Bon Bons, Bourbon and Bon Mots: Stories from the Algonquin Round Table
How to Understand International Financeby Robert BenchleyIt is high time that someone came out with a clear statement of the international financial situation. For weeks and weeks officials have been rushing about holding conferences and councils and having their pictures taken going up and down the steps of buildings. Then, after each conference, the newspapers have printed a lot of figures showing the latest returns on how much Germany owes the bank. And none of it means anything.Now there is a certain principle which has to be followed in all financial discussions involving sums over one hundred dollars. There is probably not more than one hundred dollars in actual cash in circulation today. That is, if you were to call in all the bills and silver and gold in the country at noon tomorrow and pile them up on the table, you would find that you had just about one hundred dollars, with perhaps several Canadian pennies and a few peppermint life-savers. All the rest of the money you hear about doesn't exist. It is conversation-money. When you hear of a transaction involving $50,000,000, it means that one firm wrote "50,000,000" on a piece of paper and gave it to another firm, and the other firm took it home and said "Look, Momma, I got $50,000,000!" But when Momma asked for a dollar and a quarter out of it to pay the man who washed the windows, the answer probably was that the firm hadn't got more than seventy cents in cash.This is the principle of finance. So long as you can pronounce any number above a thousand, you have got that much money. You can't work this scheme with the shoe-store man or the restaurant-owner, but it goes big on Wall Street or in international financial circles.