Mexico weekly ledger., 1878-11-07
ONLY 25C
RESUMPTION.

RESUMPTION.
A late letter from Mr.. Sherman to
Mr.. Dodd, Of Michigan, made public
on the eye Of election, evidently for
the purpase of influencing votes, in
forms us that the per capita paper
currency OF the nations enumerated,
il a. follows.
COUNTRIES. CALCULATIONS. p. cAPIrA.
France. $3.50. 907, 900 SEAS
Great Britain. 2l3. 986. 600 6.s9
Germany. 14S,9 els 900 346
Uaited States. S88, 697. 27s 1895
He does not, however, tell us how
mnch money, including coin, these
nations have in use. According to
the best calculation that. we can make
from data accessible, there must be
at least $50 per capita in France,
SO per capita in Great Britain, $23
per capita in United States.
Mr.. Sherman is famous for state
ments presenting views favorable to
his policies. 70 have giucn the whole
truth would not have answered his
purpose. In France coin constitutes
half the money of the nation; in
England it embraces nearly two
thirds, but in the United States it
amounts to only one-third.
The secretary also expresses the
opinion that there will be in the treas
ury, on the first of next January,
$134,231,865 in coin applicable to
redemption of greenbacks. w have
no means Of verifying this estimate,
but, admitting its correctness, it will
amount only to about one-third ofthe
greenbacks outstanding.
The old United States banks, and
the stste banks that succeeded it, were
at one period of our history looked
upon by inanceers as in a safe condi-
ton when their circulation did not
more than treble their reserves. From
the statement put forth, Mr.. Sherman
seems to have adopted this ratio; but
the experience of this country has
abundantly demonstrated the fallacy
of any such reliance. So long as
banks kept that proportion OF coin In
their vaults they were safe, but as
soon as o considerable run upon them
ensued, the fraud Of the estimate was
exposed. When, for instance, q bank
having $500, 600 in circulation based
upon a coin reserve of 500, 600 re-
deemed $50, 900 of its notes, it was
LEFT with $250,0 900 outstanding and
CSC, 900 in coin, and was in a failing
condition. This showed conclusively
that the solvency Of q bank of issue
does not depend upon the ratio of
reserve to outstanding circulation,
but upon its ability to keep on hand
at all times enough coin to meet ac-
tual demands.
We are now prepared to examine
into the real worth Of Mr.. Sherman's
statements; he informs us that his
present coin liabilities amount to
$s8,427, 7s1, without including green
backs-when these are added they
are fn~-'i to be in all $445, 190,877
to L. e. which he has accumulated
$685. & ,i46 in coin; this is a re-
serse G. over one-half, but he expects
maturir liabilities to reduce it to one
thir6 by tie beginning of the year.
Atsi cvents that will be the ratio Of
the ] 81 y relied on to float green
bacf. them at par. Mr..
psAE 99,stxaaa Aca.nszznssszn<s
Sheru s.G, as We n.,J animated, pa
radtt figures to confirm hope
that 10 al be able to maintain re-
snmlI =, but does not tell how he
enoposs- 10 rensw his coin ratio
when It shall be reduced below his
standard by considerable coin de-
mands liable to be made at any mo-
ment 3a1s I
We ere told that thepresent bonded
debt Il u, s07, 1884, one year ego
Il Was 41,717, 043, 500; this shows an