Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1884-12-12
Our Coming National Currency.

Unless all signs fail we are approaching
the time when bank notes will disappear
from circulation, and when the only cur
rency OF the country will be United States
coin and United States paper money.
The circulation Of State banks was long
ago taxed out of existence That of the
national banks has diminished during the
past year by about 1915, 100000, 50 that, al.
lowing for notes surrendered for redemp-
ton, 1t amounts at present TO only 1899 ,O00,-
900. The bonds held to secure il are $l55,-
100000 of per cents, which are redeena
bic at any time and will probably be called
N during the next two years, $50, 900 900 OF
Al per cents which mature in 1891, and only
Sll7,OOO,OOO of As, running till 1907 BY the
mere extingushment of the national debt,
therefore, the circulation of the national
banks will be reduced in the next six wears,
Il nothing now unforeseen happens, to about
$l0oOOOOOO. By that time, too, the price of
the per cent bonds, on which this remain
ing $l00,OO0,O00 rests, will have risen so
high that 1t will be more profitable to sell
them and use the proceeds than to use the
notes issued against them. This will make
an end of bank circulation altogether.
On the other hand, the amount of United
States legal tender notes, which was fixed in
1878 at $346, 100000 has ever since remained
at that figure. There have been coined also
since 1878 silver dollars to the number of
lS5,OOOOOO, of which Al 100000 are in actual
use, and lO5,OOOOO0 are represented by silver
certificates in the hands OF the people, leay-
Ing reserve of 100000. Besides this.
$lSS,OOO,O0O OF gold has been coined and
put out since the resumption of specie paw.
menis, Jan. ], 1879, in addition to $4,000
200 then in use, all of which has gone 10
swell the volume of our currency.
These facts indicate clearly the direction
In which things are moving The national
bank circulation is diminishing at the rate
OF from $25,0000 900 to $30,O00,O00 wear.
and by 1891 will be reduced TO 800, 600 600
or, II may be, to less. Our Government cur.
rency, ON the contrary, has increased in coin
and coin certificates alone during the past
SIX years 1894 000,0 900, or at the rate of over
ooOOOO0O year. The working of the
Bland Allison bill adds $2S,000,000 u year,
ana the coinage of gold as much more. The
future increase OF silver and gold coin, aside
from fractional coin may, therefore, be set
down at $56,O00,000 annually, which will
make IN six years an aggregate of 1896. |
100000. We had on Jan. /, 1879, gold COIN |
10 use 10 the amount of $il9 100000 and |
legal tenders to the amount of $346. 900 600 |
we have gained since then 1894, 900 900 in |
coin and its representatives, namely, $lss,. !
OOOOOO gold and $l46,000,000 silver, and |
shall gain In the next six years $33e,OOO,. |
600 more. This will give us by 1891 grand
total Of 81 ,l35,O00,000 of Government cur.
rency, against not more than 100000, 900.
and probably less, supplied by the banks.
VI course, much may happen TO modify
or prevent this result. The conduct OF men
cannot be predicted SO confidently as that of
inanlmate things. The legal tenders may
pe redeemed and withdraw, the coinage of
SILVER dollars may be suspended, and the
supply OF gold may be diminished at the
mines or be drained away to foreign coun.
tries. The decrease of national bank circu.
latlon may, on the other hand, be checked
oy iaVorlng legislation. But the probabili.
les are greatly against these events, and, as