National Republican. (Washington City (D.C.)) 1872-1888, 1874-02-23

notice WI be given of the removal of tb
businee department to the new RnrUBLIUA'
buildhg.
H,W MUCH CURRENCYIS NECES
H. SARY!
The answer to this question depends 81
much upon the activity of its circulation
that it is very difficult to determine. Th
activity of circulation again depends almos
entirely upon well grounded confidence
among the people in the healthy state o
trade and the productive application of in
dustry. People have no hesitation in pay
ing out money as fast as it is received, pro
vided they have confidence that others will
do the same, so that it will return again Il
their i-ands in time to relieve their mex
necessities. One dollar in currency may
be made to effect an hundred dollars worth
of purchases or exchanges in a single day
by being kept in constant circulation from
hand to hand. As currency is only valua
BILE as medium of effecting exchanges be-
tween the various products of labor, any
quantity in excess of what is required fol
that purpose is positive damage. Intrin.
sically it is of no value whatever. In eff
fecting exchanges between the producer
and consumer it becomes the representative
of the fruits of labor, bearing fixed, arbi-
trary value 1t follows that when the vol
nme is increased beyond the amount of the
fruits of labor seeking representation, its
value is cheapened in the exact ratio of its
excess. As the value affixed to the medium
Is arbitrary the dilution or cheapening of it
is made apparent in the appreciation of the
price of labor and its fruits.
If the labor of forty millions of people in
this country be estimated at one full days
work for each five persons, (the head of the
family,) it will give eight millions of Ia
borers. At an average of one dollar and q
half day, seventy-two millions Of cur
rency will be required to pay them off each
week. But we find by reference to the
census report that there are also employed
In the manufacturing establishments of the
country 2, 053, 996 persons, of whom 1, 615,-
500 are males and 323, TO females, above
sixteen years of age, and 114,6sS are
youths. The great proportion of this may
be called skilled labor, and much of it, Of
course, commands higher price. But we
find that the sum total of wages paid these
hands is set down at $7775, 5S4, 343, which is
an average of about $377. 50a year, or $7.25
per week. 1t is probable, therefore, that
the higher wages of the ,machinists and
skilled laborers were averaged down by the
lower prices paid to children, youth and
females. In many cases. also, the skilled
mechanics are the employers, and do not
work for wages at all, but depend
upon a share of the profits for remu-
neration. The census does not give the
number of farm laborers paid, but states
the amount of wages paid at 1910, 2S6, 2S5
per annum, while the value of productions
and betterments is stated at 81, All, 53S, 658
per annum The cash value of the farms
is stated at So, 262, S03, S61, and of nipple
ments at 1886, S7S, 429. In manufactures
the horsepower of machinery, including
steam and water wheels, amounts to 2, 346,-
142, showing that in this country we en-
ploy more horse power for driving labor
saving machinery than We do of actual
human laborers. Counting each horse
power equal to six men, we can form some
idea of the advancement which we have
made in the multiplication Of labor since
the introduction of steam, and of the aid it
has proven to us in keeping down the
prices of certain kinds of manufactured
articles, while those not affected by such
machinery have greatly advanced. The
capital employed in these manufactures is
put down at 81, lis, 26s, 100, the cost of ma
terial at So, 4ss. 4a7, 242, and the annual
product at 81, 232 3D., AZ. 1t is fair to pre-
sumo that the capital is not all paid in, and
is therefore partially apocryphal. The cost
of material being three times greater than
the wages of labor, and owing to the fact
that much of the raw material cannot be
turned over as often as once a week, it will
be assumed in this calculation that the
money will be necessary to handle it or
hold it.
Taking the foregoing data as basis Of
calculations, and assuming that we have in
the country the equivalent of ten millions
of laborers, equal to one fourth the entire
population, and averaging their labor at 30
per week each, we require 800, 0OO, 900 of
currency to pay them with every Saturday
night; and estimating the cost of material
and expenses to keep them employed at
three times the amount of the wages we
need $27O, 600, 900 more for this purpose
being in all $500, 0OO, 900 of circulation
weekly. This volume of currency would
appear to be all that is necessary to keep
the entire labor of the country employed,
provided it could be utilized each week.
With our present volume of currency there
would seem to be an excess of $34O, 600, 600
beyond this amount. If this is not enough
1t would seem to be because it is not circu-
lated in the proper channels and not kept
actively employed. If the Government
and the large corporations would adopt
weekly instead of monthly pay rolls, so as
TO keep the funds in constant circulation,
money would appear much more plenty,
and confidence in the stability OF none
tary, commercial and industrial affairs
would be very much greater, and less
easily shaken. The Government now
keeps from CSC, 000 900 to $780, 600, 600 on
hand to provide against contingencies. The
banks are compelled to keep another hun
dred millions in their vaults as q reserve,
which reduces the actual circulation to
about $500, 0O0, 900. With weekly payments
neither of these large accumulations would
be found necessary. The demands upon
Government would never be great at any
one time, and the supposed contingencies
could not arise. The national bank note
holders are album dainty secured, and tie
depositors would be comparatively safe be-
cause their balances would never be very
large on account of the weekly drafts
against them. Speculation would be
checked, because the banks would not have
large deposit accounts to loan from.
1t may be said that these estimates ere
only approximate and not to be relied upon.
But they are Of character which every
person may test for himself. Upon all sides