The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1910-02-19
CHECK PLAYS
A BIG PART

~~~~~~~~>~~s~s~~>s~~~~~.~s~~~
report, the question whether some OF
the checks received were simply cashed
| for holders instead of actually paid for
goods. and what proportion of the
checks were on account instead of act
ual purchases. Doctor Kinley arrives
at the conclusion that the entire re-
tail payments of the country on Civ
en- day may be estimated at $55,974.-
| 121, and that of this amount S35, 3S.T49
may be considered to be in checks. Civ
ing a final proportion of checks in re-
tail payments of 81 per cent.
| In concise summary OF results and
conclusions. Dr.. Kinley says In part:
"A large proportion of the business
of the country. including the retail
| trade, is done by means of credit in
| struments. We are justified in
concluding that so or SO per cent Of
the retail trade of the country is set
| tied in this way. Over 80 per cent of
the wholesale trade IS done with checks
and other credit instruments.
1.-The use of checks is promoted in
a measure by the payment of wages in
checks. OF weekly pay rolls reported
by the banks. agyregating $134 500 O0o
for the week ending March Is. 1909, 10
per cent was in checks.
1.-The transaction of so large a vol
ume of our business by checks is an
element Of danger in times OF srrIn-
gency and crisis. In such times the I'M
Cancelled balances of credit transact lions
creates a larger demand for money
: but the habit of settling by check has
meantime kept the available amount of
! money at minimum.
consequently there ought to- be
currency when credit as a means of
payment diminishes. This currency
ought to be as safe and as uniform as
the ordinary currency, and it should be
capable of being quickly emitted and
recalled
THE large money circulate on of the
country is explained by the facts that
our prices and wages range high; that
our people probably carry a larger av
erage amount Of money on their per-
sons than do foreigners; that some por-
ton Of our currency has been destroyed
or lost or boarded land that some of
OUr money is abroad in the hands of
money brokers and others Finally. as
our business grows, the amount of
money needed as reserve to perform
this vast volume of business transac-
tons increases, too.
"The amount of money released by
our credit transa ctions is not equal
in amount to the volume of credit in
struments. but must at any time be
enough to settle the uncanceled bal
! ances called for in money from day to
day.
This. demand for reserve has an in
fiuence in determining the value of
money on general prices, just as mas
the demand for money for direct pay
ment.
1.-THE volume of credit transactions
very likely tends to increase as popu-
latien and business grow. It does not
increase uniformly. however but by
periodic movements. That IS to say, the
rate of increase of credit transactions
as compared with the whole volume Of
business, grows, as 1t were by jerks
and at a decreasing rate"
Doctor Kinley suggests the follow
ing questions as closely related to the
subject of this inquiry, and discusses
them at some length:
CD What is the amount of money
rendered unnecessary by the use of
credit paper? (2) What is the influence
of the vast volume Of credit transac-
tions On the value of money or the lev
e lof prices? CD Why is it that our
per capita circulation is so large and
where is the money in active circtlla-
ton? ca Does this discussion show
the need of more money for circulation,
or may We safely rely upon our method
of credit payments to meet the bust
ness needs of the country? 60 If more
money npo(Iad under what Conl;
lions can it be best supplied?
III EssYJ rTDTEc