, 1889-12-05
MONEY IN CIRCULATION.
Tho Question of silver Coinage Dis
cusssd ut Length.


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. Ii appears that the amount of
national bank notes In circulation has
decreased during that period by $lli,-
100, 40, OF which $37, 100 229 is chargeable
to the last year. The withdrawal of
bank circulation will necessarily con-
tinue under the existing conditions. II
IL probable that the adoption Of the sug-
gestions made by the comptroller of cur
rency, viz. that the minimum dsposit
of bonds for the establishment OF banks
be reduced, and that tho issue of notes
to the par value Of the bonds be allowed,
would help to maintain the bank cir
culation, but while this withdrawal of
bank notes has been going on there has
been large increase In the amount of
gold and silver coin in circulation and
In the issue of gold and silver certifi.
Gates.
The total amount OF money of all
kinds in circulation on March /. 1873,
was $s05, 7o3, so7, while oh October |,
1889, the total amount was 81, 4o5, 01s, 900.
There was an increase of 3293, AZ, ,552 in
gold, OF s57,554, 100 in standard silver
dollars, Of $72, 81 2+9 i'm gold certificates,
Of $216, $40, ,i5 in silver certificates, and
Of $ls,O73,7s7 in United States notes,
making a total of S7l3,076, 400. There
was during the same period decrease of
STA 100 10 in bank certificates, and of
S6+2, iSl In subsidiary silver. The net
increase was $500, "a, ioS, The circula-
ton per capita was increased about IS
during the time covered by the table re-
ferred TO, The total coinage of silver
dollars was, on November 1, 1880 $343,
| GSS. .00t, OF which 1888, $40, 52l were in tho
treasury vaults, and $50 00S, 1870 were In
circulation. Ofthe amount in the vaults.
$277, ,3lD,04 were represented by out
standing silver certificates, leaving
~, 2lO,577 not in circulation, and not
represented by certificates,
SILVER COINAGE.
The law requiring the purchase by
the treasury of s. 1000, ,O06 worth of silver
bullion each month, to bo coined into
silver dollars of il2H grains, has been
observed by the department, but neither
the present secretary nor any of his
predecessors has deemed it safe to exer.
else the discretion given by the law to
increase the monthly purchases to
81, 600, 100. When the law was enacted
February 2S, 1879 the price of silver In
the market was 81 10 40 per ounce,
making the bullion value of 81, 93 cents.
since that time the price has fallen as
low as 9i.2 cents per ounce, rcduc-
ing the bullion value OF the dol
lar to 70.6 cents. Within the Inst
few months the market price has
somewhat advanced, and on the Let day
of November last the bullion value OF
the silver dollar was ~ cents. Tho evil
anticipations which have accompanied
the coinage and use of the silver dollar
have not been realized. Al ooin IL has
not had general use, and the public
treasury has been compelled to store it..
But this il maniiestly owing to the fact
that its paper representative Is moro
convenient. The general acceptance and
use of the silver certificate show that
silver has not been otherwise discrcd-
tied. some favorable conditions have
contributed TO the maintenance of this
use between the gold and silver dollars,
but some of these are trade conditions
that statutory enactments do not con-
| troll, and of the continuance of which we
can not be certa ain.
think II Is clear that IL we should
make tho coinage of silver at the pres
cnt ratio we must expect that the differ
cnce in the bullion values of gold and
silver dollars will be taken account OF in
commercial transactions, and fear
that tho same result would follow any
considerable increase of the present rat
of coinage. Such result would he dis.
creditable to our financial management,
and disastrous to all business interests.
Wo should not tread the dan
gerou. edge OF such a peril and
indeed nothing more harmful
could happen to the silver interests, and
safe legislation upon this subject mus,
secure the equality of tho two coins in
commercial uses. I have always beer
an advocate of the use of silver in oui
currency. We are large producers Of
that metal, and should not discredit it.
TO the plan which will he presented by
the secretary of the treasury for the IS
suance of notes of certificates upon Tho
deposits of silver bullion at It's market
value, have been able to give only q
hasty examination, owing 20 the pres:
of other matters and because II has beer
SO recently formulated. Tho details O
such . law require careful consideration
but tho general suggestions on the q,,es
tioi >by him seem TO satisfy tho purpose
to continue the use of silver In connec
Lion with our currency and at the sam,
time to obviate tho dangers Of which
have spoken. Al later day ma,
communicate further with congress upoi
this subject.
cnvNEaE rYnruaunN,