The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1879-01-18
Eject Of Resumption.


The case with which resumption Of specie
payments has been accomplished, not only
without any apparent arrangements OF the bus,
mess Of the country, but as really tending 20
give confidence TO all kinds Of industrial en-
teFprises, has led 10 a comparison between
the amount of currency afloat on the LIST Of
January, 1878, and that available for active
circulation at the same date in 1879. Ac.
cording to the statistical tables the note cur
rency in circulation in 1878 consisted Of Uni.
ted States notes (greenbacks) amounting to
$3.50, 900, 600 and $500, 200, 900 national bank
notes, making total Of S670, 100000. On
the LIST Of the present month, when specie pay
ments we're resumed, there were outstanding
S346, zoo, 900 Of United States notes and
S322 BOG, 900 Of the notes Of national banks.
These together make up paper currency Of
S669, 900, 600 To this amount Of paper mus
now be added, as forming part Of the curren.
cy available for general purposes, SIS, 000,OO0
Of specie held by the banks Of New York,
Philadelphia, Boston and Baltimore, S22,.
100000 of coin interest, payable on January
by the treasury of the United States; Sl2,-
100000 Of coin held by banks in other cities
and in private hands, and 50, 900 of sill.
yer dollars Of new coinage in circulation out
Of the So, 100000 coined during the past
ury vaults on the the first Of the month.
The aggregate OF paper and coin outstanding
at the latter date was therefore ST36, 800, 600,
as against paper currency of 1910, 100000
on the first Of January, 1878. This repre-.
sents the maximum Of currency, but from 1t
must be taken the reserves require to be held
by the banks and the amounts to be paid
back into the treasury during the year in the
shape OF customs duties and held there until
agaia issued TO meet the interest payments as
they occur. Resumption, therefore, whilst
neither materially initiating or contracting the
currency, has tendency TO favor greater ease
in monetary operations. As bearing upon
this question a contemporary remarks that
resumption makes possible future addtionsto
the active circulation FROM coinage. Atpres-
ent we are retaining at home our whole pro.
duction of the precious metals, amounting to
SIS, 100000 per annum. How long this ex.
traordinary course of things may continue it
is impossible TO say. AT the moment there
are no symptoms Of an early change; and it
seems safe to suppose that comparatively
considerable time must elapse before we re-
turn to our former custom Of exporting our
whole product Of gold and silver The
point is also made that whilst we had ia the
beginning Of 1878 $685., 900, 900 of greenbacks
and bank currency, as against S669, 100000
at the present date, irrespective of the coin
now coming into use, the reduction in the
value of commodities, as well as Of property,
to the extent of from thirty five to forty per
cent. within the past six years makes the
purchasing power Of $3.50, 900, 900 at the pres.
ent time equal to that of the $685., O00, 900 in
circulation on the lstof January, 1878. Rel.
atively, therefore our present note circulation
of S669,000,00 without counting the coin
coming into use-has a greater purchasing
power to the extent of S2l9,000,00o than
the SG95, 000, 600 in circulation in 1878. To
this extent then, not through legislation but
by the operation of natural laws, the currency
has greater capacity for use in all its chan.
nels of trade and business generally than it
had six years ago, with tendency to further
expansion as the coinage of silver progresses.