The Canton advocate. [volume] (Canton, D.T. [S.D.]) 1877-1897, 1881-11-10
$500, was paid by means of 3O5, Jos

foc,'o was pulu ny HleaIls VI OOO,luO
checks.
National bank notes received for re.
demption during the year were $780,.
650,259. The aggregate redemption
under the act of June 80, 1874 have
been 81, O99, 634,772.
Comparing the condition of the treas.
ury Sept. 80, 1881, with the condition
of the same day last year, the most
striking changes are in the Increase Of
gold coin, and bullion, an d standard
silver dollars and silver certificates out.
standing. Deducting gold certificates
the actually outstanding gold belonging
to the government, September
80, for the last four years, was
$l12,602, 500 in 1s7S,$154, 1857 ,371 in 1879
$12S, 1G0,O95 in 1880, and $3.50, $50, SAG
in 1881. Gross amount of gold and sill
yer coin and bullion held BY the treas.
ury without regard to the obligations
outstanding against it, ranged from
$163, 800, 444 in 1878, to 1929 SOY 800 in
1879. to 214, 80S, 215 in 1880, and 1862,
| 7O6,99S in 1881. Increase last year
$50 40O, 1000, of which $39, $780, 900 was in
gold, and $16,250,000 in silver. The
increase in gold was greater and in sill.
yer less last year than any year since
the coinage of the standard silver dol
lars began.
United States notes on hand slightly
increased last year Notwithstanding the
urgent puplic demand for notes for cir
culation. The amount on hand above
the amount required for the payment
of clearing house certificates, was
$50 100000 against SIS, 900, 600 one year
ago. The practice the past year has
been to make 10 per cent payments in
silver dollars on certificates, 40 per cent.
on gold coin, and so per cent on notes.
To this rule there is one important ex-
ception. Under an arrangement be.
tween the treasury and New York
clearing house, all payments by the
treasury to'this institution, aggregating
$25,OOO,OOO a year, must be made in
gold coin or United States notes, stand
ard silver dollars not being receivable
under its rules, although silver certif-
Gates are now being paid it by the treas
ury to some extent in large denomina-
tions, III lieu of gold coin, for use in the
payment of customs due. Aside from
any personal views as to the expedi-
ency of reviving silver dollars, the
treasurer says it would seem unwise for
any branch of the government to en-
courage an arrangement by which coin,
which the law has made fully legal ten
der, is discredited.
Gross assets Of the government, in
Guiding funds held for redemption in
gold, silver and currency certificates,
1881 1881, 2l0, having increased more
than $64 100000 last year, and is larger
than on the corresponding date in any
year since 1878. The increase is due
in chief part to deposits on account
of silver certificates, which amounted
to $45, 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 3 of resumption act rs, by the sale
of $95 100000 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 United States notes, respectively,
in funds for their redemption, but as to
other liabilities 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 protec-
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
on the reserve of the treasury
The total demand for coin in 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 $140,4&3, 491. Considering these
Liabilities as 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
q 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
would be to close the sub
ject of speculation and influence, and
the treasury money market would be
reduced to q minimum. During the
last two years there has been steady
increase in outstanding notes of de-
nominations Of $40 and under, and
decrease in notes Of high
er denominations, the hundreds alone
excepted.
The total amount of standard silver
dollars coined to September so, 1881,
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