« PreviousContinue »
8. But on the hill the golden rod,
And the aster in the wood,
In autumn beauty stood, —
9. Till fell the frost from the clear, cold heaven,
As falls the plague on men;
From upland, glade, and glen.
10. And now, when comes the calm, mild day, –
As still such days will come,
From out their winter home,
11. When the sound of dropping nuts is heard,
Though all the trees are still,
The waters of the rill,
12. The south wind searches for the flowers
Whose fragrance late he bore,
And by the streams no more.
13. And then I think of one who, in
Her youthful beauty died,
And faded by my side.
14. In the cold, moist earth we laid her
When the forest cast the leaf;
Should have a life so brief.
15. Yet not unmeet it was, that one,
Like that young friend of ours,
Should perish with the flowers.
PAPER MONEY AND EXCHANGE.
1. A young lad, named Marco Paul, was permitted by his father to visit Boston, in company with a gentleman by the name of Forester. Passing through State Street one day, Marco observed large buildings ornamented with porticoes and col
The signs over the doors were chiefly names of banks and insurance offices. He said to his friend, “What kind of business is done here?”
2. “ Several kinds," said Forester; “ though it may be said, in general, that nearly all the immense dealings which take place in this street, are in one single article."
3. 6 What is that?” asked Marco. “ Obligations," said Forester. .
“I dont know what you mean by obligations," said Marco.
4. “ Obligations to pay money,” replied Forester. “ In small transactions, the obligations which one
comes under to pay money to another, are usually settled privately between the parties; but in large transactions, it is not so. The obligations in these great transactions are usually put in such a form, that they can be bought, sold, or exchanged.
5. 6 The banks and offices in State Street constitute the place, where all these obligations centre, to be paid or balanced one against the other. So that State Street may be considered as the general counting room of the city.
6. “ If a Boston merchant gives another one his written promise to pay him a thousand dollars in three inonths, the paper goes, perhaps, from hand to hand, till it has performed a considerable circuit; but the merchant who gave it, is pretty sure to find it, at the end of the three months, in State Street.
7. “ If a man wants to lend a thousand dollars, he
goes into State Street, and there he finds some one who wants to borrow. If he wishes to borrow a thousand dollars, he goes into State Street, and there he finds some one who wants to lend.
8. “ If he has any money which he wants to keep safe, he sends it to a bank in State Street; and if he wants to pay any money, he sends the person who is to receive it to State Street, with a written order to the bank that keeps his money, to pay it to him."
“ Then there must be a great deal of money in State Street," said Marco.
9. “ Yes," replied Forester, “but not so much as might be supposed, judging from the immense magnitude of the money transactions which take place here every day, - for a very large part of the debts of the merchants is balanced by setting off one against the other. So that there is, after all, not so much money in State Street, as one might suppose; and what money there is, is very seldom used.”
10. “ Why, Forester!” exclaimed Marco, much surprised to hear such a statement as that.
11. “ I will explain to you,” said Forester, “how receipts and payments are made, without money, through the banks and other institutions of State Street. Suppose a merchant wants to buy a hunJred barrels of beef, to send away for sale. Now, we will suppose that he has no money, but he has an obligation which another merchant, an importer, has given him, to pay a thousand dollars in four months.
12. “ This was given him, we will suppose, on account of some merchandise which he has just sold the importer, to be sent to some foreign country. He carries the obligation to a bank in State Street, and asks them to exchange their obligation for it. They do so, deducting something as their compensation."
13. « How much?” said Marco.
66 And you
“Twenty dollars," said Forester. see the merchant has got the obligation of the bank, instead of the obligation of the importer. The obligation of the bank is a great deal better for his purposes."
14. “Why ?” asked Marco.
“Because," said Forester, “in the first place, though the importer, whose obligation he had at first, may be very rich, yet he is not likely to be known generally away from Boston. But the bank is a public institution which is known all over the country.
15. “ Now, the merchant wants to send into Vermont, perhaps, where a great many cattle are raised upon the green hills, to buy the beef there. Here the obligation of his brother merchant, the iraporter, would not be taken, because he would not be known, but the bank bills would be taken.
16. “ The obligations of the bank are better than the one of the importer, because this last was in one great sum, a thousand dollars, whereas the bank can give its obligation for small sums, — tens, fives, threes, and ones, - just as the merchant may think most convenient for purchasing cattle of the farmers."
17. “ Yes,” said Marco, “ that makes the bank bills a great deal better."
1. “And there is another reason still,” said Forester. “ The obligations of a bank are made payable on demand; that is, whenover any body calls for the money
. But the obligation of the importer was not payable until after four months. People are,
* Really one dollar more for the three days' grace.
of course, much more ready to take obligations payable on demand, because they know that they can have gold or silver for them, at any time they desire.
2. “ Thus, you see, here are three reasons, why the obligations given him by the bank are better for the merchant, than the one which he originally received of his brother merchant; the bank is better known, — the obligations are in smaller sums, - and they are made payable on demand.
3. “ For these reasons, the farmers in Vermont will take them readily in payment for their cattle, and the merchant is willing to pay the bank twenty dollars, to make the exchange.
4. “ Now, the merchant gives his money to his agent, and sends him .into Vermont to buy cattle ; and thus the nine hundred and eighty dollars of bank obligations, become scattered all
over Vermont. 5. “ You might, perhaps, think that these farmers would not like to take these promises of the bank, as they live so far away that they cannot conveniently go to the bank, with the bills, to call for the money, if they should want it.
6. “ But the truth is, farmers do not often want to use gold and silver. They only want something to pay what they owe to the traders in the country towns, where they buy their sugar and tea, and calicoes, and cloths, and such other articles as they cannot raise on their farms.
7. “ Now, as these traders are continually owing the Boston merchants for the tea, sugar, and other articles, which they buy in Boston, they prefer these bank obligations to silver and gold; for they can send them more conveniently to Boston, to pay their debts. All that the farmers want, is something which the storekeepers and traders will take.
8. “ Accordingly, all these bills, after passing through several hands, come at last into the traders' hands, and they keep them to pay their debts in