The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1877-07-26
VOLUME OF CIRCULATION.

In debate in the Senate on the
currency question:, at the session OF
1874, Senator Carl Schurz having
said that population clone could not
determine the volume of currency
necessary for the real reQr rements of
| the business OF a country, nor extent
| OF territory alone, nor the amOrnt OF
productions, or the number OF eX-
changes of values involved, but a OF
them combined, Senator Ferry, OF
Michigan, gave as part OF his answer
the following ratio OF circulation 10
wealth in the United States TO, .'ast
We; :, which " Ill be found instructive.
Senator Ferry said:
Iu 1850, the real and personal W ralth
of the United States was $7,l45, ,7SO,
22S; the volume OF circulation was
S2U3, 81 ),C~o; the ratio of c'"cr alton
to wealth us 81 to $50
In 1860, the real aud personal wealth
of the United States was SIG, lJU,6l6,-
66S: the volume of circulation was
S46l, c DC; }; the ratio of circ, "a ion
to wealth 81 TO $335.
In lS64.the real I'd personal wealth
of the United States was $2O,C W,l 10,
}; the volume of circulation was
S75O,C -3,OCJ; the ratio OF circulation
| to wealth AS $ to SGT.
In 1870, the real and personal wealth
of the United States was $3O,O6S 5lS,-
5O7. with $S59C 800 as the volume
circulation; 81 to $50 would be the
| ratio of circulatiOn-the ratio of 1850.
In 1870, the real and personal wealth
of the United States was $30t jS,5lS,-
5o7, with 81, Ill &C. J,l 10 as the volume
of circulation; 81 to ~ would be the
ratio of circu' atieI to wealth-the ra-
ito of 1864.
In 1874 the real and personal wealth
of the United States is S35, 5000, LC> },
with ST. :J,C 30, as the volume Of
circulation; the ration of circulation
would be as 81 to $35-the ratio Of
1850.
In lS74,the real and personal wealth
of the United States is S35,C.),t ;0.C.0,
with 81 1,296,CJ0 ,CvO as the volume tf
circulation; 81 to S27 would be the
ratio of circulation to wealth-the ra-
ito of 1864.
1t is thus seen that on the basis OF
circulation to wealth on coin stand
ard in 1850 and lSG0-nameiy, that OF
81 circulation to $50 of wealth-thc
volume of circulation in 1874 on
coin standard, should be Sl,C00,000,-
600: and as compared to'thc ratio OF
1864, OF 81 to $27 of wealth, the vol
ume of circulation of the country in
1874 would be Sl,296,( 5000 of cur
rency, instead of $75OOC1O0O. the
present volume.
1t will thus be seen that on the ba-
sis of ratio of circulation to wealth on
n coin standard IN 1850 and 1860,
namely that OF 81 circulation to $35 Of
wealth, the volume of circulation in
1874, on q coin standard, should have
been Sl,CJO,G0O,G0O instead of $780,
O0O,UN, the then volume and, as COM
pared with the ratio of 1864 of 81 cir
culatiOn to SGT of wealth, the volume
OF circulation of the country should
been in 1874, 81 ,296, 10000 of curren-
cy instead OF S75O,0D0.C.J, the then
volume. No one, we believe, charged
that there was undue Initiation or too
much money in 1850 or 1860, and yet
the country had larger volume Of
circulation, by hundreds of millions,
at those periods in proportion to
wealth than we have now in propor-
ton to the present wealth of the
country.
The proportion of currency to pop
ulation in England, France and Ger
many, and the proportion of currency
to wealth here at home in former
years would decree to our pres ent
population and wealth Orey one Mous-
and millions Of dollars of circulation,
yet the noonies, with Secretary Sher-
man at their head, are crying imitation
and working for contraction.-[E En-
quirer.