Mexico weekly ledger., 1879-08-28

-O-A' ''e OF LOUIS hcpuDIiCan.
An Official statement prepared by
the treasury department, showing the
amount OF paper money in the United
States each year since 1860, affords
an interesting picture of the growth
OF the paper IN ,ney circulation. Prior
to 1862 there were no Greenbacks.
and prior to 1864 there were no ma
tlonal bank notes the paper currency
consisting entirely of state bank notes.
When it was decided to issue green
backs it became necessary to expel
the state bank paper from the field
that the government legal tenders
might take its place; and this was eff
fected by imposing tax of 10 per
cent. on all bank notes issued by
state institutions. There is now only
$342 ,452 state bank notes outstand-
ing, and this consists of bills issued
many years ago and probably lost or
destroyed. In 1860 the total paper
money in the United States was
S2O7, 1O2, All, consisting, as we have
said, entirely of state bank notes.
In 1868 the amount had increased to
S238, ,677,213. In 1862 the first lot
of greenbacks. S96, ,620,O 900, was issu-
ed, and two years later the first lot of
national bank notes, S31, ,235, ,279,
was issued. The greenbacks we're
increased till 1865, when they reach
ed their greastest circulation, $432.-
1896 From that they have de-
clined to $346, ,681, ,O16, which is the
amount in circulation at the present
time. The national bank notes grew
in volume from S31, ,235, ,270 in 1864
to 1854 405, ,O0S in 1875, which is the
largest circulation they attained.
From that year to 1877 they declined
to $317, ,048,872 but it is a singular
fact that since 1877 they increased
first to SS24, ,514,294 in 1878, and
then to 1928, ,691, ,697 in the present
year. The fact Is interesting because
it shows that in addition to the coin
set free by resumption, the country
has managed to absorb about $l2,-
500, 900 more paper money than it
had use for two years ago. The total
paper money circulation increased
from s2O7, ,l02. AIT state bank notes
in 1860 to 1888, 318,6 ,685 notes of all
kinds in 1865. From that time it de-
clined, and at the present time it
stands at 1874, sol, 1894, which is three
times the amount in 1860.
Not the least important fact
brought out in this official statement
is the variation in gold value of this
mass CT paper money in circulation
from 1852. With the suspension of
epecie payment in that year the paper
money of all kinds began to deprecl-
ate IN its purchasing power. The low
est point was reached in 1864, when
a greenback dollar was worth only
til. "ty- eight cents in coin, and the
whole $3.50, ,7iS, ,9s4 paper money in
circulation lad a coin value of only
1922 ,649, ,246. This was the time
when prices were most inflated, as it
is called, it being necessary to iuhate
the prices of property to correspond
to the deprecated currency. But n
1864 there began aD appreciation of
this paper money, the process gong
steadily on till the 1st of January last,
when the greenback dollar became at
par in gola, SO that the paper circu-
lation, which in 1864 was worth only
1922 ,649, ,249 in gold, is now worth
1884 ,S01, 1894. This doubling the pur-
chasing power of money has been at
tended by that apparent depreciation
of all other property which we miscall
'shrinkage of values"