River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1881-11-10

year since 1873. The increase is due
in chief part to deposits on account
of silver certificates, which amounted
to S45, 100000.
In referring to the reserve held for
the redemption of United States notes,
the treasurer says there is no pro-
vision in the law requiring specie re-
serve for the redemption of United
States notes in preparation for resump-
ton of specie payments. The fund
was created in the treasury under sec
ton of resumption act rs, by the sale
of 500, SOC, 900 in bonds and the accu-
mutation of surplus revenue to protect
outstanding notes. The amount of
this fund has never been definitely
fixed, but it has been main
tanned at about 40 per cent.
of United States notes outstanding. 1t
has usually been assumed that the re-
serve of 40 per cent is sufficient for the
protection of United States notes, but
under the method of computation the
reserve is not merely 40 per cent. of
the liability represented by the United
States notes, but also 100 per cent. of
all other liabilities. So far as gold and
silver, and clearing house certificates
are concerned, it is necessary under the
laws authorizing their issue that thier
full amount be set aside in gold, silver
and UL ted States notes, respectively,
in funds /, their redemption, but as to
other liabih . there is no such obliga-
ton as this, and it is submitted that no
higher reserve is required for their pro-
lection than is required for the protee-
ton of United States notes. In the
changed condition of trade and COM
merce, unless some calamity shall over
take the nation there seems
to be no probability of run
The total demand for coin i'll redemp-
ton of U. S. notes aggregated, since
resumption, but $2,029,0S6, and no
notes whatever have been presented
for redemption since February 1881.
Should there ever be run on specie
reserves, treasury United States notes
will be made the basis of demand and
not other matured obligations which
compose very varied current liabilities
of the government in excess of assets
over demand. The liabilities of the
government other than United States
notes, is shown by tabulated statement
to be $40, 4&3,4 91. Considering these
liabilities as a whole, the treasurer says
it is clear that whatever percentage of
reserve will protect United States notes,
will protect other liabilities. The
treasurer does not attempt to say
what this percentage should be,
but he is of the opinion that
a uniform percentage should be
fixed for all current liabilities other
than the three classes of certificates,
and that the excess of cash in the treas
ury should be expended from time to
time in the purchase or redemption of
the public debt, according to some
definite and publicly announced plan.
| Should this be done, the policy of the
department would be to close the sub
ject of speculation and influence, and
the treasury money market would be
| reduced to a minimum. During the
last two years there has been steady
increase in outstanding notes of de-
nominations of $50 and under, and q
proportionate decrease in notes of high
er denominations, the hundreds alone
excepted.
The total amount of standard silver
dollars coined to September 80, 1881,
under the act of February %, 1873, is
$98, 322, 705, of which nearly "a per
cent. is in circulation and the remain
der in the treasury.