The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-03-21

Aho currency IN ElFeulR1lOn---
Amount Needed by the Country.
Ihe Demands Upon the Government
---obJeetiOns 10 Resumption
co1TspOndeHes OF N. Y. zFIbuns.
WAsHISoToS, Monday, March '67.
The editor of the Tribune having ta-
ken decided exception 10 my views on
the ability of the Treasury TO resume
Immediately, feel bound to present
the considerations on which ground
my Judgment. gHF-7H 80
The subject of ftheimmediate resump-
ton OF specie payments turns, in the
hrst instance, on the answer to this
question: How much floating money,
or circulation is required for the inter-
nal trade OF the country when condact-
ed on coin basis? This is "a question
OF some difficulty, because we have al
ways had, when not in u state of -sus-
pensiony a mixed circulation OF coin
and paper, and it is hard to tell lust
what proportion they bore TO one anOth-
er. The best we could do, therefore. is
approximate an accurate conclusion.
We know, however, what the amount
OF the bank circulation WAS formerly.
1t used sometimes to run down to $780,
GOO, 600, and il used to run up TO over
$500, coo 900.
We may then call it sI5O, 900, ,OOOIon an
average. As TO specie, 1 imagine il
would be generally deemed a pretty
liberal estimate in regard TO the amount
in current use, to say that it was half
as much as the paper afloat. Yet the
SIS, 600 900 or $50. .00O, ,OOO of paper v e
have now in circulation under the de-
nomination OF one dollar seems to be
about the quantity required for IFac-
tional circulation; and we may there
flNeEa aGCsTNF -
sents the amount of silver change in
use before suspension. This affords
some guide for estimating the amour.
of coin in use above the denomination
of Il dollar at that period. 1t would
seem that $50. 900, 900 would be the least
sum that could be named, predIcated
on this basis. L should, however. be
inclined TO say that this is too small a
figure to represent the actual quantity.
Suppose we take 500, ,OOO, 600 OF coin as
the amount in circulation before sus-
pension. We shall then have $3.50, ,OOO-
900 as near the gross average sum of
money in use in the country before the
war.
five assume this sum as the ouanti-
ty of circulating money required at
that period, how much do we need
now2 This is another difficult query. to
answer; or at least a question on which
there is great diversity of judgment,
Individual opinions vary, and no one
man is supposed TO deter his to anoth-
er's. 1t is alleged that the aggregate of
business transactions has been enor-
mously increased during the last six
or seven years, and that this necessi-
tateS corresponding increase in the
volume of money; and the inference is
that perhaps after all we have not a
great excess at present. But it must
not be forgotten that money is not re-
quired for the aggregate of trading
transactions, but only for the compara-
lively small expenditures, and for the
adjusting of balances. The great op-
erationS of trade are represented by
bank am individual credits, and in
their adjustment circulating money is
merely the change. So that transac-
tons may increase immensely without
requiring any corresponding enlarge
ment OF the circulating medium. But
without going into detail on this ques-
ton, which admits of much elabora-
ton, we may admit that we REQUIRE
more money now than ever before,
suppose we add one hundred millions
for our extra wants, this will give US,
as the requirements of our internal
trade at the present time, an average
sum of three hundred and fifty mil
lions.
Now how much have we in use? The
banks have $500, 600, 900 of their bills in
over S4OO, ,00O, 900 out, reckoning the
fraudulent currency, beside SI5O, ,OOO. 900
of their legal tender six per cents.
making $3.50, 900, 900 in all; to which is
to be added some considerable sums of
old State bank circulation. But Twill
lay aside fractions and call the aggre-
gate $3.50, 600 900.
But from this $3.50, ,OOo, 900 we must
make material reductions before we
shall truly represent the amount in ac-
tual circulation. In the first place,
there is a portion of the $3.50, ,0OO, 900 of
6 per cent. legal tenders that is held by
individual capitalists, and occupies a
mongrel position, being held partly as 4
not money. We cannot say how much
Is immObiliZed in this way. We-may
the sum perhaps by call
ing it $25, ,00O, 600. II hen, OF the legal
tenders OF all sorts, the greenbacks and
the per cents. the banks hold about
500, 100000 Then again, they hold OF
their own notes near so, 600, 900. To
which is to be added about $50, 600, 900
of bank notes held by the Treasury.
Here we have to be deducted from the
$3.50, 600, 600 in circulation as follows:
Estimatei per cent legal tenders. s25, 600 600
Legal tenders in bank S.--.-----...... 2J0 OOJOO0
Bank notes held by bankS.-...-----..-.-. 100000
BAND notes held by Treasury--------.--- 5O,0OOOO1
Total-..--..-......-.... sl95 900 600