New-York tribune., 1874-01-27
Sill OHS nSJ

Circulation. 4oJi Voo'o'
The unfairness of counting as currency, obi
cations bearing five and six per cent interest
aud issued in large denominations, i'll the sense
in which ten and twenty-five cent shinplasters
and one dollar notes are currency, Is patent !;
vet we are compelled to do it because they
have been 80 regarded by the Treasury De-
partment, which we all know possesses powers
which enable 1t to override, not only common
sense. but the laws of Congress and the Con-
stitution of the United States. Perhaps between
the 3Oth of June, 1866, and the end of the cal
endar year 1857, there was contraction OF
the currency. Such is the common opinion
Yet Mr.. Kelley is far from receiving any as
sistance from the circumstance, since the
table shows that during that exceptional
year there was only the trifling increase oil
six million dollars i'm the loans and discounts OF
the banks. From the Fall of 1857 to Septem-
ber. 1873, the legal tender circulation was not
contracted a dollar, the fractional currency
was augmented eighteen million dollars,
the National bank circulation was swollen forty
millions, and the number of National banks
increased by over three hundred The with
drawal in the interval of three per cent GER
tifcates affected only the legal tender reserves
of the banks, the stock of money in the pOck-
ets of the people not having been diminished
thereby o single dollar. The cash balance in
tho Treasury on the 30th OF June. 1857.
was nearly seventy-twO millions IN cur
rency. which alone is a difference OF more
than fifty million dollars. as against any cur
rency balance held by the Treasury within the
last two years. If we cOnfine our attention to
the six years from 1867 to 1873, we find prac-
teal increase of at least one hundred million
dollars in the paper money in actual circula-
ton. accompanied by an increase OF bank
loans and discounts from $6lO,0OO,OOO to
$944. 900 900; and yet Mr. Kelley says that the
great increase OF indebtedness ID due to
contraction! So far from its being true that
there has been contraction, the facts are, start
ing from the Fall of 1867:
1. S1S,OOO,OO0 expansion of fractional cur
rency.
Q. $4,000 900 expansion Of bank circulation.
8. $50 900 expansion by decrease OF cur
rency balance in the U. 8. Treasury.
4. sA0OO,OOo expansion by disbursement of
legal tender reserves held by the banks. which
we do not count, except as an Offset to the
withdrawal of three per cent certificates.
8. S34 new National banks established, which,
by extending facilities for making payments
in checks, economic the use of currency.
Since September last the National Treasury
has been emptied of $15,O0O.O .OOC, there has been
direct imitation of 900 by the increase of
the legsl-tender limit to $4O0,OOo,O0O and it Is
morally certain that the limit of National
bank circulation is to be extended S25, ,O00, 900,
in order that all sections Of the country may
share alike in the privilege of lending their
money TO the Government at five per cent
and getting eight-tenths OF it back again in
the shape Of paper money which they are
never called upon to redeem. This is Mr..
Boutwells progres! This is Mr.. Kelleys con-
traction