The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1907-11-29
Banks Versus Old sox.


Too much cannot be said in con-
demnalion of the practice of hoard
ing money, in leapots or safety
vaults, at this Or any other time. 1t
is sufficient, however, to say that the
man who attempts to be his own
cGly run the risk of being robbed
by burglars or losing his accumula-
ticn by a fire, but he is doing his lit
tie part towards making money
scarce in the land, with all the mani
TEST inc0nVenienceS and hardGh ins
OF such a condition. BY exercising
II wise discretion in the choice of a
bank, he can secure safety for his
savings, peace Of mind and have the
great satisfaction of feeling that he
is acting like a patriotic citizen. In
this connection it may not be amiss to
consider a few of the facts with re-
gard to banking in the United States,
as it affects the depositor and regu-
lates the amount of medium of en-
change.
If we take the treasury statement
of Nov. 1, 1907, and estimate the
gain in currency by gold importa-
tons since that date, we find that
the entire sum in circulation in this
country is probably about $2,925,-
900 900 That amount is outside the
vaults of the treasury and therefore
in use. In order to estimate the
amount held in the banks of the
country, the total deposits in national
state and savings banks and trust
companies, $13, 900, 900, 900, ma be
used as a basis. If the banks hold
10 per cent of their deposits in cash.
which is probably not far from the
true figure, there is $1,95O,O0O,O 900
locked up for protection of deposit
tors. Deducting that sum from the
estimated total, as stated above, it
appears that $1,000, 900. 900 in round
numbers is circulating in the pock-
cts of the people or about s12 for
every man, woman and child.
Everybody knows that, in ordinary
times, the average man, woman AMI
child does not carry around $12 in
change. Certain sums are in the
cash drawers of butchers, grocers and
other retail dealers and even Sc a
head is probably a high estimate.
The well known custom of a large
part of the population, of running
monthly accounts with retail store
keepers. so that the wage-earner's
pay is actually in his hands only a
short time, must be taken into con-
Iteration. Hence it is probable that
some economists are pretty nearly
right when they say that the treas
ury estimates of money in circula-
ton are guess-work and greatly ex-
aggregated.
Yet even if s12 a head be taken
for the money outside the United
States treasury and the banks, it is
easy to see how little boarding need
be done by the individual in order TO
make actual money disappear from
circulation. The man drawing $500
= month. who keeps that sum in his
own house, paying it out in driblets
fer household expenses, instead of
putting it into the bank and check
ing upon 1T as required, has with
drawn from circulation for the whole
nonth. the average between $500
and nothing or $50. That is the re-
rult Is hiding the cash, instead of
Pan rs the 500 a. The beginning
The month and settling his bills
fer rent, coal and many other items
out actually handling the cur
.tsEey again, simply transferring the
tito to yarious sums OF money.