Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-08-05
TOO MUCH CURRENCY.

A Republican exchange is in great tribula-
ton at the prospect of an over issue of mon
ey by means of the silver coinage act, and
sounds note of alarm designed to stop what
it calls the mad policy of imitation permitted
by the act. We are really Of the opinion
that our contemporary is needless]y alarmed.
md that the danger of having too much
money is exceedingly remote. A few figure,
aay satisfy those who share in the alarm,
hat there is no cause for uneasiness.
Previous to the panic of 1873, the total
currency of the country amounted to about
twenty-five dollars per capita. It has since
been reduced, by the growth in population
and by the retirement of national bank notes
and fractional currency, to about fourtee,
dollars per capita, counting in all the gold,
silver and greenbacks boarded in the treas
ary. The circulation in France amounts to
fifty three dollars and in Germany to TWEEN
ty-fve dollars per capita, and France is un-
doubleday the most prosperous country in
the world to-day. The present silver coin
age law authorizes the issue of but two mil
lions month, or twenty. four millions
year. AS our population is increasing at
the rate of million year, and our business
in a much larger proportion, and as our
people are constantly increasing their boards,
1T will be seen that by no possibility can the
proportion of circulation to population be
increased under the operations of the pres
ent law, at least during our day and gera-
ton. While the whole volume of currenc,
may be enlarged, it will not be proportional
ly any greater than it is at present.
Have those who clamor so loudly about
the superabundance of currency ever calcu
lated how much is actually required in our
trade and commerce? A single instance will
suffice to give conception of it. The State
of Minnesota will produce for export this
year at least thirty-fve millions of bushels
of wheat. Estimating the average price OF
the cereal at eighty cents bushel and the
cost of transportation to the seaboard at
twenty cents bushel, it will Re seen that
thirty -hve millions of dollars will be required
to move the crop of this State alone. Then
there are other industries that employ CAPT
tai to the extent of at least thirty millions
more. So it will be seen that the SINGLE
State of Minnesota, one of the smallest in
the country, requires on actual revolving
currency circulation of sixty five millions. Any
less sum would seriously embarass our indus
tries. To be sure it may not be
all in use at the same time, but
is coming and going constantly received
for produce and expended for clothing,
household and farm supplies or passing back
and forth between manufacturers and their
employees, between merchants and their
customers and clerks. Unless we should
have total failure of crops and an utter
suspension of business, we will need this
sum almost constantly, and as the country
develops and industry increases we will need
more of it.
There is no danger of too large an in
crease of currency under the present order
of things. More Inconvenience will be felt,
in all probability, from its scarcity than from
its superabundance. If the minis should
coin more silver and gold than the business
of the country required it would not be
called for. and in the vaults of the treasury
it would be incapable of doing. mischief.
We are not at all anxious.