The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1879-12-04

Tho old forms of tables, giving the amounts
and kinds of currency in circulation, are now
obsolete, and must be superseded by new ones,
which shall include not only the paper currency,
but also the coin of the country. The total
amount Of the circulating medium can not, for
this reason. be hereafter accurately given, such
total being affected by estimates Of the amount
of coin in the country. The latter amount is
estimated by the Director Of the Mint to have
been $427 900, 900 on the first day Of November
in this year, of which amount 1921 900 900 was
In silver coin. If this estimate is correct, the
circulating medium on that date was composed
rs follows:
treasury notes outstanding;----.-...sS4s,6 ISL ,o1S
National bank notes outstanding. ...... ..... 337, I91, 41S
Gold in the Treasury, less certificates
held by the l6I,s60,l9
Silver In the Treasury o~U,U76,6zJ
Coin in the banks October 2d)-... 42,173,741
Estimated amount Of coin held by the
people .....- 2S1,47S,5lo
Total " ,165, 553 ,504
The stimated.t total currency of the country
on November LIST thus appears to have been
more than $l65 ,000, 900, which amount is at
least $3.50 900 600 in excess of the highest point
reached between the suspension and the re-
sumption of specie payment.
Notwithstanding the large increase of specie
in the country during the past year the amount
held by the banks has by no means increased
in proportion. The amount held on October I,
1878, was 1906 sos on the first day of Jam
uary, 1879, $41,499, 757, and on the second of
October last, $42, 173, 1872, showing an increase
on that day of not less than 500, 900 since re-
sumption day. The more recent returns, how
ever, of the national banks in the city of
New York to the Clearing House for the week
ending November Is, show a further increase
of $2l ,239, 400. The amount of cash reserve
now required to be held by all Of the banks is
less han $94, 0Oo, 00U.
From this statement Il will be seen that the
banks outside the large cities held, on October
2, 81, 474, 961 Of specie, which nearly equals
three-fourths of the full amount of cash reserve
which they are required to hold, while the
banks of New York and in the ether principal
cities held in specie considerably less thar one
half of their legal cash reserve.
The Controller urgently recommends that
all the national banks shall take advantage Of
the present influx OF gold to accumulate in
their vaults an amount equal to the total cash
reserve required by law. He INDUCES the
hope that tho reports of another year may
show them to be possessed of atleast 800, 000,-
600 of gold coin. If this coin, which is still
flowing into the treasury, shall also be largely
accumulated by the banks, it will be moIe
likely to become diffused among the people.
Resumption has made the dollar OF the same
value at home and abroad. The refunding Of
the debt has placed funds in the hands
of such holders as have declined to re-
invest in the four per cents. The gold bar
vests, the shipment Of produce, the large an
nual production of gold and silver from the
mines, and the importation of gold which still
continues will certainly make money abundant,
and have already stimulated speculation to an
unhealthy degree, and will be likely to do SC
in the future. Not long hence, the specie
which has SO long been boarded, or which has
hitherto been used only in the payment to the
Government of duties on imports or in the
purchase of foreign exchange, will be brought
into general use. The effect Of the present in
creasing and prospective redundancy Of cur
rency Is manifest in the transactions Of the
Stock Board during the last three months,
which are said to be the largest on record, one
fourth of which are estimated to have been
based upon stocks which pay no dividends.
After quoting an extract from a late ad-
dress by Leone Levi, at Kings College, Lon
don, the Controller winds up his report in the
following language:
History repeats itself; and the experience
Of England, and of Germany, and our own ex-
~perience in former days, seems not unlikely
again to be repeated in this country. A cur
rency which will adapt itself to the existing
circumstances is particularly needed at the
present time, and it will be the province Of
Congress to wotch carefully the indications Of
an excess of paper money, and to prevent by
proper legislation the mischief and danger Of
q redundant and non-elastic currency"