The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-07
Stating Facts.

been shrunkrn 10y nearly two-thirds since
lsGj. aud he desires TO know whether this
statement is true. We will give him the
precise facts. The total paper money cir
collation. of the country in October, 1865
and Ia October, 1875, was as follows:
-Grecubicks and fraction al currency tsicisooo
ihhh ho't'''ssts' ssssstsss.'t %"''"'N"
Total....................... (;Oi,elsoOo
1915 Grccnbacsi fractional currency .fies ooo
iauA h'''s 'lN'''poVv
rotal......................... f5iG,G5ODOo
This shows that taking together bank
notes, Greenbacks, and fractional notes,
the circulation is larger now than in
1855 10y about forty millions. But in 1866
there were in circulation various war obi
cations of the Government to which Con-
gross had given legal tender quality,
amounting ia all to about two hundred
millions. in the shape of Ave per cent.
loans, compound interest notes, and so on.
Some of these may have been used Us
money. but the mass of them were held by
capitalists, like the other loans of the Gov
crnmcnt. Competent authorities OF the
time have estimated that iu 1865 about
thirty millions OF the whole sum were in
correct, IL would make the paper circula-
ton of 1865 about the same a it is now /;
but considering that some portion OF this
sum was then and afterward in the vaults
Of the banks, and used as reserves in place
of legal tenders, we think that about fifty
millions would be fair estimate of the
actual addition these securities made 10
the aggregate volume OF circulation. On
this basis the entire money circulation of
1865 was between seven hundred aud nfty
and seven hundred and sixty millions,
while the circulation is now something less
than seven hundred and fifty millions.
But 1t suits the purposes OF the paper
money theorists to represent that this
whole two hundred millions of extra legal
tender, five per cent. loans, compound in
terest notes, aud the like, should be regard
ed rs so much added to the circulating me-
dunn; aud not only this. but that all the
| other current obligations of the Govern
| ment, such as certificates of Indebtedness
| and 7 $40 bonds should be held 10 be money
also. This is an absurd pretenson, of no
real validity, rs Is shown by the fact that
the Government began paying all these OBJ
| legations as soon as the war closed, so that
| before 1870 they had nearly all disappeared,
while the fact that they were 50 paid of pro-
duced neither panic nor pressure during
the whole period of the operation. II was
merely case Of paving debts and such a
! process never yet harmed anybody; and II
is an alfront 10 common sense toassert that
the doing II was the parent of disaster and
ruin, ms is ridiculously pretended by such
mouomaniacs on the currency question a.
Henry c. CAREY and his disciples, both in
! the East and the West.
1t should never be forgotten that when
ever the Government discharges dollar oi
its Indictment ii pays out dollar TO some
body. The dollar is not extingushed. 1t
is Just a. much in existence after beng
paid as il was before. If the Government
should begin tomorrow and pay off II mil
lion OF dollars of its debt, and so continue tc
do day 10y day till it had paid every dollar
it owed in tho world, aTeenbacks included
| II would not by that act of paying, diminish
the amount Of actual money in the country
by one single penny; and it is only to be
fog the human understanding, TO inculcatt
any other belief or theory.