The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1880-07-02
MoNlY MAKING AND MONEY SAVING.

is quite another and more difficult
task to save it, or rather to create a
surplus and wisely invest it. Proba.
bly, the most gigantic money making
scheme on record in this country is
that conceived by the Government
at the inception of the war, and which
resulted in the printing and circnla
ton of s5O0,OoO, 900 of paper money,
declared to be legal tender, and SO
received in most OF the States. What
ever may he said about the legality
of that issue, il is generally conceded
that it was forced loan, rendered
necessary by the exigencies of the
case. In this emission there was
some SAC, 100000 to $50. 100000 frac-
tional currency. The war drove sil
yer coins out Of existence, and most
of them went to foreign countries.
Canada was especially bnrdened with
them, so much SO that they were at
last received with a discount. To
provide for change, the Government
authorized the use of postage and
revenue stamps, and on March 8,
s63, Congress gave it's authority for
the issuance of postal currency in
the denominations of SC, 10c, 25 and
soc notes. The maximum amount
was fixed at $50,0OO,oOO, including
the aforesaid stamps. There was
$40, 100000 of this paper issued dur
ing the first year, and more or less
for every subsequent year until 1876.
The largest amount outstanding al
one time appears to have been $45,-
ssI, ,296. On The goth April, 1876, a
law was passed authorizing the re-
demption OF this paper money by
giving in exchange silver coins of the
same denominations, except halt
dimes, the coinage OF which was dis
continued in February, 1873. The
amount of fractional paper currency
outstanding on the LIST June, 1880,
according TO the report OF the Seere
tary of the Treasury, was $l5,592,,
934. In round numbers, therefore,
about s27, 100000 has been redeemed
and cancelled, and silver coin given
in exchange.
Careful estimates show that the
average lite of his fractional currrn.
cy is fifteen months. When the
outstanding was from. S4O,-
100000 to S45, ,ooo,o 900, it was found
necessary to print about $36, 900, 900
annually to replace ta,te-cd anl torn
notes. The expense attending this
work was reported at Sl,4iO,746 per
anDnm, exclusive OF the erost of hand.
ling. In tact. this item was adduced
AZ an argument for changing to silver
coin, it being conclusively shown
hat it was far less expcisiveto MAIN
lain fractional dollars in silver than
10 paper, as the natural abrasion on
silver coin was not over l per cent.
in fifty years. Fractional paper cur
rency was used in this country for
thirteen years, say from March, 1868
10 April, 1876. We have never seen
any estimate of the cost of maintain.
ing this currency for that period, be-
yond the estimate given for one year
after the Issue had reached from
$40, ,O00. .00Oio S45, 100000. This was
for the fiscal year ending June 80,
1875, aud, as before remarked, was
81 l,4lO,746. Calling it only half that
or. in round hunters, $7O0,-
900 per annum, the cost for thirteen
years would he $9,lOO.00O for furn-
ishing change money tor The people.
But as the expense was met by siInl-
|y an increase of paper issue, the real
rost was nominal, except as that pa
per is eventually redeemed in coin.
Some of this fractional currency il
being srnt in almost daily for redemp.
lion in dilapidaied condition. Dur
ing the month of May sll.65s was
aud since the LIST January,
ssl 1860. The public debt statement
for June LIST charges the Government
with Sl5,592.934 outstanding. 1t
would be difficult task to find even
81 100000 of this amount. The last
report of the National Banks for
April %, 1880, showed that they had
only $395, ,738 ia fractional currency
United States Treasurer Giltillan had
only S5s, 900 on he Ist June. Thus
S453 74S il all that can he traced.
There may be 100000 more in the
hands of the people. 1t is now up-
wards of four years since the print.
ing OF these notes was stopped. III
the average life of this currency is
only fifteen mouths, it is easy to ac-
count for the difference between the
known to he in existence and
the amount charged as outstanding