New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-27
.SN1LL Hills IND COIN.

About per cent OF tie entire amount of
legal tender and national bank notes out
standing now consists Of one and two dollar
notes. The report of Controller Knox, which
sets forth this fact, also shows that there has
been an increase in the whole amount Of these
small notes outstanding, in spite of decrease
in the amount issued by the national banks.
Since the resumption of specie payments these
banks are not permitted by the law to take
out new notes of less than So each, so that
their circulation of such notes has steadily
diminished from S7,71S.747 to $3,499, 500.
But the demand for small notes has been met
by increased issues of lega-tendcrs from the
Treasury, so that while the amount of one and
two dollar bank notes has decreased
%4.219.O25, the amount of such egal-tenders
outstanding has increased $3,491 ,5S4, and
wholly within the last year. Ii is noteworthy,
TOO. that there has been marked increase i'll
the amount of 50 notes outstanding, and
mainly IN legal-tenders. The banks have
taken out in additional So notes 81 ,99S, $40,
while they have had retired 50, 159,976 in
one and two dollar notes. during the past
year. But the amount of So lcgal-teHdrr
NOES outstanding has increased $J,521, 100
during the year. and at the same time
the amount OF enc and two
dollar legaI-tender notes has increased
from S3S,25S, 667 November l, 1879,
to S43. 7S4,21S November l, 1850, or
$5,525.551. Thus the steady reduction in
amount of small notes outstanding. which
had been going on for some years prior to
the date of the last annual report, and which
was considered a favorable feature Of the
financial position, has now been arrested.
All competent Gnanciers and economists
have agreed that it was desirable to bring
coin into more general use, so that in any
tine of emergency the metallic reserve in the
hands of the people should be large. All
agree. also, that this cannot possibly be eff
fected unless room is made for coin by with
drawing small bills. The use for small money
is not susceptible of indefinite expansion, as
is the use of money instead Of credit in the
larger dealings or boards Wholesale traffic,
in its use of money, is like a great river,
through which all the water that may be
poured into it will flow. But retail and
pocket use of money is like a pipe of GER
tain size at any gwen time it can carry only
a certain quantity of liquid, and if we have
filed il with water we cannot get in any OIL
To whatever extent, at any time, we fill the
pipes of circulation with small bills, to that
extent we cannot get in coin.
The capacity of a country to use small
money is not stationary, however, but changes
slowly with the condition of the people and
the activity of trade. OF this we have proof in
the fact that this country during the past
year has absorbed a large amount of cOin
although, rs we see, it has at the same time
added So, 365,575 to its small note circula-
ton. In the report of Treasurer Gilfllan, it
was shown that S12,256.S02 in silver dollars
had entered into the circulation during the
past year. The amount of 81 and So 30 gold
pieces which has entered into circulation is I'M
known but is not large The amount of small
notes (of 81 or 50 each) and OF silver dollars
in circulation on tue LIST Of November for
three years past has been: