Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-08-01

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From Washington exchange we
copy the following observations upon
these tables: ao
1st. The State-bank circulation in
1860 was 1902, 1924 77.OO. The.State-
bank circulation in l76l was $780,
oO5, 767.OO.
I'd. The above tables are official
and give the whole currency circula-
ton, including Treasury notes, State
bank notes, fractional currency, time
notes, demand notes, legal-tender
notes, compound-interest and Nation.
al. bank notes.
Sd. II will be seen that only at two
periods, 1865 and 1874, did the pur.
chasing power of the currency exceed
its present power, and in 1865 only
for brief period, during an extraordi-
nary disbursement to pay off the ar
my and then only in the small sum of
s7,79o,663 Is, and in 1874, the year
following the great panic, which has
been enormously charged to contrac-
ton.
4th. Specie resumption would add
the two hundred millions of Govern
ment com to the circulating currency /;
thus giving, with the private hoard
ings that would be let loose, a circu-
lating medium exceeding by more
than $200,000,OO0 the currency at any
other period in the history of the
country.
5th. In the year 1870, which was
prosperous, the nominal value of the
currency was S7O0,375,s 800 4s, the
coin value of which was $599,521,-
100 95. The circulation gradually
rose to $750,o62, 1868 "a, face value,
and coin value of s64e,o5 ,ss6.76 in
ls73-the year of the panic-and to
1871 ,490,916.17 in 1874; thus the
panic occurred on an increased circu-
lation of S50,oOo,O0O, and continued
under an increase of more than $780,.
100000. Is it not then apparent that
the panic was not caused by contrac-
tion2 Is it not equally apparent that
its effects would not be effaced by an
unhealthy imitation I? Ia 1t not better
to resume coin payment, and thus Sc
cure healthy initiation OF 5000, 000,-
900 in coin? This would carry the
purchasing power of the currency
above what it has ever been, and its
nominal value to near $900,0O0,O0O,
or within less than $l00,ooO,0OO face
value of the highest circulation at.
tanned during the war, and greater by
nearly 5000, 100000 in real value than
at any other period.
9th. The steady and almost uniform
depreciation of the currency, as the
volume was increased, affords incon.
testible proof that, beyond the ordi-
nary demands of business, a paper
circulation cannot be maintained with
advantage to the country, and that
its increase beyond such business de.
mands does not add to its purchasing
power real value.
It'll 1t cannot be doubted that the
Government circulating notes or
greenbacks affords a satisfactory cur.
rency, and it is equally certain that
the nearer the value of such note ap
proaches the coin standard, the more
satisfactory it is to the people. II
should be the equivalent of coin and
interchangeable with coin at the will
of the holder, and receivable for all
public and private dues. It's volume
may, with safety, on, this basis be in.
creased to the legitimate demands of
the business interests of the country ,
beyond that it cannot be made to
promote the general prosperity.
There has been since 1868 only a
very trifling contraction in the cur
rency, taken at its face value, In
that year the whole currency circula-
ton was s720,412, 6o2.75. 1t is now
at face value, $6sS,597,275.27, show
ing dimunition ia nominal value of
only S31, s15, 327.4S. The real value
of thelcurrency in 1865 was $505, Oo0,.
234.52. The present value or power
OF the currency is 1854, 465, 691. go ;
thus exceeding the purchasing power
in 1868 by the sum of Sl79, 456, 457.1O;
showing that, in the last ten years, the
appreciation of the currency has CON-
pensated for the contraction and
Sl46,64l,129,62 more--its business
power being greater in this sum than
it was in 1868.
9th. Very nearly the whole appar-
ent difference between the paper cir.
culation in 1868 and 1878 is accounted
for by the withdrawal of fractional
currency, for which subsidiary silver
coin has been substituted, but which
is not included in the foregoing table.
Add the subsidiary silver circulation
to the fractional currency outstanding
the differeuce-fsce value between
1868 and ls7S-will be less than three
millions of dollars, while the purchas.
ing power of the currency at the
present time will exceed that of 1868
by more than $3.50 .OOO. OOO. 90.