New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-29
DETERMINATIONS or CrRRENcr.
Totol s3Go. 772osl S32S, o2D,O72 S6Ds,7UI'ooO

The amount in circulation has been greatly
reduced since the date named, but there Is
reason TO believe that the retirement mas not
been of small but of large notes mainly. we
have still in use, it is probable. about
s55. 900, 600 of 81 and 50 legal-tender notes,
and there are in circulation i'll France less
than 100000 of notes of similar value.
Also we have in circulation about S15,0OO,ooo
of LEGAL tenders of So each, while France has
in use only S16.OO0,OOO of like value. The
consequence is that prices in France are low;
that nation has escaped in a marvellous degree
the disasters of late years; its Industries are
thriving and its people thrifty; ana It's cur
rency is as good as gold, for the money when
the people use in retail dealings, and which
therefore fixes prices, is almost wholly com.
But our currency is deprecated, our prices are
IRREGULAR, unnatural and 1uctuating, and the
condition of our industry is well known.
Secretary sherman has the power to retire
| 700 900 lcgal-tcndcr notes OF ri each Oh
Saturday, if he chooses. True, he may not
have in the Treasury vaults at this moment
small notes to large amount, but ne can
cause 10 be retired notes i'll any OF the ne
pOsitarics all over the country. Indeed, he can
instruct the officials III charge of deposits, II
he chooses, to collect small notes instead OF
large notes to any reasonable amount. Ills
poWcr to regulate the denomination OF notes
in use is wholly unrestricted, and If he chooses
IN Gather and retire notes of small dcnOmina-
tions. whenever required to retire any legal
tenders. he has an ndisputablc right to do so.
Probably Secretary sherman has not failed
TO observe that Il master stroke in the wonder
Ii l,Nr niph
maintained its paper currency at par has been
the prompt retirement Of the small notes
issued during the war. Sagacious III finance
beyond all other Governments, France has SET
EXAMPLES which command the attention OF all
Intelligent men by the splendid results
achieved But very few realize to what CX-
tent the great success OF the French iinan-
cial u0licy has been due to the early
withdrawal of the small Government
notes For the notes which the millions
use in their daily transactions dcpFeciate
first and are the last to recover value; they
fix the purchasing power OF the entire issue OF
papcr. and thus determine i'll the long run It's
relation to gold. France was wise enough TO
take away the small notes, compelling the
general use of coin in retail Transactions.
has been so clearly marked and success
achieved so Splendid Let it not be supposed
that mere change in the denomination of
notes i, the only thing necessary. In
contraction of Che volume as well Is
in change Of the character or the
currency we must follow in the foot
steps of France if we wish like success.
But Secretary Sherman may rest assured that
it will do more good to retire Sl,TO0,OoO OF
small uota7, ana viii move the country further
toward resumption than 10 retire $17,0OO,0OO
in notes of 500 each or more. The latter
never tempt people to spend Ill careless
purchases. The large notes never fix the pur-
chasing power of the currency, or its relation
to gold The small notes make large prices
and cause the currency to drprcciate. Is it too
much to hope that the Secretary OF the
Treasury will begin at once to teach the
scolf"ls that - Shcrnans Sham" was not "a
impotcnt or meaningless as they Supply sup
DOSPUI