The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-07-19
What Banks Do.


Will so declare on election day.
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What Banks Do.
The statement was recently made by
one OF our weekly exchanges that some
farmers take the position that banks
rather hurt tho farmer than help him, by
withdrawing money from circulation"
Az first sight 1t Is Uncomfortable that any
Intelligent man should take this position.
But the explanation Is simple. Persons
who are not familiar with the practical
operation Of banks have the idea that q
bank Is a vault In which money is locked
up for safe-keeping,&an and that when q
sum OF money Is deposited In bank, 1t Is
put away in strong box and kept thore
until the depositor checks 1t out. It Is
no wonder that people who take that
view should contend that banks withdraw
money from the circulation.
In point, Of fact, the reverse Of this
proposition is true. A bank is a medium
Of exchange q clearing house, through
which money Is collected in small sums
and put into active circulation. The way
to keep1noney out Of circulation is for
the owner to hide 1t away in his own
house. Any sum Of money which Is
wrapped up in q napkin and put in q hid
so farSas any good that 1t does might as
we'll be destroyed. If q a dozen farmers
in any community cache having a hun
tdred dollars.a4 Keep their money at home
they take twelve hundred dollars from the
circulation. and the volume OF circulating
currency Is reduced to that extent. But
II these farmers will take their money to
bank and deposit It, it will not DO long
before that sum will get into active cir
fculatlon, for it is the business Of the
bank to lend money, not to hoard it.
OF course, the bank must keep some OF
Its money on deposit, and must be ready
to meet any demands that are made upon
1t. But most Of the money which 1t re-
ceives from those who do, not need 1t in
their bushes Is loaned out to those who
do. and IN this way money IS taken out
OF its hiding place and put into the
activities Of trade. Therefore, every per-
son who deposits his money in bank In
creases the circulating medium to that:
extent contributes to the Industrial and
commercial welfare OF the country, and
Indirectly shares in the general benefit.
55
The stocks Of Southern railroads have
had a considerable advance lately and
no wonder. The cotton crop is said to
be in prime condition, and if no acci-i
dent befall. the yield will be very large.
With another good cotton crop with any
thing like present prices, the South will
be rolling In wealth.
W. ---=--==--=ty
When business gets dull for the Dan
Vile spell-binders, they get UP a ne-
mortal day service for practice.
Now is the accepted time for the de-
layed summer outer to proceed 10 out.
$500 rs =-E--I--eI=-E-
The sound OF the pick and the saw and
the hammer about the venerable old Cap
itol will wake up some memories that
may give the Oldest inhabitant another
inning.
Weather conditions and the butchers.
strike combine 70 make this q mighty
convenient time to demonstrate the
orthodoxy Of the vegetarian doctrine.
The very first thing We know the
welkin is going to commence to ring.
The spell binders are not shucking off
their coats for nothing. III
North Carolina is sufficiently inter-
ested in the presidential campaign. but
II Is not forgetting about It's business to
elect a Governor.
This newly discovered anti-toxin, guar,
antee to, cure has, fever at home, is
calculated Ito abrea krmany as5well laid
plan for a summer outing. Z.
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