The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-01-05

Total Of paper and coin ............. $744 900 900
nave not included in this estimate the three
per cent legal tender certificates compound interest
notes and coin held by national banks, for the rea-
in reserve, under legal requirements and to give
currency 70 the circulating notes issued by the
banks. For the same reason we must in order to
ascertain our actual circulation OF paper and CON-
deduct from the total, as given above, the amount
Of greenbacks held by the national banks. The re-
port OF the Comptroller Of the Currency shows that
these have averaged for the last calendar year
800, 600 o00 Deducting this from the above total
leaves a. the actual volume OF our present crcu
lating medium, S644,000,00o.
This estimating our present population at
3sOOO0 00 gives circulation or $l7 per capita, 10
pc the mpasssbe limits OF conyetine rpe avr
These figures are somewhat startling, CONFESS but
no one viii venture TO say that have overestmated
the foreign demand for II With the demand thus
weakened, without . corresponding abatement IN
the supply, our surplus gold has been mainly gath
cred into the United States Treasury, while the bal
ticement 10 speculation.
But for the aQyentLious dimnution in the demand
for gold we should have seen its premium equal 10
the enhancement OF price in other things. we sRaii
yet see the present difference between Them eaccd,
either through contraction OF the currency. which
will reduce prices or through al increased demand
for gold, which Will enhance the premium. That
demand Ia already strengthening from abroad.
During the calendar year Just closed we have
our productions, not less than s2s, 000 In
fact, our exports Of coin have largely exceeded our
III.
t0namerctrl ana E1ndaciai Caloiicls In able odIto-
rias, has recently shown that, Notwithstanding our
large production OF gold since 1882, our stock on
hand has been reduced about Sl0ooe0,00O. The
writer estimates and think correctly that we fave
but little gold in this country available for COM
ment and the banks Of his city Unless there Is an
enlarged demand for our securities abroad or con-
traction OF tho currency we may expect this excess
OF exports to continue unt checked by material
enhancement OF the PREMIUM = -
RESUMPTION AND WHEN IT CAN Nc BEST Ac-
COMPILsHBD.
Having looked ut our financial sl,uafiou in ALI lis
material aspects, mud having shown by relthbIe
statistics how ar our paper issues exceed the I'M
Orc prepared 70 consier the me- ialcus, sS
rs bring us safely back 70 So, 80 wen,
From what nas qee' laid i vii be readily seen
.uae as al effort at RESUMPTION must e,suvr
e. contraction Sa,1 g sa = our 'cn.
commerce rises to the level Of our currency, -
until the equalization IL brought about By the jo 1t
influence Of contraction ad ccninsrs growth
secure permanent resumption, IF tie effort be
made without lrst enforcing Tie requisite conirac.
tion, specie payments cannot hg maintained for a
week, as Is proved by tho signal failure OF m sort
at resumption made by the Bank OF England Ia
1871, under similar put far less uniayorabie cir
cutnstanccs. II, on the other hand the requisite
contraction be made suddenly, with a view 10 early
resumption, II would produce q monetary strngency
and 9 shrinkave Of values before which the wealth
OF the country would disappear ike the
scenes OF o dissolving vow Il would block
the wneels OF commerce, parayzo industry,
ovcrwhelm the country In financial embsr-
easements ana force the government the
banks, and the whole debtor class into common
insolvency or suspension OF payments. This, as
have shown, has been the union experienc, ~ tue
nations making like efforts under similar ciryum.
stances. The elort therefore would produce ire
paraole injury anu az me same time fail In securing
Its object Resumption, instead Of Icing fastened
BY It. would be indefinitely postponed
WDat, then, 10 the proper remedy Tor existing de-
1ecs IN our currency lsnswer, Mastery inactivi-
ty.' csnnot join Nj. McCuhoch ana others la their
denunclatoh Of that currency II has but two serious
ueects-nailey, Us depreciation and the uncertain
" as 10 the future action Of Congress IN tercnce 10
u. With these exceptions Il mas be Justly regarded
as the best circulating medium that any nation has
ever possessed.
There IN Q general misapprchension as TO the
eeonVNk eaeSw u . VNrTepey deprecated ~ ours