National Republican., 1880-08-12
FRAcmoNAL PAPER CURRENCY.


The New York Times of the 9th instant
contains an interesting article on what tho
writer terms The Shinplaster Money" We
object to the term shinplaster rs applied to
any money issue by the government and
redeemabo at the treasury. The epithet was
invented to characterize the worthless notes
of wildcat banks; hence il does not properly
describe currency which is redeemable at
its full face value. The Times informs us that
from August 81, 1862, to February 26 1864, the
government issued fractional paper currency
to the aggregate amount of 1865, ,72i 079.4
and that since the work of redemption began,
$553, ,142, ,431 has been redeemed, leaving $15,-
5S1 ,64S45 still out The bulk of this fifteou
and a-half millions is of the earlier issues,
from which, taken in connection with the fact
that the return Of this currency to the treas
ury has almost ceased, the conclusion is drawn
that this latter sum represents lost or do.
stroyed money. If this be true the govern
mont has made a net profit Of nearly three
per cent. on the gross amount of its fractional
paper issue, allowing something for the cost of
engraving and printing. This loss was sus-
tanned by the people, of course; but Thilo
the people lose 1t as individuals they gain it
as nation. This is not true of silver coins;
hence on the score of economy the paper cur.
rency has greatly the advantage over coin.
The chief argument, however, in favor of u
fractional paper currency is based upon its
convenience as a medium of exchange be-
tween men separated by great distances and
doing business through the medium of the
mails. The Times writer justly says:
Those who are compelled in the course of
their business to send small sums Of money by
mail find coins very incOnvenient. They
make the letters too heavy, aud besides they
are liable to be lost out in transit. Postage
stamps are not always readily obtanable, and
besides dealers do not care to have the bulk
Of their receipts In portage stamps. we'll
known dealer in flower seeds estimates that
the disappearance of fractional paper cur.
reucy has caused him loss of $4,000 per
year.
Newspaper and book publishers suffer
largely from the same cause. Did the loss
fall wholly upon dealers and publishers the
general public would care little for it, But
when it is considered that the people want
aud need the seeds and papers aud books ana
thousands of other mailable article S, to pay
for which requires fractional parts of dollar
the great demand for fractional paper cur
rcncy begins to be appreciated. Tho chief il
not the sole objection to paper currency ID
found in its liability to be torn, or otherwise
mutilated by use, or TO be lost. We have al.
ready seen that this is more than
compensated for by its great convenience,
We now propose plan by which
this objection can be overcome or measurably
obviated. Let congress authorize and require
the United States postolice department to fur
nsh a convenient paper currency of denomi
nations of five, ten, fifteen, twenty-five aud
fifty cents. Lot this be kept in any postollicC
the same as postage stamps, aud let 1t be re-
deemable at its face value In the standard cur
rency Of the country ut auy money order post
Office or in postage stamps at any postoflice
The volume ofthis currency could not go beyond
the demands Of trade, hence the country
would be in no more danger from initiation
from this than from postage stamps Its cos
would be traing, and although constant re-
demption would bo going on, yet there can be
but little doubt that the loss fIom various
causes would be sufficient TO cover the cost ol
issue. That, however, is not worth consider.
ing. The postolllce was not established for the
purpose Of making profit to the government
but for the convenience and benefit Of the
| people. In connection with it VIC have what