New-York tribune., 1886-08-12
CURRENCY And coin IN CIRCULATION.

and scrupulOlisly exact men VINO HtNcuesei'eu
neither confidence nor consideration.
CURRENCY AND COIN IN CIRCULATION.
The sudden shrinkagc of the bank surplus IL
by some attributed to the natural expansion
of business which q return to prosperity would
involve. That would be the most agreeable ex-
planation of the phenomena now observed, il
il were in accord with facts. But the Truth Is
that there has been no increase in the amount
Of money in actual use, but probably decrease
during the past year. though there has undoubt-
cdly been an enlargement in the volume OF Dllsi-
ness. There is vast amount oil money ldlc,
as there was last year. The fact that 1t Is not
employed with the enlargement OF trade, clearly
indicates that more money was in circulation a
wear ago than was needed As ii is exceedingly
impoltant on many accounts to clear away mis-
appIchcnsion regarding this nattcr before "a
season of monetary pressure arrives, the olllcaI
records are consulted for the facts. The amount
Of coin certificates and legal tenders not in the
Treasury and of bank-nOtcs outstanding, on Tie
first of August this year and last was a. fol-
lows:
Gold certificates -. s747Is5l7 sI2s2saOOo $is57oisS
silver certificates. s7,aei0ii es.s72l6 ll,Soooo@
Legsl.tcnders S2474Ls7+ 329oS@olo 4oio'iso
Rank notes .... 3OG5lG335 3l69ll,lis lO39i,sIo
Here Is found a decrease of $75,2l3,5OO
in the amount of paper currency held outside
tho Treasury. Against this there has been some
increase in coin $3G, ,O97 ,319 in gold have been
coined in twelve months; the net exports Oh
cold coin in eleven months were Sl,9355SI,
with practically none in July. The amount
u,cd in recoinagc was perhaps 5000, ,OoO, ana une
estimated use III the arts S5,OOO,Oo'', leaving
"A net increase of SIS, ,G6l.795 in gold com Tor
the wear. of which $9,9l7,2lS has gone INTO the
Treasury, and SIS, i,517 has beer added to
the amount in the hands of the people. But Just
here If /, Necessary to observe that the use OF
god coin has certainly diminished during the
past year. a year ago 81 per cent OF the duties
were paid in gold OF gold certificates now only
3 per cent is so paid. Coin has TO noteworthy
extent disappeared from deal ms in Which 1t va
formerly employed, and the only possible infer
cncc j. that the added stock OF gold has been
boarded and not taken into active clIculaton.
The amount of silver dollars outside the Treas
NY has increased $l5l1i,929 during the past
year. and these have gone into actual crcua-
tion in place of small notes Withdrawn. lhu-
deere ha, been a dccica-c III the amount OF all
kind. of money outside the Treasury during
the past year of only Sll,35399I But IL
the added gold has been boarded, the decrease
in elective currency has really been greater.
Now il is possible 10 measure the CORRECTNESS
Of "A statement often made, that the decrease i'll
rc-crvc of New York banks since last year has
been due to the revival of business and the
larger employment of money therein Inc
banks held Il year ago Tl0o,3i0, ,1oo, ana
now hold $50, 1876, 700 less money, but the
quantity of money in the whole country out
~ldc the Treasury has decreased 81 ,3OO,ooo, SO
that the quantity i'll Use outside Ncw-lo.k banks
/, only $1,000. 900 la ger than it was. That
i. less than the amount of added gold, which. o.
| has been stated, las not gone into active use.
| The amount in active usc outside the Treasury
| and the New York banks Is, therefore, not as
| large n, 1t was year ago.
This demonstrated fact must be taken III
connection with one other, that there has u
| vet been no stringcncy nor any visible lack OF
moncy anywhere. An increase OF about ~ per
| cent i'm the volume of business has taken placc,
without "A material change i'll prices, though
the level is n little higher than 1t was Il year
| ago. But the amount of money needed and
actually used is not greater than II wis bclolc
| the 20 per cent increase occurred. The conclu-
SION cannot lie avoided that the amount of cur
| icncy in circulation year ago was greater than
was necessary by at least the entire amount
| since Withdrawn. The truth is that II full
confidence prevailed as to the financial future,
| 80 that the enormous stock of gold in the coun-
nv were freely used and nowhere boarded,
| there would be far more moncy in circulation
.Lan the country requires. But the coinage of
| .ilycr coin continues to threaten and the gold
continues to hide To that fact, and TO no
| other, will any monetary pressure that may
occur this fall be rightly attributable.