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

Total for twenty six years. .f982, 500 900
You win not fail to remark the general uniformity
Of the total paper circulation during this period.
Estimating the population Of Great Britain for the
period at 600, and counting the pound sterling
equal to - "a, we ind the average paper circulation
must be deducted the Bank OF England notes that
were withdrawn from circulation by other banks
and held as legal tenders to meet their demand liza
bllities.
We have no reliable statistics Of the circulating
coin OF Great Britain. Professor Jcvons, OF the Eng
lish STATISTICAL Society, has recently shown by n
most ingenious method that II cannot exceed
fsooooO 900 OF gold coin, and f1AOoO00O Of silver.
Tt Is satisfactory to know, In view OF still ex-
travagant estimates made by other writers, that this
IL It's maximum: but this fact affords reliable evi.
dence OF the actual amount OF such circulation In
arriving at this maximum Professor Jevons makes
deduction for the coin melted up into bullion or
consumed in the arts nor for that which IL boarded
or carried out OF the country by private hands
These important omissions render his efforts OF no
practical value save demonstration Of the fasity
Of all higher estimates.
BY consulting the currency statistics OF Great
Britain for the years In which her banks were sus-
pended we may gather facts that will enable us to
make an estimate on this point closely approaching
the TRUTH
During the greater part Of that period gold ceased
TO circulate. Knight. In his history OF England, In
commenting on the depreciation OF her paper cur
rency in 1872 and 1918, says that gold was bought
up and sought for ut constantly increasing price,
and that guinea, half-guinea or seven shilling
piece had become rare sight In Great Britainp
one and two pound notes had taken the place OF
gold. OF these about cl5 100000 were in circulation
at that period, equal In value or purchasing power
TO Ei2 OOo, 600 of gold COIN There was alsoan crcu
lation about coo Of silver tokens in the form Of
Sbahish dollars, stamped and made redeemable ut
the bank IN paper al the rate OF 81. Cd each, or
shilling above their value In gold.
Tcese facts show that silver tokens and bank notes
10 the amount Of si5,o0o,0D gold value then per.
formed al the service s1s,s now required NJ gold and ak
commercial aativi' IN the same ratio 10 popula.
ton GO g2 81 circulating coin wond do u now.
Add to tns Dout fio 0o0 for the preference ottsn
fVen to gold over convertible paper where Parties
have liberty OF choice and deduct zoo for ~
ana s HSf srSpShs Z na II and Scot
culatIon IN Great britain al the PRESENT time
namely, CSC, 600 000 or "a "a per capita. Adding thls
10 the paper circulation, as shown in the table
we have totalof $i1 ~; but deducrins
600 orr cents per capita for Bank OF England
notes held ia reserve by other banks have the
total active circulation Of Great britain $40 So pei
capita.
The approximate accuracy OF this estimate 1:
proved by the following acts:-1. 1t correspond
with the volume OF controvertible currency that the
laws OF trade have awarded to the United States ts
dncrence In favor OF Great Britain merely indicat
Ing the degree IN which she s the more commercial
u the two nations 2. The total circulation OF Great
britain when her currency was inconvertible and III
TOTAL quantity deiintivey known from the records Of
| bank issues. never exceeded s13 per capita This
quantity was shown to be redundant by the depreci
on OF the currency and by tho fact that the banks
iounn y impossible TO resume until they had largely
The annexed table, showing the movement OF the
RANK OF England during the period OF suspension
anu lOr tmo Years preceding It, VIII throw additional
hgbt Oh tIis point, and ALSO prove the tity of AL
enoIts u. resumption wnilc the currency continues
Year Circulation Dn,svs J,,,,io,.
i.a5.'........ &i4ols,0vo f5e13.Ooo kel 1850