The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-04-06
MONEY IN CIRCULATION IN THE
United STATES.

We owe an apology to our readers
for again referring to the Press and
its article on the currency; but it is
so full of exaggeration and misstate-
ment that we are constrained to
note yet another Point, lest the public
might conclude there was something
i'm it. II says
The main argument upon which
the silver maniacs relied in 1877 is
done away with in the present issue
by the fact that there is now $500
100000 in silver coiu in the United
States largely unused
If this were true it would not bear
out the allegation of our contempor-
airy, that @ the silver system is, in
truth, sooner than its enemies ex-
pected, writing Ichabod over the
financial prosperity of the nation"
meaning the United States. People
who feel the pinch of hard times, and
who cannot make their usual collec-
lions, will be rather surprised to
learn that plentiful supply of money
is an evil and a scarcity of it bless
ing, because there is no question
whatever regarding the intrinsic
value of gold and silver in the United
States, each being legal tender for
| any amount. Has it never occurred
| to our contemporaries that this extra
accumulation of silver, if true, which
| it is not to any great extent, is ex-
| plainable in very natural way.
! Silver being the more cumbersome
metal, would naturally go into re-
serve in the Treasury vaults, and
| force gold into circulation. This in
truth is what is happening to a linn
! tied extent, as was demonstrated by
! the ADVERTISER, April 1st, from the
/ Treasury returns. The gold balance
| in the Treasury January 2, 1884,
stood at 1854, sO7 1913, but it was only
| 1923, 1863, 672 on the 18th of March;
and whereas the increase of gold in
| the Treasury during the month of
/ February as compared with January
last, was $2,861, 1858, the increase of
! silver in the same time was So, PIP, 584.
|
/ find fault with silver for forcing gold
/ into circulation.
! But the Press is entirely wrong in
/ saying that the silver coin in the
| United States is " largely unused. .
| IF it would consult the Treasury state
ments it would see that such is not
I the case. Every silver dollar in the
United States is performing the ac-
tive functions of money, just as every
/ gold dollar is doing, except what may
! be boarded in the conventional cold
stocking" AS our contemporary
does not appear to understand this,
we shall endeav0r to make it clear at
least to any ordinary intelligence.
Up to March /, 1885, the minis had
coined 194, 24T, 1914 standard silver doll
lars under the Bland Silver bill.
There were at the date mentioned
153, SCI, O07 silver dollars in the Treas
ury vaults, leaving $40, 686, 1877 in cir
cuIation as coin. OF the total $42,-
O93,0 56 alone belonged to the Govern
ment, the balance of Sill ,467, 95I be-
ing held at deposit for individuals,
against which silver certificates had
been issued. So that, instead of
there now being d" $500, 100000 in sill
yer coin in the United States largely
unused" as the Press alleges, there
was an accumulation of $40, 093, 056 in
silver dollars which had not gone
! diroof in 70 ri raI1Tat iOu
This is a specimen of the mislead-
ing statements made by our contem-
poraries when dealing with the mon
etary affairs of the United States, and
it is on par with their statements
regarding the currency in this cOun-
try. In truth, so reckless or so ignor-
ant are these local writers on finance,
| that it would mOnopoliZe all our
available space to outline their
errors.
But we have not yet done with the
uutruth pIastered on the face of the
foregoing extract, which purports to
state an iueontrovertibIe fact. The
ADVERTISERS demonstrated on the
1st instant that the coin accumula-
Iation in the United States Treasury
on the 1st day of March was
greater than at any previous period
in its history, which is certain
Iy not sign Of impending ruin. But
this coin reserve performs a function
which is apt to be lost sight of. The
United States has S346, 100000 in cir
culation as treasury notes, or green
backs,'' as they are called. These are
redeemabIe in coin-either gold or
silver, and the law requires the Treas
| ury to hold a coin reserve against any
sudden call for payment. On March
l, 1885, there were S175, 297, 232 gold in
! the Treasury, of which SIP, 6S3, 290
were in circulation as gold certificates,
and therefore belonged to the people.
/ This left gold balance belonging to
/ the Government of So, 6IS, 942, which,
added to their silver reserve Of S42, O93,
O56, made SlO4, zoo 1913, as a guarantee
| fund for the redemption of $346, OO0,-
! 600 paper currency. In point of fact,
/ tharafOre thpro is not q single gold or