Show y cause bause of Th the strain eStrain 1 the business of a civilized country like ours is ilot not transacted with coin but with credit had coin been the real medwin medium of exchange c thero there could have been no stringency since since there is as much coin in the country now as before more indeed than in tiny pr previous vi ous period of our history nine tenths of the business of the iho country we nia may y fai fairly ra v estimate is dono done with ui credits it is an exchange of credit rathor rather than an exchange of coin or cash that does the financial work it is credit not coin J that has suddenly disappeared it lias has bc been eai well explained that if a man dian deposits 1000 gold in ill a 1 I bunk recognized as solvent that i ay iy a credit available forthwith lie may inay draw liis his check and send it anywhere and it will pay debt it may pass th through ro ug 11 a dozen hands before it reaches rea clies the hank bank in each case paying debt just fig as the coin would pay i it t and if the person who finally receive sit happens to dt do posit in the same bank it lias has not stirred from the vault the final result of the checks journey is that thai the credit has been beell transferred to another depositor in the same saine batik bank and is ready to start on another journey when a pot poison son sells a carload of alier merchandise dibe and makes a draft on oil the purchaser which ch will be paid 60 days later lie he may deposit the draft it a credit two months hence the 1 11 e bank buys this credit milking making it at once available to the de who draws check against it these theme checks I 1 ad act ul once as money B but ut if tile the ban bunks ks buy too loo many of these cre credits dite they may not have ellve cash en enough 0 ugh on oil hand to 10 pay t them As this fact bec becomes onies known know 11 r suspected d the people ina may 13 rush to to tile the b banks anks for their ilion money ly and the hanks banks may not be able while perfectly solvent ws sib to actual owl owning I 1 ng t to 0 pay ill III I nolley money is as deni demanded the ille banks then seek to find people wh ho 0 have credits immediately ava available II 11 who are willing to exchange them for credits haai available lable in ill the future e they can do it but it lakes time ai and I 1 1 I I 1 th ili ready money nien men wil want 11 t their I 1 price that they tire are geL gelling it its i evident by the very low price of 01 securities recognized as v ry valuable the Govern government men t lias 1118 helped by depositing ti I 1 g III all ohp Trela treasury sury balance and is I 1 now i I 1 ON raising more on its own credit for which we shall be taxed to pay interest most of which it will deposit in the bank banks a and nearly kehrly all of winch which besides will be used as security for new fiew currency the local banks now allow have all the coin they 4 require 1 if they were sure that diat new york i ork could yet pay coin coil on ill all new d drafts ra ats against merchandise As soon as they are sure of that tile the clearing house c certificates will be called in ill and cash payments en ts will be resumed deseret deserea news newe |