Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1889-12-12
MONEY MATTERS.
A Decrease in the Circulation of National
Bank Notes = The silver Question.


A table represented by the secretary Of the
treasury showing the amount Of money OF all
kinds in circulation each year from 1873 TO the
present time is Of interest. 1t appears that the
amount Of national bank notes ia circulation nas
decreased during that period STA 09 ~, OF when
S37 ,19o, 20 Is chargeablo TO the last year. Inc
withdrawal OF bank circulation viii necessarily
continue under existing conditions III is proc
able the adoption Of the suggestions made by the
comptroller of the currency, viz: That the MINI.
mum deposit Of bonds for the establishment OF
banks De reduced, and that an issue OF notes 10 the
par value of the bonds be allowed, would help 70
maintain the bank circulation; but WINE TINS
withdrawal Of bank notes has been going on tnefe
has ueCn large increase IN amount OF Kola aho
silver coin In circulation and in the issues OF golu
and silver certificates
The total amount OF money OF all kinds in cir
rulaton on March LIST, 1873, was $685. 1913 8Oz while
on October !, 1889, the total was 81 ,4O5,OlhOO
There was an increase Of S93 Az 552 In gold, and
Of S57, 5A 100 in standard silver dollars. OF Si2
81 $40 in gold certificates, of s276 1921 rs in silver
certificates, and Of sl4013,7S7 in United States
notes, making a total Of S7l3,976 4O3. There was
during the same period, decrease OF STA lgO,2O'
IN bank circulation and Of s64@, 4sl in subsidiary
silver. The net increase was 1893, 294, 1873 The
circulation per capita has increased about hYe
dollars during the time covered by the table re-
ferred TO. The total coinage Of silver dollars was
on November l. 1889 S3i3 63S 00l, of which s2s3
40 521 in the treasury vaults and S60UJo, $50
we're In circulation. OF the amount in the vaults
Z7Sl9,944 were represented by outstanding ST.
yer certificates leaving S62l9,jO not IN circula-
ton and not represented by certificates.
The Silver Question.
The law requiring the purchase by the treasury
OF two million dollars worth of silver bullion each
month, 10 be coined into silver dollars of 4l2l6
grains has beer observed by the department, but
neither the present secretary nor any Of his pre-
decessors has deemed il safe 70 exercise the dis
erection by law, to increase the monthly purchase
70 four million dollars. When the law was enacted
February rs, 1873, the price of silver in the mar
ket was 81 20 40 per ounce, making the bullion
value of the dollar 93 cents. Since that time, the
price has fallen as low as VI. ~ cents per ounce
reducing the bullion value of the dollar TO 7O.6
cents Within the last few months the market
price has somewhat advanced. On the first day
of November last, the bullion value Of the silver
dollar was ~ cents. The evil anticipations which
have accompanied the coinage and use Of the silver
dollar have not been realized. As coin it has not
had general use, and the public treasury has been
compelled to store it. But this is manifestly ow
ing TO the fact that its paper representative is
more convenient. The general acceptance and
use of the silver certificate show that silver has
not been otherwise discredited. Some favorable
conditions have contributed to maintain this
equality in their commercial use between the
gold and silver dollars But some Of these are
trade conditions that statutory enactiuents do not
control and of the continuance Of which we can
not be certain.
think it lis clear that if we should make coin
age Of silver at the present ratio free, we must
eN pect the difference in the bullion value OF the
gold and silver dollars viii be taken account Of in
commercial transactions and l fear the same re-
salt would follow any considerable increase of the
Ur,svrt rate OF coinage. such rssult would be
disertditabie to our financial management and
disastrous 10 all business interests. We should
not tread the dangerous edge of such peru and
indeed nothing more harmful could happen to the
silver interests. Any safe legislation upon this
subject must secure the equality of the two CONS
10 the commercial uses. ! have always been an
advocate Of the use Of silver in our currency
We are large producers of that metal and should
not dIscredt il.
10 the plan which will be presented by the sec
retary of the treasury for the issuance of notes
OF certificates upon the deposit of silver bullion
90 its market value have been able to give
only a hasty examination owing to the press of
other matters and to the fact that il has been SO
recently formulated. The details Of such law
require careful consideration, but the general
plan suggested by him seems to satisfy the pur
pose to continue the use of silver in connection
with our currency and at the same time 70 ob
giate the danger of which have spoken. At q
,ater day | may communicate further with con-
gress upon this subject.