New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-30
CURRENCY EXPANSION.

Several financial and commercial JOURNALS
have criticised the recent statement made by
THE TRIBUNE regarding initiation OF the cur
rency, and for the public information the
points made merit notice. First as to the facts,
the accuracy of The TRIBUNE's statement has
not been denied, but widely differing tables
have been printed, which, like that OF "Ihe
Financial Chronicle" include all coin and pa
DER lying unused in the Treasury. As 1.-The
Real Estate Record rightly observes. this only
confuses. The currency in actual use Is that
outside the Treasury, the amount OF which was
correctly stated by TIE TRIBUNE. Other
statements, which include net cash in the
Treasury, or which, like some which have been
widely published include both the coin in the
Treasury and the certificates which represent
that coin in circulation. cannot have any other
effect than to prevent correct understanding
of the situation.
1t is objected by "The Indicator" that the
gold coin ought not to be included because IL
is not actively circulating, but generally heard
ed In the main it is true that gold coin no
longer circulates, and that fact proves the cor
rectness of THE TRIBUNEs statement that the
volume of money is greatly in excess OF pub
lie needs If it were not crowded out OF use
by other forms of money, gold coin would CIR
oulate as freely ms it does on the Pacific Coast.
BY far the greater part OF it Is disused, ana
much of it boarded, because so large volume
of other kinds of money is thrust into circula-
ton. The word "hoarded," in this connec-
ton. is apt to mislead because 1t suggests de-
liberate and long continued hiding fact OF
much wider influence is the quiet and half
untbinking retention Of the kind OF money
considered most valuable. If man has 81 o
in gold coin, and other money, and does not
need to pay out $40 of the amount, in most
cases he keeps the gold, though he may have
no clear reason in mind for the preference
That unconscious preference makes Dill
ference nay, rather, it is difference in value
of various kinds of money.
"The Real Estate Record" seems unable
to discuss the facts and reasons submitted,
without attributing to THE TRIBUNE partl-
san motive. The facts, which "The Real Es-
tate Recordn does not question, prove that
there has been an increase in the volume OF
money in circulation far exceeding the increase
in population The question is not, there
fore, whether an increase of population renders
corresponding increase Of currency neces-
sary-a notion which appears to The TRIBUNE
q mark of financial barbarism-but whether an
increase much greater than the increase In
population IS needed. To that practical CUES
ton but one reply is made. which has an an
cient and fsh-like smell namely, that France
has over $50 per capita in circulation. The
assertion is one for which no competent sta
tistician anywhere win vouch. but if it is true,
is France more prosperous than the United
States? Let any sensible man read the latest
Consular report regarding the condition OF in
dustries in France. and answer
Different countries, with different banking,
credit and monetary habits, need different cur
rency systems. France is par excellence the
boarding nation this is of all others the bank
ing nation. The distinction is as wide as be-
tween light and darkness. Money saved IS
money used, in the United States; in France
it is money hidden. The man Of sense, having
studied these differences no longer asks
whether this has more currency than other
nations, but whether this country, with its
peculiarities, has more currency than at other
times when its prosperity was greatest. The
United States is not more prosperous than IN
1880, hut it has 45.6 per cent more money
in circulation outside the Treasury.