ter how perfect system that change would
| bring about, the bankers and business men
| of the country would sit tight for year
/ or two years TO see how il was going to
work. That would mean that the whole
| machinery of our business which is run
ming on credit, would slow down almost to
| the stopping point during this period of
waiting. 1t would mean the temporary de-
| struction of confidence. and, therefore, the
/ temporary abandonment OF our prosperity.
| The bankers and business men OF the coun-
| try would await the results of any sweep
| ing, radical, far-reaching financial legisla-
| ton in obedience to a law which no Con-
gress or administration can controi-the
| law of individual prudence.
Men are willing to risk their fortunes in
| waters which they have sounded and whose
channels they know, even though here and
| there there is a rock of danger; but they
are not willing to venture into unknown
seas, no matter how navigable, until they
find by careful excursions and cautious
| soundings that those unknown waters are
| safe. The crafts OF business sail fearlessly
in regions with which they have had expe-
rience and which have been carefully
| charted but they will keep to port until
| unfamiliar regions have been cautiously ex-
| plored and carefully mapped out.
AMERICAN BROTHERHOOD.
Confidence is also maintained by the be-
lief that everybody in the country is work.
| ing for the common good. The most for
tunate development in American history is
| the spread of this conviction of common
American brotherhood and the correspond
| ing decrease of prejudice among ourselves.
OF this the relations of the people to the
bankers are the most conspicuous illustra-
tons. 1t has not been many years since
| selfish politicians attempted with some sue
cess to make the people believe that the
bankers were their natural enemies. 1t was
said and blieved by many. that the bankers
business was to despoil the people. 1t was
! said and believed by many that 1t was the
| bankers interest to rob the people of their
| prosperity. 1t was said and believed by
| many that the prosperity Of the bankers
meant the poverty of the people.
But this period of folly has passed. No
one but the crude demagogue now makes
| assertions SO aDSuru Everybody unuer-
stands to-day that the prosperity of the
people and of the banker is inseparable.
| Everybody knows to-day that the bank can
| not make any money except when the peo-
pie are making money. Everybody knows
| to-day that the banker has no source of
| income except interest on loans and charges
| for exchange. And when times hard
| the banks make fewer loans and have
| fewer exchanges and therefore smaller in
| comes When times are good loans are
| numerous and exchange rapid and abun-
| dant, and, therefore, the banks income is
| enlarged. When times are hard, the peo-
pie are not prosperous and interest is high
| because loans are few; and yet notwith-
| standing the increased rates of interest In
hard times the banker makes less money
| because he makes so many fewer loans
| When times are good, interest is lower and
| yet the banker makes more money on this
lower rate of interest because he makes sc
| many more loans
| 1T is now we'll understood that the farm
| er. the laborer, the Store keeper, the man
| ufacturer and the banker are a. great part
| nership whose interests are not only sim.
liar but whose interests are one and the
same. The prosperity of the banker store.
keeper, workingman. farmer, manufacturer
| and all men Of legitimate occupations stand
| or fall together. So that any man who
| wishes to continue his prosperity must SCI
| his face against any agitator who attempts
| to influence the people against the banker
the laboring man against the employer, the
| consumer against the manufacturer, or the
| reverse of any of these.
BUT ONE CLASS.
81 do not think our country has any ser
ious dangers in it's future. but if it has on,
that one is the possibility of the creation
of sapa ra 70 ri xSaS in tho Rapuhlic apI m.