Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1877-08-02

year:
Year. Amount. Year. Amount.
1862. 44, 786 2OS 1s70......... 740,039, 179
1S63..... 1,043, $40 AS 1871 -. 244,774
1S64...... 96S, 059 995 lSl2.....-- 136.349, 9l2
1865. 1651 2S2 3T3 1S73.... 1875. 29l, 749
1865 49,. 1903, 702 re 1S74......-. 1903 $50
1867. 1880 Ala on 1815....... 7IS,176, $50
1S6S..... SIT, l99,773 1S76...-..... 1885, S32
The year 1877 is not embraced in
the table. The total of the several
items now outstanding is not far from
| $685., 100000. To this should be
added about $50, 100000 of subsidi-
airy silver, which is generally admitted
to be as good circulating medium as
fractional notes. 1t will be seen that
according to Mr.. Fawcett's figures
there was expansion instead of con-
traction from 1871 to 1875, and since
then, reckoning In the subsidiary sill
yer, there has been contraction to the
amount of no more than $51, 100000.
The official figures, however, show a
contraction Of S74, $4,000. The
difference is due to the fact that the
accumulation of notes in the treasury
on various accounts since 1875 is
reckoned In with the amount last gil
ven, for the reason that the notes &C
cumulated have practically been with
drawn from circulation.
The circulation, according to Mr.
Fawcett, reached its maximum--S1,-
SOB, 702, 1876 in 1866. But this
enormous total included not only a
small amount of demand notes, which
did not circulate any more than gold,
and nearly $45, 100000 of state bank
notes, which were practically out of
circulation, but nearly $1,117, 100000
of Understanding obligations of vari-
Gus kinds, which certainly did not per-
form the functions of money to any
considerable extent, although some of
them were legal-tenders. There was
enough paper bearing no interest
wherewith to pay debts, and the inter
est-bearing paper was held for profit,
just as bonds are now held. 1t is
doubtless true that the 7-30 notes, as
we'll as the compounds were used to
some extent i'll paying the army. 1t
may be true, also, that the smaller de-
nominations of these notes circulated
for short time to some extent, but
every business man can testify from
his own experience that they never for
any length of time formed an active
part of the circulation.-They were
not adapted to that use, because of
the Inconvenience of computing ac-
crued interest at every transfer De-
Quoting, therefore, the items that are
enormously reckoned as circulation
equally useful with greenbacks, and we
find that the actual circulation in 1866
was only about $64S, 100000, OF
about $75.000,000 less than the
amount now nominally outstanding.
1t may be admitted, as has already
been remarked, that some of the in
terest-beariDg obligations eff the gov
eminent did for a time perform the
functions Of currency to some extent,
bat no man can tell to what extent.
There is no way of finding out. All
that can be certainly known is that
they were not used largely as curren-
cy for if they were, then there was a
contraction Of nearly ST, 00,0O0,OOO,
or about 81 per cent, between Jan /.
1869, and contraction at that rate
would have produced the most tremen-
dous revulslon the country ever ex-
perlenced In fact there was no re.
vulsion, and that is sufficient proof
that the interest-bearing paper of the
government did not serve as currency
equally with greenbacks, nor even to
any considerable extent. The only
way is to leave them wholly out of
the account in estimating the volume
OF currency at any time in use. They
were rather objects of exchange than
medium of exchange-rather tax
upon the currency than an aid to it.
The 3 per cent. certificates were the
only exception. They were intended
to serve as bank reserves, and to the
extent that they released greenbacks
from the bank vaults they may proper
ly be regarded as an addition to the
volume of currency. They first came
into existence in 1867. On the 1st of
January, 1868, the amount outstand-
ing was $4,000, 900. A year later
| they reached the maximum amount of
$50, 120, 000.-Reckoning them as so
much currency, the total amount of
circulation at that time was 1874, 862,-
900, OR nearly 500, O00,0O0 more than
was outstanding on the LIST of Janua-
ry, 1866. Such was the imitation dur
Ing the very years when, according to
the ragmoney people. Mr.. McCulloeh
was running the country by contrae-
ton.
Subscriber is altogether wrong
in assuming that certificates of deposit
should be reekoned as currency. The
treasury constantly holds greenbacks
TO the full amount of the certificates
issued, as the debt statements show.
The certificates are issued simply as
matter of convenience. and are moth
ing more than substitute for an equal
amount of greenbacks Withdrawn from
use