The Washington herald., 1907-12-17
THE STOCK OF MONEY
BY FREDERIC J. HASKIN.

]
/ United States to-day amount TO about
thirteen billion dollars. The total amount
OF actual money in the United States, out
side OF the national Treasury. amounts to
about three billion dollars. Furthermore,
the loans and discounts of the banks OF
the United States amount TO about eleven
billion dollars. A wonderful tale OF the
Industry OF the dollar do these figures
tell. They show that every dollar OF the
bank deposits Of the United States has to
do the work Of four men at once. and. in
fact, when it is considered that S,7Oo,-
Oco'clD Of our money never gets into the
banks, il viii be seen that the dollars
that are deposited have even harder tasks
than these figures would indicate.
They mean that the average dollar Of
money in circulation is to the credit OF et
least four people in the banks Of the
United States, and has been borrowed by
four people from the banks They mean
that the cash business Of the country is
more than four times as large as the
stock OF money in circulation. and that
the banks. by taking in the peoples mon
ey. lending IL out, taking it in again. ard
relending it, have been able TO keep the
wheels of industry running Probably
a more striking way to show how money
Is made TO bear many burdens at the
same time would be to say that while ;he
per capita circulation IN the United States
is SAL. the per capita bank deposit is
approximately $50. From these figures il
viii be seen that the bank becomes a
place where one gets ample security for
his money while from three 70 four other
people are making use of it.
The latest available figures place the
stock Of money Of the whole world at Sl3.-
2l5, 4000OO. or just about as much as is de-
posted I'm all the banks Of the United
States. In other words. II every depositor
in the banks OF the United States were
10 withdraw his money it would take
every cent the ertire world possesses to
pay them. Nearly One-half of the money
In the world is gold. TIE other half is
divided about evenly between silver and
uncovered paper currency The United
States fslds approximately two-ninths
of all the gold in the world. more than
one-fifth of all the silver, and one-sixth
OF all the uncovered paper.
A good deal has been heard in recent
times about boarding money. Bankers
and individuals have been charged with
and gold and their substitutes. but they
are not the only hoarders in the country.
Uncle Sam is something Of a hoarder
himself, and holds a good deal more than
a quarter OF a billion dollars in the
Treasury at all times. The actual stock
OF money in the banks Of the country
is just little more than billion dollars.
or just about one-thirteenth OF what the
deposits are. The money passing from
hand to hand and being boarded outside
Of the banks amounts to approximately
one and three-quarter billion dollars
Some idea Of the growth of banking
in the United States may be had from
figures Of deposits in recent years. In
1896 the total bank deposits in the United
States amounted TO less than 5000. 600 600.
as compared with s13. .O00OcO to-day.
State banks had deposits aggregating less
than $70o.0O0.O00 Their deposits have in
creased more than $1,000 0O0,000 since then.
just about quadrupllng their deposits in
a single decade. The savings banks then
had 81 ,9S5. 100000 in deposits. as compared
with 1928. 0OO at the date Of the latest
figures. Private banks had deposits of
So0OOOOOO in 1896. as compared with SlO9-
100000 now. The loan and trust companies
then had half billion dollars. and now
have more than two billions in deposits.
The national banks then had deposits
aggregating a little more than a billion
and half. as compared with more than
four billion to-day.
The growth Of banking In the various.
sections Of the country forms an inter-
esting study as showing their respective
financial development. The Southern
States in the last ten years have sur