Savannah morning news. [volume] (Savannah) 1868-1887, 1882-03-02
Lost Paper Money.
Chicago Tribune.


One of the points involved in the con-
troversy at Washington over the bills
providing for the continuance Of the
national bank system is, whether the ex-
isting banks, as their present charters
expire, shall be entitled under new char.
tiers to merely continue the old banks, or
whether the old banks shall wholly cease
to exist and their affairs be wound up as
of defunct institutions, and the new
banks begin as institutions wholly dis
tinct from the old ones. A reason for
terminating absolutely the existence of
the old banks is, that they will have to
deposit with the Treasury an amount of
money equal to their outstanding note
circulation for its redemption, and in
this case a sum equal to the amount of
notes not presented for redemption will
inure to the benefit of the government.
The probable amount thus to be made
by the government is variously estimated,
same persons claiming that it will be
very large.
As an Indication, whatever its value,
of the probable amount or percentage
of paper money in general circulation
that is or may be lost within period of
years, we take from the report OF the
Treasurer of the United States a state
ment of the amount of United States
notes issued since 1860, the time which
each series was issued before being called
in and replaced by another series, anO
the amount of each series not presented
for redemption up to June 30, 1881. The
first issue was of demand notes, which
began August 26, 1861, and ended
March 5, 1862, something less than
seven months. The total issue was
$50, 030, 900, and was exclusively of fives,
tens, and twenties. These notes were
not legal tender, but were payable in
coin. They were recalled upon the pas
sage of the legal tender act of Febru-
airy, 1862, and in July, 1865, there were
only $472, SOB outstanding. During last
year $40 was presented, leaving in July
last $50, 535 still outstanding. This is
equal to one-tenth of 1 per cent. of the
whole amount issued These notes,
however, were never in general circula-
tion-they were taken and held by the
banks, and subject to but few of the ac-
cidents ordinarily attending paper
money.
The next issue was Of the first series
Of legal-tender notes. The issue began
April 2. 1862, and continued until April
49, 1869, period of seven years, during
which there were issued 5000, 321 .676 in
denominations of 81, So, So, $40, $50,
$50, 800 and 81 900. No less than
1856, 0O0, 900 was issued in 81 900 notes.
the bulk of the remainder being in SIS,
$40 and $50 notes. These notes were
in universal circulation, being practi-
cally the only money of the coun-
try. In April, 1869, the further issue
of notes of this series was stopped.
the notes as they were received
were Cancelled, and others of a new series
were substituted The work of redemp.
ton and cancellation has been going on
since that date, and on June 80, 1881
after twelve years redemption and nine
teen years circulation-there were out
standing only $14, 169, 800, or slightly
over 2 per cent. of the whole amount
issued. During the last fiscal year
81, 1888 501-including forty three notes
of 81, 900 each and sixty-three of $500
each-were presented for redemption.
OF the amount outstanding, more than
10000, 900 are in So, $40 and $50 notes
The probabilities, therefore, are that not
exceeding per cent. of these notes will
fail to be presented in due time.
In 1869 was begun the second issue of
legal tender notes, and this issue was dis
continued July %, 1874 During this
period-less than five years-no less than
$493, 1928, 132 of notes were issued. and
in July, 1881, after seven years of re-
demption, there were outstanding 49,
567. 429. The redemptions during 1881
were $13, $40, 612.
There were issued from July 10, 1874,
to September 10, 1875, new notes to the
amount OF $87, 1868 600, of which $17,-
$40, 321 were outstanding in July, 1881
and from July 90, 1875, to June 90, 1879.
there were $3.50, 688, 900 notes issued, of
which 49,, 531, 1853 were outstanding in
July last. A recapitulatiOn of these de-
tails furnishes the following result:
n,sS. Il.