The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-05-03
Secretary WINDOWS Reply to the
National Economist.
4 Statement Of Gold, Silver and Currency
Now In Circulation.
The Surplus Fast Being Used for the Re
demption Of Bonds-A Proper Re-
serve Kept for Emergency.
Special by the California Associated Press.

uom tulS dltcIuUuu maue puOllc MS reply
to an article in the National Economist en-
titled The Volume of Cure ncy." He first
shows the circulation of April 1st last to be
as follows: Gold coin. 1873, 624, ass; stand
ard silver dollars, 1889 656; subsidiary sill
yer, S53,9S4.972; gold certificates, S134
93S,079; silver certificates. $3.50, sos, 562 :;
United States notes. $3.50. IS, 3J9; ma
tional bank notes, S1S6, 5S9, 936; totals,
S1.437. 494,o52 The Secretary then says:
There is no duplication in any
of these figures, nor do they en-
brace any money in the Treasury. The
total amounts of gold coin and bullion, sill
yer coin and bullion, gold and silver eertif-
Gates and Of United States and national
bank notes in the Treasury have been de-
Quoted and are not included in the amount
of circulation presented above. The gold
coin in circulation represents the difference
between the amount estimated from the Of
fetal tables to have been in the country and
the total amount of gold in the Treasury of
the United States.
MONEY IN CIRCULATION.
A"e POAeiSh VI tiO 6OiQ COlu Ill ClTCu-
lation actually performs the duty of cir
culatng medium, and what portion is held
by banks and boarded by individuals, no
one can say. The only banks required by
law to render reports to the department are
national banks, which held in their cash
about S71,000.0O0 in gold. This is Just as
much in circulation as any other cash item
reported by the bank. The number of sill
yer dollars in circulation represents the
difference between the number coined since
March l, 1878, and the number held in the
Treasury of the United States April l, 1890.
The amount of subsidiary silver coin repre-
sents the excess of coinage since 1873 over
the amount in the Treasury. The gold and
silver certificates in circulation represent
the actual amount of these notes issued less
The amount in the Treasury. The amount
OF United States notes In circulation repre-
sents the amount issued less the amount in
the Treasury. The amount of national
Dank notes IN circulation represents the
amount outstanding, as reported by the
Comptroller of the Currency, less the
amount in the Treasury"
A SMALL SURPLUS.
The Secretary then, on estimating the
population Of the United States at 81 ,0O0,-
600 people, shows that the amount of
so So per capita. In foreign countries it is
as follows: France S27 Sc, United King
dom SD Of, Germany $50 80.
The Secretary then calls attention to the
fact that France is IT, only leading foreign
country the. exceeds the United States in
circulation per capita.
The Secretary then says: In regard to
the money supposed to be boarded by the
United States Treasury, l may say that
aside from the fund deposited in the Treas
l>x,f ~ g. it,
ton of their notes which have been re-
tired, which the Government holds as trustee,
and the balances on deposit in the Treasury
by the discussing officer, the only reserve
which is kept by the Treasury is 500, $1,000
in gold for the redemption of legal-tender
notes, as provided by the acts of 1875 and
1882. There Is no disposition on the part of
the administration OF the Treasury to hoard
money, and the so-called surplus, which is
the excess OF receipts over expenditures, can
redemption of the bonded debt of the
United States, which is being done as
rapidly as bonds can be judiciously pur-
chased.
PURCHASING BONDS.
1.-THE surplus on the 1st inst amounted to
only S35 $50 623 81. exclusive Of fractional
coin, Of which S31, 64S, S98 20 was on deposit
In the national banks, performing the duty
OF a circulating medium. 1t is the policy
and purpose of the department to withdraw
a large portion of this deposit and invest it
In United States bonds as rapidly as it can
be done without danger of decreasing the
actual circulation. The total amount of
money in the Treasury April. $780, was
S666, 643, 261, composed as follows: Gold
coin. S253, 7S2, 305; standard silver dollars,
$50. O366lo; subsidiary silver, So, S14, sos;
United States notes, S6,9l9.657; national
bank notes, S3,937, 1876; total, $3.50, 400, 1888
gold bullion, See, 443, 4S9; silver bullion,
81, 634, 90l trade dollars as bullion. S6,074,-
53S; total, S666,6i3,261. OF this amount
s134. 93S.o79 is in gold coin and was de-
Gates, and $3.50, COS, 562 in silver dollars for
the redemption of silver certificates.
Neither OF these amounts belongs to the
Government, but both are held simply in
trust for the redemption of gold and silver
certificates outstanding; SCI, SO, 267 was
held as fund for the redemption of
national bank notes. consisting of money
paid into the Treasury by national banks
for that purpose. while SIS, 972, ISL repre-
sented money to the credit of the discussing
officers and kept In the Treasury merely as
matter OF convenience and which they
check against. From this you will see that
there is no boarding of money by the
Treasury"
IN THE HANDS OF THE PUBLIC.
The Secretary concludes as follows eff
this is matter Of good banking and q
proper reserve is kept for the safety of de-
positors, l should not consider such an
amount as withdrawn from circulation.
Besides, this is a matter entirely in the
hands Of the public and entirely under
control. When there is pressing demand
likely to lock it up as reserves in banks,
and the contention of these large reserves
is strong argument against The very con-
clusion reached in the article. l have al
ready recommended in my annual report
an increase of currency amounting to about
S50,000,000 per annum. 1t is evident, there
fore, that this letter is not intended to ex-
press any opinion as to the sufficiency of