Note 50 — Chapter XVII

This sum represents more than ten times the amount of gold coin now in existence. Less than five per cent. of the business of the great industrial centres is a cash business. Even if the money existed, the transfer of such immense sums would greatly retard commerce. In order to effect a speedy settlement of payments, clearing-houses are established. At the clearing-house the representatives of the various banks meet daily and liquidate the checks drawn against one another; and although the total yearly volume of payment aggregates the sum mentioned above, the balances for a year are but little more than two billion dollars. Even this does not always represent cash payment, for a bank that is a debtor to another at the close of one day may be a creditor for an equal sum on the next.