The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1879-12-01
OUR MONEY SUPPLY.

There has never been period in our
history, not counting the war times, when
our country has had so great supply of
money as at the present time. Nor has
there been at any time in any country
any better money than ours is now.
This is great thing to say of any peo-
pie. 1t argues degree of unusual pros
perity. For, so long as the money OF
country is sound and secure, not ficti-
tious and fuctuating, the more there is
of it the better. When the money sup
ply is ample, like the food or fuel supply,
it is incapable of being controlled by
monopolizing combinations of capitalists
The legitimate business of the country,
consequently, proceeds with steadiness
and confidence, exempt from spasmodic
contractions and mutations caused by al
ternate locking up and releasing Of
money for speculative purposes.
The report of the Controller of the
Currency shows that the greenback cur
rency outstanding amounts, in round
numbers, to $347 100000. The National
Bank currency amounts to $685., 10000
thus giving paper circulation of 1884,
100000. Of coin, the Treasury holds
$15S, 200, 600 of gold, and $50,O0O,0O0 OF
silver. On the 1st of November the banks
held $43,0OO,000 of coin. The amount
of coin held by the people of the country
at the same date is estimated by the Di-
rector of the Mint at 1921, 100000. We
thus have money supply of $780,
10000, which is equal to almost $26 per
capita, counting our population at 49,
100000.
The recent influx Of European gold
has added $67, 100000 to our coin cur
rency within the year. The bank issues
have increased about $5,000,000 since re-
sumption was established. The Govern
ment has just bought $1O,0O0,O0O of its
immatured bonds, which, at premium
of 6 per cent. paid, added $1O,6OO,OOO to
the volume of the currency in the hands
of the people. The result of all this is,
that the volume of our money is now
one-third greater than it has ever been at
any time previous to resumption and the
present revival of business. The increase
of our none" supply is, moreover, likely
to continue by the large amounts pour
ing in from Europe, so long AS we Car
maintain our present favorable balance
of trade.
Some political economists among IL!
are prone to look with distrust, amount
ing almost to alarm, upon this enhance
ment of our money supply. But we car
not share in their fears. They apprehepe
another era of wild speculation and wide
spread ruin. That there will be Il grea
activity in speculative property can no
be doubted That is always incident to al
easy and af1luent money-supply. 1t may
even be considered as necessary Incl
dent. Men of capital will always bt
found willing to place money on thei
own judgment of conjectural values as tt
stocks and other public securities. Some
will doubtless be ruined by their mis-
takes. Others will not. But this can no
affect the public. The amount of ou
} money supply, by which all Legitimate
business is maintained, can not be dimin
ished by such individual mishaps
Moreover, such speculations must have
their limits. 1t is not at all like former
: speculative operations founded upon {
fictitious basis as to the value Of money
itself. Our money has now fixed de
terminate value. Every dollar is gooc
for any other dollar. By these fixed dol
lars all values become determinate ano
fixed. And by this fixedness of values
speculations of all kinds must find thei
limits. Stock gamblers may buy ant
sell and get gain. or be ruined; and i
matters not to men engaged in othe
business. The money supply remain
{ equal to the wants of their trade; anC
hence they can look upon such operations
D in stock-gambling with indifference.
t In confirmation of our views in this re
gard, we may cite the instance Of las
: weeks furry and stock-panic in New
y York. By the sudden break in price
e hundreds of spectators were made bank
;. rupt. Failures among them came thicl
: and fast During the same time ther
8 was but one single commercial failure
= and that in no wise connected with th
{ stock-market operations. The healthfu
{ and substantial business of the city wa
;, not in the slightest degree affected by tn
E collapse of those stock speculations i
o Wall street.
e Those financial expounders who appre
' hend evil to the country from this growt