The Boise citizen. (Boise, Idaho) 1906-1910, 1908-06-30
DEFINITION OF TERMS
C0MPLETE EXPLANATORY REVIEW OF FINANCIAL
system OF united STATES


as well as to get little light Of the mysterious
nbaes of the money panic, it will be well to start
at the very of things says the Northwest Financial
GOLD COINS are legal tender for all debts public
or private that is you pay debt in gold and no
one can refuse your coins They must take them take
SILVER DOLLARS are also legal tender for debts
but only the silver dollars All other silver coins legal
tender to the of ten dollars only that creditor
could refuse accept payment of debt for eleven dollars
or over if you offered it him in half-dolars quarter
dollars or Dimes
Nickels are legal tender for twenty-five cents only;
so also is the bronze cent
The sGREENBACK' is note issued by the United
States Government and legal tender for all debts both
public or private except duties exports The Green
back redeenable gold demand by the United States
GOLD CERTIFICATES These are simply receipts
for gold The bearer surrenderng such certificate
entitled to receive gold for it.
SILVER CERTIFICATES These are legal tender
for customs taxes and all public dues They are not
legal tender between individuals but only between nd
TREASURY NOTES-These are legal tender for
all debts public and private, except when otherwise eA
pressy stated in the contract They may be counted
as part of the lawful reserves OF banks.
NATIONAL BANK NOTES-These are legal tender
between banks but cannot be rendered an individual as
legal tender by bank But national bank must accept
from individual any national bank note ne cares TO
LAWFUL MONEY is gold and silver coin Or gold
and silver certificates and legal tender notes OF the Oed
BANK RESERVES must be kept in lawful money
NATIONAL BANK NOTES are not lawful money
and cannot form part of the reserve
The banks in the larger cities are required 70 heeP
twenty-five per cent of their deposits on hand IN lawful
money" This is called the reserve
As their deposits increase their reserve must IcIes
and as their DEPOSITS diminish their may DIMINISH
The reserve legally must never be less than t"eNy
five per cent of deposits 174a~
The law is not too literally enforced however OndeI
it the comptroller NAV notify any deficient bank to MAKE
good its reserve within thirty days and faS 70 10 ~
close its doors ,
The screws are put on deficient bank, however
by forbdding it to make any loans or discounts OF pay
any dividendes till its balance is restored :~r now
This is the same preventing man ncq11n q ar rJw
liabilities till his old debts are discharged 1l0 d ~
with reserves below the minimum are Pactaly Ino
from doing their most profitable business |: e. i''ls
loans and discounts till their reserve IS agall lsao
Banks naturally do not like to go below lile li m I+
required Their profits stop and the shadow at leaS'
OF recevership, looms up . debated to-
wards the danger point the banks get uneasy anu
anxiety is shared by the business community loans
the banks cannot discount ther bills or maze 'i0"
even when the security is gilt edgeo, A whole coun-
Low reserves are a danger slgnai ~ @
In times of panic depositors call Tor money +b.+
Two dangers threaten this point VLe ne ~ I hanks
the demand for currency may be SO gIeat I he willing
exhaust their notes even though Ll INIT they
take them National banks notes nave In' and the
may only be issued against government ~ liexbailstibe
available supply of government bonds Is no. the CON
may N facf he verl Quickly exhausted against Cle @
tinued demands of ninety million people not be ten
dere B4 tt tine ndipdss R15ss q against m their viii could
refuse them then the banks would 4ays seryes eo '
money thus heavily depicting Their Iel 2 be banks their
own notes ns sseGpd beg daisr Exhausted viii to use 6e
holdings money which By lay IS evident len that the
that may form their legal reserve - - z 1nv with the
law and # fed out to the public their position nssn S o the
weaker At this point demand Is 81 SUI Frope and bid
banks forced go to the marke'S =
for gold. c,,rities or their
American securities in foreign markets anu =