Savannah morning news. [volume] (Savannah) 1868-1887, 1882-05-17
Deprecated Coin and Dead Notes

Boston Advertiser.
The use of money diminishes its
amount. Coins wear down and lose
part of their weight and consequently
Of their value. Paper money is easily
lost aud quickly destroyed. There is
an interesting field for speculation IN
estimating the relative economy of the
two kinds of money. OF course there
is no absolute rule, and no regular rate
of depreciation and loss. Statistics
which may be relied upon are not to be
had, either now or hereafter The
most that can be done is to compare
supposed facts based upon careful esti-
mates. The Cincinnati Gazette has
lately returned to it's old proposition,
that the use of coined money is wasteful
and extravagant, besides being a super
stitiOD and a relic of barbarism. The
text for its recent hOmilies is the estimate
of loss by light gold in Great Britain.
Mr.. Martin, upon whose estimates the
Gazette relies, proposes a correction by
an allowance of one grain for twenty
years wear of a sovereign, and half a
grain for ten years wear. The weight
of a sovereign is fraction above 1913
grains. A loss of one grain is a reduc-
ton of .S12 Of one per cent. If this is
the depreciation in twenty years the loss
would be one per cent. in a little less
than twenty five years, or one twenty
fifth of one per cent per annum
The British post office finds the loss on
light sovereigns, taking all which come
in, of all ages, to be nearly one and one.
quarter per cent. On half-sovereigns
the loss is slightly more than two per
cent 1t would not be fair, however. to
take this as the average loss on the coins
in circulation, since everybody passes
the most worn coins first, and it is only
when light coins get into the public
revenues or into the banks that their
further circulation is stopped. At all
events, the depreciation of the coins re-
ceived by the British post Office cannot
be supposed to be less than the average.
Let us now compare this depreciation
with what we can ascertain as to the loss
on paper money. In August, 1861, the
United States emitted fifty million dol
lars in treasury notes, payable on demand
in gold. Up to March 6, 1862, there
were issued $50, 030,000 Since then
every one of the notes paid in was can
celled and destroyed. The premium on
gold soon appeared, and these notes,
being as good as gold, ceased to- circu-
late. The redemption of them has been
diminishing at a rapid rate. In 1870
there were still $1,000 outstanding.
In 1875 there were SIC, 900; in 1880
there were SCI 900, the redemptions in
the years 1S79-80 having been only 1896
The chances are that not $4,000 more
will ever be presented for payment; but
ff ho1f 0f
ing should be presented for payment,
the loss would be one twentieth of
per cent. as result of only five months
circulation. The first issue Of legal tender
greenbaek notes began April 2, 1862
and ceased April 10, 1869. In that time
the whole amount of notes issued was
5000, 321 $40. Since the latter date no
greenback of that issue has been put
out by the Treasury, but whenever a
note was received one of later issue
was substituted for it. Consequently
the redemption has been going on for
thirteen years. In 1880, eleven years
after the issue had ceased. there were
still outstanding SIS, 1888 ,361, which was
nearly per cent. of the whole. It
should be remembered, on the one hand
that there were no time when even two.
thirds of the total issue was outstand-
ing at the same time. and that the aver
age amount in circulation during twenty
years has not been more than $780,
100000; and on the other hand, that
there is chance that perhaps one half
or two-thirds of what is yet unredeemed
will yet be presented for payment. But
loss of five millions only would be
greater than the estimated loss upon
British coins
Consider, too, the loss on fractional
currency. The first issue was emitted,
beginning August 81, 1869, and ending
May 81, 1868. In that time $40, 215, 635
were issued. Since the latter date none
of the issue was emitted, and for the
past six years every fractional note of
every issue has been actively redeemed
with silver. Yet there were still cut
on the Both of June, 1880, no
less than 81 284, 1853, or more than one
fifth of all that were ever issued. More
than one eighth of the second issue, the
emission of which ceased in 1867, is still
of the third issue less than
three and one-half per cent. of the
fourth barely more than two per cent,
and of the fifth about the same. 1t will |
be seen that the length of time the notes |
were in circulation bears a definite in |
crease relation to the proportion of them |
showing that it is really a !