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State alone should issue notes; and that all bankers ought to have the right to obtain the notes they require, by depositing with the Government national or other securities of the full value of the same; every note to be stamped when issued in proportion to its value; and that notes should be issued for £1, £2, £3, £4, as well as for £5, &c., as at present.

Paper money is one of the most extraordinary inventions of civilization; by it credit was possible. I do not mean the power to purchase, for that exists whenever man has confidence in his fellows, but a paper money that had the power of effecting payment without the real money. A bank note circulates and operates with full power over labour and goods as if it were the gold it represents; yet that gold has disappeared. The origin of paper money is described by Adam Smith in his account of the Bank of Amsterdam. When any one placed gold and silver in the bank, the bank would pay the amount as he ordered. He could thus transfer his right over the bullion to another, and the mere right came to be accepted as equal to the reality. Sometimes bank receipts were given for the deposits, and the transferable bullion receipt was the parent of the bank note. It was a mere piece of paper, but it conferred a legal right, which was not exercised, because, while gold awaited it, it served every purpose that the gold could serve, and was more convenient. Now and then a little was wanted for special purposes, but the bulk of it was invisible, for no eye had penetrated beneath the surface. At length the thought occurs that, if honesty would permit it, this bullion may as well be made use of, or that proportion of it not likely to be asked for; and the next step was to lend it out on good security, so that if the owners do ask for it, the securities can be realized. So part of the stock of bullion was lent, and for the first time there is not gold enough in the vaults to pay all the bullion receipts that are in use, but suflicient to pay all that are likely to be presented; and we have in operation paper money, in the shape of bullion receipts, and also part of the gold the paper money represents. The new power ceases to be what its origin indicated-a representative of bullion. From the moment "paper" representing gold, and part of the gold so represented, were both in use at the same time, paper money ceased to be a representative of bullion, and has not been that representative ever since; now less than ever, for our stock bears but an infinitesimal proportion to our paper. Gold is only the "measure of value," the standard by which changes are effected. Our paper, however, is a representative of real value, of securities valued by the gold standard. The community is served, and not injured, by having the use of the dormant hoards hidden in the vaults of the Bank; and the nation

has as currency the paper and the gold together, both alike having the force of money. This is the present position of the Bank of England. So many millions sterling are, as it were, taken out of the bottom of the hoards and replaced by Government securities, the Bank being still liable to pay, as if every note had still the gold behind it; but the severance of the two is really complete. This was the origin of paper money, and the first stratum of credit being thus formed, it was a clear addition to the previous aggregate of paying power, and other layers have been successively superimposed upon it, in the shape of bonds, bills, cheques, &c., with the consent of society, to meet the requirements of national and commercial development. The most valuable paper money of all is the cheque; by its aid nearly all the cash accounts of the kingdom are paid. Such cheques are not paid, owing to that valuable institution, the "Clearing House." The cheques are transferred in bulk from the one banker to the other, a cheque being given for the difference; the operation is complete by debiting the drawer's account and crediting the payer in's account in the bankers' books. We have here a great improvement upon the old system, when a cheque was always presented for money. This simple book credit is, however, a new form of the money power. A cheque is an equivalent for gold and notes, but much more preferable, as it pays without weighing or counting, or dangers of loss; it is a sign of faith, it is the symbol of civilization, it is a credit to man's intelligence, it is equal to any extension of commerce, as by its aid, in conjunction with the Clearing House, all settlements, irrespective of amount, can be effected, and with the same facility and rapidity.

It will do us all good to understand money better, and talk about it more than we are in the habit of doing. It is the key to a man's character how he talks of money. Most people treat money as if it were a sin to mention it; it is a subject rarely talked about in society, or they hug it to themselves as a bosom friend. It needs a wellbalanced brain to understand and treat money at its real value, and you can detect the weakness or strength of a man by the way he talks about money. Some will speak of it as if happiness consisted in possessing it; whereas happiness is not in the money, but how the man will use it. The secret of happiness is to look things in the face, to resolve to do your best and endure the worst, to realize that "all is not lost when much is lost." The happy man is he who grasps the idea that the struggle of making life contented is always to make the best of things that might be worse; to such souls "there are spring days in winter."


"Money is a power whose sway

Angel forms adore,
And the lost obey,

Weeping evermore."

"MONEY is the expression of wealth, the voucher of accumulated gains, a 'universal language' of property all over the civilized world. It is an open sesame which everywhere admits us into the enjoyment of other men's goods or labour. Unlike houses, or horses, or hounds, or food and clothing, or works of art, or articles of merchandise, money is of no use in itself-only as a means of getting other things. To borrow the language of the schoolmen, the value of money is in posse, that of other articles in esse: the one is potential, the other is essential. Money is a useless thing for ever doing useful things a valueless thing for ever purchasing things of value. Like the electric fluid, money is undynamic when at rest: it is only when in motion, passing in payment from one owner to another, that its great power is manifested. But that power, we repeat, is merely imputed to it in order to facilitate the business of life; and if all the world could act together as easily as a single community can, we might say of every form of money, A breath can make it, as a breath has made'" ("Economy of Capital").

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Money is said to be the "root of all evil;" if so, it is because men do not understand what "money" really is. "The greatest sham of our age is the public depreciation of the god we all really worship." It is not that we cannot worship God and Mammon, but that we, in our ignorance, sacrifice the true God in our blind worship of the false god, by taking the shadow for the substance, and worshipping the symbol of wealth, by allowing £ s. d. to override every other consideration. Thus money is a cause of much evil under the existing state of things, because men, in their eager desire to get it, lose their self-respect, by deviating from truth and rectitude,-make life a perfect slavery, with its unbroken monotony of drudgery and cheerless gloom. Whereas, if we understand the world better, more especially know our profession or business, or can do our work, whatever it may be, well and thoroughly, there is no reason why we should not go through

our daily life and perform its duties as blithe and light-hearted as though it were a blessed gift to live-instead of as now, when with the majority life is simply endured, as if we were heirs to nothing but the manifold ills of life, the majority of us feeling

"Nor art nor nature's hand can ease my grief;
Nothing but death-the sufferer's last relief;
Then farewell youth, and all the joys that dwell
With youth and life; and life itself farewell."


What is money? "A simple invention it was," says Mr. Carlyle, "in the old world grazier, sick of lugging his slow ox about the country till he got it bartered for corn or oil, to take a piece of leather, and thereon scratch or stamp the mere figure of an ox, pecus, put it in his pocket, and call it pecunia, money. Yet hereby did barter grow sale; the leather money is now golden and paper, and all miracles have been out-miracled for there are Rothschilds and English national debts; and whoso has sixpence is sovereign, to the length of sixpence, over all men; can command cooks to feed him, philosophers to teach him, kings to mount guard over him, to the length of sixpence." If money be "the sinews of war," it is that because, in a much more real sense, it is the sinews of trade. Money is metal coined for the purposes of commerce, and is usually stamped with the name and arms of the king or ruler of the state that directs it to pass current. In a more enlarged sense, money means any representation of property, whether as coin or in the form of paper; the circulating medium now means any currency usually and lawfully employed in buying and selling as the equivalent of money, as bills of exchange, bank notes, cheques. Money was originally stamped coin, and afterwards anything that generally takes its place in buying and selling. Cash was originally coin kept in hand for immediate use; and hence cash payments are strictly payments in coin, though bank notes and cheques are ordinarily received in such cases because of the public faith that they can always be cashed at the bank. Money in political economy is any representative of wealth, whether metallic or paper, issued by Government and sustained by their credit. Commercially, bills of exchange are very powerful as monetary agents. Mr. Macleod tells us that "money is a representative of debt, a right or title to demand something from some one else," and that "the special and particular purpose of money is to represent the debts that arise from the unequal exchanges of men." Debts are deferred payments; whether money is given at once, or the goods are taken away upon a covenant to pay for them a month later, the nature of the exchange remains the same. No new element is introduced; the exchange is simply not completed at the time. But

the debt is not money. By means of bills the tradesman can sell his claims to his banker, who will lend him the money and receive from the purchaser the money when due. But it is a great error to call a debt money-that is, wealth. Debts are not wealth, but simply an acknowledgment by A that he has received property of the value thereof from B, and that he will pay the money at a specified time. In large transactions debts are settled by cheques and bills of exchange. A bill of exchange purports to be an acknowledgment by B that he owes A a certain sum of money for value received, the bill being payable to A or his order. By endorsing the same he transfers his right to receive from B a certain sum, at a time specified, to C, on condition that C gives him the money at once, less interest for the time to run. Bills of exchange are very useful as remittances between different countries, and for adjusting the commercial debts which may be mutually due and owing by other parties, besides those whose names may appear on the bills as drawers and acceptors. Bills are purchased by those who have to make remittances to places on which they are drawn of parties by whom they are drawn; and the trade of purchasing and selling bills forms an important branch of monetary business, conducted by persons who are termed exchange brokers. The value of the bills when offered for sale depends not only on the actual amount for which they are drawn, but also on the conditions of the market as regards the demand and supply. If there are plenty of bills offered in any particular city, the price falls, and when they are scarce it rises. The fluctuations in prices are made public twice a week in London by what is termed the "Course of Exchange," being a list of the chief cities on which bills are drawn, and it shows the rate of exchange, or the premium, or discount, on bills in the places specified. Bills of exchange are very useful, and relieve the mind immensely. A merchant with heavy payments would never be able to bear the strain were it not for the knowledge that he holds in reserve an amount of paper money that in case of need his bankers will pass to the credit of his account, at the rate of interest current at the time, according to his position. Good bills may always be discounted. The facilities for converting bills into cash have caused at all times a large amount of what are called "accommodation bills." In reality such bills are a fraud, and the drawer and acceptor of all such fictitious documents ought to be punished for obtaining money under false pretences. Their origin arose as follows: A trader unable to meet his liabilities, yet in good credit with his banker, gets a friend, customer, or employé to accept a bill or bills, and pays the same into his banker's with other good bills, upon the assumption that they are all bonâ fide trade bills, received by the merchant from his customers

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