The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1877-08-22
what Currency Is needed.
Tic New Your Pnblic.

Since 1872, the year in which railway
building was checked, and rapid de-.
cline in securities and general prices be-
gan, there has been fall OF about 22] per
cent. IN average wholesale prices in New
York. IL is proper 10 presume that
there has been n corresponding decline
in average wholesale prices throughout
the country. Hence, II the number of
persons to be fed and clothed had re-
manned the same, and II consumption
had continued in unchanged proportion
to population, it would now require
about 22,6 per cent. less currency 10
transact the Wholesale business OF the
country. The number Of persons has
increased, perhaps as much as IL per
cent, but, as all know, consumption of
TODD, clothing, iron, coal, manufactured
goods and their materials has not in.
creased, but is on the whole smaller
than was in the latest year of great ap.
parent prosperity. The consumptiOI
per capita has declined fully as much az
the population has increased, 50 that
with no more work TO do In the moving
Of crops, the purchase OF
materials, the exchange OF products,
the payment Of wages, the settle,
ment Of retail bills, and the support OF
the machinery Of credits, our currency
has been Increased in purchasing power
tally 22i per cent. One hundred mil.
lions viii 90 quite as far, in all the uses
for which paper currency IL required. a.
$lA,1y,UJ would In 1872. A, the be-
ginning 81 that year the circulation, the
.sgl4-.E19e, notes and old demand note.
it-lfys-;Ef5 ~ $50. ppDJy, and during
iiig,; gts. . WI, l.Gseaasil ~ soc. 90 l,,J
\ Spt [ia .'5 Ic Gvgur iA,s e.t1..S,a,t, gag
SE.t ,SN, NGE uut -At ga. ...r,g. slste Ia
rup " NY Itiit Vrip v,ll ,!,.o,,, as m
uW NJ Nup,N ! 'jnr su,r. ysae ,.,s
NNnnn ~ Ghp,rrp t,ru,r,an. az u,ra
4 ~ IL h'l'lmrt ia nIltlt pE'uiits.. ~
In'wrt ~'ia'i mu,c,,s1i, Il Nol.,S Ayo ~
ptI'i S1ai,VB WI ~ d,,vtr 4 W. s.ae
~ abt s.i2.Yt ppr;eacy e., gY, ottts q;
ne p''hfs n .%z a.. we've yel,,a..y
prO.psfout, ~ iAi aaI !. sysg ssttly ~,
currency could make " ,i,aisrgt,. me-
should have an equally liberal S1t,,iy
To-day and to that extent might eInec,
as great PROSPERITY, II Tie currency ,,c,c
contracted $4,000, 900.
1t is true, the amount Of currency in
the Treasury has increased. At the end
Of 1872 1t was about Sl0,0OO,OOO, and is
now about $2O,GO0, 900, beside $li, 400.
900 legal tenders on deposit for retire.
ment OF bank notes, and about $l5, OO0,O
In the five per cent. fund; IN all about
Sj0,0O0,00O. Thus the currency in use.
either in the hands OF the people, or as
the basis OF our credit system in financial
institutions, or in the Treasury but re.
presented by certificates which are used
as reserves by the banks, Is about SG23,.
1900. or about 500, 400 900 IN excess of
the amount which would be required to
90 the same work as the currency in
actual use In 1872. lndisputaby we had
quite enough In circulation then. and il
seems to he dem0nstrable that we have M
ieats 800 600 900 more than enough now,
put material contraction of legal ten.
defs would lead to contraction, probab.
y ABOUT as great, In the bank circulation.
III therefore seems reasonable to say that