Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-05

demand. 80 It IL tho circumstances ana
not the bank statements that produce good
or bad conditions and high or low prices
for securities.
Events in August and September.
August and September have been quite
remarkable periods Of late years for pro-
ducing events that would. In the absence
of substantial bases for values, be calculate
ed to bring disaster.
These events include: For 1898. the
Fashoda incident; for 1899. failures OF Mon
treaI banks outbreak OF yellow fever at the
Soldiers Home at Hampton and the pre-
monitory signs of the Boer war; for 19OO,
the Galveston disaster and poor prospects
for cotton; for 1901. corn crop percentage
Of 61.7 and the assassination OF president
Mckinley; for 1902, anarchy In the anthra-
cite coal regions, an unusually heavy de-
mand for crop-moving money and King Ed
ward Wis sickness.
The outlook at the present time may not
please everybody, but 1t contains none OF
much to do with the declines produced at
this season in other years. Railroad earn
ings generally are satisfactory and IN
number of particular cases something more
than that; the tide of labor trouble Is SUB
siding without having brought anything SO
dangerous and alarming as the coal strike
of last year: from all accounts industry
and trade are as active as ever, allowing
1Or q rev SpOl6 WU0I6 tuo ACAdeAOhS VA via
ployers and employed have not yet been
smoothed into full resumption OF operations
and, If anything, the agricultural demand
for immediate cash will be less than 1t was
of the banks which have to meet this de-
mand. is stronger than 1t was year ago,
both in present and contingent resources.
Waste" in Use Of Money.
A prominent fnancier here claims that
there is a great waste" in the use of
money He says that the chief function
Of money Is not that of circulation from
hand to hand. Its greatest function Is that
Of serving as the standard of value. 1t Is
the yardstick Of the markets. If we re-
turned to the ancient system Of barter.
say actual exchange Of oxen for grain'
that would be relapse into barbarlsm
Or, II we should abolish the banks, our
systems Of transfer of credit, our mechan-
ism of deposit currency, and insisted IN
every transaction upon payment In gold;
commerce in the modern sense OF the Woro
would be impossible. There would De 80
much waste Of time. labor and material IN
making payment for these things that the
volume of business would have to be I'M
mensely reduced.
1t has been a great boon to the world
that our system Of credit has been evolved
by which exchanges Of commodity are con-
Quoted on an immense scale all over the
world by a method of clearances or elimina-
tons of unnecessary payments, there being
no actual settlements in cash. except for
balances. Overtaxation. which results IN
the accumulation Of q large treasury bal
ance, is a wasteful use Of money. The
locking up of boards Of money in the treas
ury vaults II waste Any increase in bank
reserves beyond the point Of absolute
security is waste. Misery boards OF
money in safe deposit vaults are waste.
Every dollar that is not in use in cash pay
ments or as a reserve against credit is
waste. Every dollar which is not placed
where 1t can do the largest possible service
is waste. Every loan made upon indtgest-
ible securities is waste.
What Is needed is more intelligent use OF
the money we have. not more money. What
we need is the abolition Of laws that pre-
vent the freer use of money and that keep
large sums Of 1t in idleness. Bank checks
are being used to a larger extent this
year than ever before in moving the crops
In the west. which is very hopeful sign.