New-York tribune., 1867-03-15
RESUMPTION.

,ur r,,crrNCY IN CwCULAIION-A"Vo- 80,
ny TIE COUNTRY-TuE DEMANDS ~ OIO-,
,pv,,v~r-osJRCTIONs 10 BkSUMfliV'"
from our SPECIAL Correspondent ,,,.,, March II 1857
The Editor of THE TRIBUNE having 'aHet M
20 NV views on the ability OF the treasury
rosouo immediately, l feel bound to present inc
e,nsidorotions ON which ground my Judgment
li,ct of the immediate resumption OF specie
oavmepts turns in the first instance on the answer
20 This question: How much floating money OF cn-
eIa,ion "a required for the internal trade OF the
osuntry when conducted a coin basis 7 This Is q
Question of some difficulty, because we have always
had when not in state of suspension mixed cir
eu,ation of coin and paper and it is hard to tell just
what proportion they bore to one another The best
we could do therefore, is approximate an accurate
conclusioR We know. however, what the amount
of the bank circulation formerly. 1t used some
times TO run down TO $780, OO0 and 1t used TO run
up TO over $200,0OO,OOO.
We may then call it $15OOOO,OOO on an average. AS
to specie, 1 imagine 1t would be generally deemed
pretty liberal estimate in regard to the amount III
current use to say it was half much as the paper
afoat Yet the $25 100000 or $SOOOoOOO of paper we
now have IN circulation under the denomination oi
one dollar seems TO be about the quantity required
for fractional circulation and we may therefore us
sume that if inst about represents the amount OF Sill
YER change in use before suspension. Inns alloius
someesIde for estimating the amount oil com III use
sbore the denomination of dollar at that period Ii
youId seem that $5OO00O00 would be the least sum
that could be named predicated on this OASIS. L
should however, be inclined to say that this is TOO
small figure to represent the actual quantity. Sup
pose we take $lOO,OOO,OOO of coin as the amount IN
circulation before suspension. We shall then have
$250OOOO 900 as near the gross average sum OF money
in uss in the country before the war
tha ouautitV of CiTCula-
ting money required at that period how much do we
need nowf This is another difficult query to an
swer or at least question which there is great
diversity of Judgment. Individual opinions vary,
and no one man is disposed to defer his to another
IL is alleged that the aggregate OF business ransac-
tons has been enormously increased during the last
six OF seven years and that this necesstates cor
responding increase in the volume of money; and
the inference is that perhaps after all we have not
great excess at present. But it must not be forgot
cen that money is not required for the aggregate OF
trading transactions but only for the comparatively
small expenditures and for the adjusting of balances
The great operations of trade represented by bank
and individual credits, and in their adjustment cir
culating money is merely the change So that trans
actions may increase immensely without requiring
any corresponding enlargement of the circulating
medium. But without going into detail on this ques
ton which admits of much elaboration, we may ad-
init that require more money now than ever be-
fore Suppose we add one hundred millions for our
extra wants this will give us, as the requirements OF
oar internal trade at the present time, an average
sum of three hundred aud fifty millions.
Now how much have in usef The banks have
tOOOOOOO of their bills in circulation, and the Gov
ernment have over $4OOOOOOO0 out, reckoning the
fractional currency beside $5OOOO0oO of their legal
tender six per cents making $S5o,OOOOOO in all; to
which is to be added some considerable sums of old
State bank circulation. But l will lay aside fgac
tions aud call the aggregate $S50,0OO,OO0.
But from this $SjOOOOOOO we must make some
material reductions before we shall truly represent
tho amount in actual circulation In the first place,
there s portion of the $50 of per cent legal
tenders that is held by individual capitalists, and
cupies a mongre position being held partly money
and partly as not money. We cannot say how much
Is immobiiized in this way. We may approximate
the perhaps by calling it sos OOOOOO Then of the
legal tenders OF all Sorts the grcenbaCls and the
per ceutS the banks hold about $200,OOO,00O. Then
again. they hold of their notes near $2OoOO0O0.
To which is to be added about $j00O00O0 of bank
OOtes held by the Treasury. Here have 20 be de-
1ucted from the $JOOOOOOO in circulation follows
Estimated per cent legal tenders. $25 100000
legal tenders in bank 2OOO0OOOO
Bank notes held by banks ....-......... 2OOOO,OOO
- Bank notes held by Treasury 5OOOOOo0