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

These figures show the average bank circulation
10 have been, during the period embraced In the
rency OF that period, must add the circulating
coin. There are no reliable data for determining this
money in 81 bills and above ana consequently there
has been absolute need for coin except for frac
tiona parts Of dollar. We know that $83 600 OF
about 20 per cent, now sunless to supply this want
for our present population Of S8 00O,0 00 Hence we
Of coin would have met the absolute wants Of the
community during the period embraced IN the table,
when the average population was but 20 500 900. But
we know that many prefer coin 10 paper money, and
that during much OF that period we had in oircu-
lation liberal infusion Of gold coin Is well silver.
accuracy the total average coin circulation for that
PERIOD but, from various considerations bearing on
the question, which cannot stop 70 present feel
warranted in saying that 1t could not have exceeded
$70000o0 which Is about $50 per family, or IS q
per capita.
In this estimate do not include the coin held by
banks nor that held by persons as permanent
boards for the obvious reason that neither Of these
constitute part Of the actual circulating medium
That held by banks Is Withdrawn from circulation
to give credit and currency to their circulating notes
and to be given In exchange Tor them when pre-
permanent boards Is not only withdrawn nom cir
culation, but Is totally idle and unproductive.
coin ~ Ias ~ cns
It gives total average circulating medium for the
twentyeght years Of 80 q per capita. This Is the
first important fact established by the foregoing
table.
The next is the general uniformity in the ratio OF
currency to population during the whole period Of
tons which were promptly corrected by the natural
laws Of trade. the Increase OF currency Kept even
slight preponderance In favor Of the currency since
we have become large producers Of the precious
metals at diminished cost Dividing the table at the
year 1850 we ind the average OF the subsequent
years to be about thirty cents greater per capita
than that Of the preceding years IL Is probable
however that there was even greater prepOnderance
OF circulating coin In the latter period Putting the
two together 1t would be fair to estimate that the
total circulation for the earlier period about
1917 per CAPITA and for the later period about $s7
the difference being caused by the cheapened pro-
ducti0n Of gold.
were but two periods in which the total circulation
including coin, exceeded SO per capita: These
1854. The flrst period embraced the years in which
the great bank expansion took place, and which
eliminated In 1887 in the most disastrous suspension
traction Immediately preceding and following that
suspension caused great distress and pecuni0ry en-
narraJment throughout the Union. 30 pafa.yzing
traction Of the currency TO less than halt the volume
it reached in 1885, and seven years OF languishing
ruinous as this reaction proved, il was caused by
an innati0n OF the currency, which reached at It's
highest point only s1s per capita
circulation reached but $l per capta but this
small excess brought about sudden contraction in
capita The banks having escaped by TINS contr nc.
tion the perils Of immediate suspension a1ain en-
larged their discounts and circulation, and thus
brought upon themselves the suspension OF 1857.
You viii thus perceive that the natural laws OF
trade, which prescribe the limits OF convertible
fict penalty for their violation. You viii also per-
ceve that the statistics embraced in the table fully
sustain the three propositions In proof Of which they
Let us next glance at the currency statistics Of
Great Britain. The annexed table gives In round
numbers her total bank note crcuiatlon In each
ven inciueive.-