The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-12-11
THE cURR ENcY.

THE CURRENCY
He Recommends That the Coinage of silver
BE Not Increased
A table presented by the secretary OF
the treasury showing the amount of money
of all kinds in circulation each year. from
1878 to the present time, is OF interest. 1t
appears that the amount OF national bank
notes in circulation has decreased during
that period Sll4.109, 729, of which S37, 799,-
229 is chargeable to the last year The
withdrawal of bank circulation will neces-
sarily continue under existing conditions
1t is probable that the adoption of this
suggestion, made by the comptroller of
the treasury, viz: that the minimum
deposits OF bonds for the establishment of
banks be reduced, and that an issue of
notes to the par value of the bonds be
allowed-wouldhe help to maintain the bank
circulation. But while this withdrawal of
bank notes has been going on, there has
been a large increase in the amount of
gold and silver coin in circulation, and in
the issues of gold and silver certificates.
The total amount of money OF all kinds
in circulation on March l, 1873, was $685.
793,S07, while on Oct. l. 1889, the total
was 81, 405, 01S,000. There was an increase
OF 1928, All ,552 in gold coin, of 1854, 100
in standard silver dollars, of 81, 81, 249 in
gold certificates, of S276,6l9,7l5 in silver
certificates and of S14,073,7S7 in U. S.
notes, making a total of S713, 976,0S3.
There was during the same period de-
crease of STA, 100, 729 in bank circulation,
and of S642, 4Sl in subsidiary silver. The
net increase was $500, pa, lO3 The circu-
latiOn per capita has increased about s.
during the time covered by the table re-
ferred to. The total coinage of silver dol
lars was on Nov. l, 1889, S343, 63S, Dol, OF
which 1888, $780, were in the treasury
vaults and S60,09S, 4S0 in circulation. OF
the amount in the vaults 77,3l9,944
were represented by outstanding silver
certificates, leaving S6,219,577 not in cir
culation and not represented by certifi-
Gates.
No Greater Coinage.
The law requiring the purchase, by the
treasury. of 100000 worth of silver
bullion each month to be coined into sill
yer dollars of 412l grains, has been OBJ
served by the department; but neither the
present secretary, nor any of his predeces-
sOrs, has deemed it safe to exercise the
discretion given by law to increase the
monthly purchases to 100000. When
the law was enacted (Feb. IS, 1879 the
price of silver in the market was Sl.20 40
per ounce, making the bullion value OF the
dollar % cents. Since that time the price
has fallen as low as 91.2 cents per ounce,
reducing the bullion value of the dollar to
700 cents. Within the last few months
the market price has somewhat advanced
and on the lst day of November last the
bullion value OF the silver dollar was y
cents.
The evil anticipations which have accom-
panied the coinage and use of the silver
dollar have not been realized. As a coin
it not had general use and the public
treasury has been compelled to store it.
But this is, manifestly. owing to the fact
that It's paper representative is more con-
venient The general acceptance and use
of the silver certificate shows that silver
has not been otherwise discredited. Some
favorable conditions have contributed to
maintain this practical equality in the
commercial use between the gold and
silver dollars But some OF these
are trade conditions that statu-
tory enactments do not control
and of the continuance of which we can
not be certain. / think it is clear that if
we should make the coinage of silver at the
present ratio free, we must expect that the
difference in the bullion values of the gold
and silver dollars will be taken account
of in commercial transactions, and l fear
the same result would follow any con-
siderable increase of the present rate of
coinage. Such a result would be discredi-
table to our financial management, and
disastrous to all business interests. We
should not tread the dangerous edge of
such peril. And, indeed, nothing more
harmful could happen to the silver inter
ests. Any safe legislation upon this sub
jet must secure the equality of the two
coins in their commercial uses.
/ have always been an advocate of the
use of silver IN our currency. We are
large producers of that metal and should
rot discredit it. To the plan which will be
presented by the secretary of the treasury
for the issuance OF notes or certificates
upon the deposit of silver bullion at its
market value, have been able TO give
only a hasty examination, owing TO the
press of other matters and to the fact that
it has been so recently formulated. The
details OF such law require careful con-
sideration, but the general plan suggested
by him seems to satisfy the purpose-tO
continue the use of silver in connection
with our currency, and at the same time
TO obviate the danger OF which | have
spoken At later day / may commune
cate further with congress upon this sub
ject.