The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-11-18

FRACTIONAL and Postal Currency 2s,Do.uOO
soeo.OOo,oOo
>. BANK CIRCULATION.
National Bank Notes S1se,O00.OO0
State Banks 5l,O0c.OOO
Total ......-... 5000, 100000
Thus Il will be seen that the amount ofmoncy
now In circulation Is six hundred million more
than in 1859 and go. Some persons appear to
DC apprehensiye lest the currency should
be too suddenly contracted. Judge Nc
CULLocn. the Secretary Of the Treasury.
In his Fort Wayne speech, took ground
In favor Of gradual but steady reduc-
ton OF the greenbaeks, or, at least, that
portion Of them bearing interest. There j., If
our memory serves Alright, about two hun
dred millions Of the compound interest and in
terest bearing Treasury notes. which become
due in 1856 and 67 and IL would seem to be
the settled policy ofthe Government to take
these out Of circulation by funding them. in
other words, by taking them up and giving In
lieu Of them long bonds payable in ten or
twenty years. or by canceling stated
amount Of those received into the Treasury
tfNAe IAHAAlis ~ - -AAA " H'hti WIN diN Nul
posed 10 be conversant with the Secretary's
Views, that he does not purpose 10 reduce them
by this system Of funding at a rate TO exceed
twenty-five millions every ninety days. This
being SO, as there are now over two hundred
millions OF these interest bearing Treasury
and compound notes outstanding, IL VIII take
two years, At least, 10 get them out Of the way
before even beginning can be made 10 with
draw any portion Of the clean grecnbacks from
circulation. At j. 10 be observed that there are
now only al out two hundred and ffty millions
Of bank paper In circulation. including the t.
sues Of both the National and State banks-the
National bank currency Is limited by act OF
Congress 10 three hundred millions-supp0sing
after January, the inteest bearing greenbacks
70 be reduced at the rate Of. say twenty-five
millions per quarter, there would still be no
pcrceptible reduction Of tie amount Of money
IN circulation, for six months 10 come a the
National bank currency will probably continue
70 increase aud be run up TO the full limit by
midsummer. II must be obvious 10 every one
that funding greenbaeks will not cause n con-
traction Of the currency If the circulation OF
the National banks increase at about the same
rate Of the withdrawal OF legal tenders. After
this, say in thecourse Of eight or twelve months
there will be, II the contemplated measures arr
carried out. gradual reduction. At present
the banks, National and State, keep their re
serve mostly in the interest bearing treasury
and compound notes. When these are all with
drawn the banks will be compelled, from ne
eessity, 10 replace them with clean grecnback-
70 redeem their own circulation, when pre-
sented.
The question Is sometimes asked. when will
a greenback and gold dollar be Of the some
vslues The early flnanciers Of our country.
such as JEFFERSON and HAMILTON. main
tanned the position that the United STATES
Treasury could keep at, or near. par with
~pecie; an inconvertible currency ifthc amount
It'd not exceed the annual revenue. should.
therefore, the sum paid into the Treasury be
equal TO a million per day, or three hundred
and sixty-fye millions per annum. and the
above theory should, on experiment. prove
true, as the Government has out. Of it, own
paper currency, six hundred and sixty mil
lions Of dollars. and they should not reduce 1t
AZ more rapid rate than one hundred
millions annually, II will take al least
three YEAR before shall again see gold
va ritNti IN tlItutauVn. Nor l. IL 10 DC lOTLot-
ten that the theory Of Mr.. GALLATIN and 9TH
err, that Al irredecmable Governmen: curren-
oy can be kept on par with specie. if not in
excess OF the revenue. i based on the supposi-
ton that It, and II ONLY. should De received
for AL Government dues. How far this will
prove 20 b correct in practice, if the Govern
ment continues % receive the paper Of over
two thousand different banks, scattered far and
wide over the country, may require more con-
sideraiion than we have space Al this time 10
devote 10 il. We clip the following from an
exchange:
The New York Tribune states the total cur
reney % the country a. follows;
Government Legal Tenders. SEX. zoe. GIL
Notes q National Banks 203. -. 80
Notes q safe Banks 6O0N.Oll
Total Currency So. $50 800
In what has been said above. and in the Tri-
bUncs estimate, no account i taken Of the
specie currency. According 10 calculations
made. there are in the COUNTRY about sixty
millions q gold and silver. This makes the
total currency IN the United states over $3.50.
ooc,oOo- In this article We furnish some data
touching the currency, which viii omen The
way for discussion ofpractical questions per-
tanning 90 the subject in another article.