The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1879-12-04


The estimated total currency of the country
on November 1st thus appears to have been
more than $165, ,000, 900, which amount is at
least $780, 900 900 in excess of the highest point
reached between the suspension and the
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 1,
1878, was $50 ,6s8, ,606 on the first day of Jan
uary, 1879, Sal ,499, ,757, and on the second Of
October last, S42, ,173,7 1872, showing an increase
on that day of not less than $700,0OO 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 15, 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 than $94, 900 900.
| From this statement it will be seen that the
| banks outside the large cities held, on October
2, $11 ,474 1851 of specie, which nearly equals
three -fourths of the full amount of cash reserve
which they required to hold, while the
| banks of New York and in the other principal
cities held in specie considerably less than 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 indulges the
!
show them to be possessed ola least 800, ,000,-
| 900 of gold coin. If this coin, which is still
| flowing into the treasury, shall also be largely
! accumulated by the banks, it will be more
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 have declined to re-
| invest in the four per cents. The gold har-
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 so
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 extract from 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 experiences
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 owatch carefully the indications OF
an excesa Of paper money, and to prevent by
proper legislation the mischief and danger of
. redundant and nom elastic currency