New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-06
THE SUPPLY or MONEY.

Having increased >24I99 $40 in the month
# December. the volume of money in actual
circulation outside the Treasury is now the
larsc>' eyer recorded by about that amount.
Bu, with nearly one thousand five hundred and
twenty -nino millions in actual circulation, GER
tain dcmagogucs n Washington are ncvcrthc-
less getting ready for their annual olatory about
the scarcity Of currency. and the imperative
need OF making more money for the lmpccuni-
Gus. Ton years ago ~ cvcryb body admits, the
country was wonderfully prosperous. Yet the
actual circulation has increased about 80 per
cent since January 1850, while the population
has not increased quite - per cent during the
decade II would therefore bee appropriate, be-
fore assuming that "A greater volume of cur
rcncy is necessary, for orators to explain why
vastly more is needed for each inhabitant than
was found highly stimulating and sufficient for
the utmost prosperity in 1850.
1t will be said. and with truth, that the
volume of business has increased much more
than the population. But that means, of ne
ccSSity, that the people are both consuming
more and producing more; they enjoy moro
pleasures and comforts and are able 10 pay
for more, and get more in return for their
years labor III that is not greater prosperity,
pray what is? The facts admit Of 10 dispute.
The people do now consume more for every
nhabtlnt Of all sorts of products than they
did ten years ago. The production has greatly
incrca ,cd in iron and some other manufactures
more than 100 per cent, and the ability to
purchase and consume is that which has made
the increased production possible. If the pco-
pie have these practical results of progress and
prosperity what is the use Of telling them that
they are suffering for more money because they
are 50 prosperous?
Granted that the increase in the volume of
business has been about 60 per cent since
1850 measured by all exchanges through banks
outside of Newly York, which is the best test
yet found But this very increase in exchanges
is in itself an increase in the use Of facilities
which make money unnecessary. When the
accounts OF business men are written of against
each other at banks they need no cash to make
the payments from \ to b and then from b
bac; to \. The creation and the increased use
of these methods sets free enormous sums of
money, which were formerly required in whole
sale trade and in manufactures SO that larger
proportion Of the currency in circulation re-
mains tor use, or for carrying in pockets or
storing in stockings by the people Hence the
Controller discovers that, OF all the payments
made at this time, a little larger proportion is
made in cash than was so made in lSS1-a
third more in gold, half more in lcgal-tender
notes, and twice rs much in silver.
The country has actually in use outside the
Treasury one thousand five hundred and TWEEN
ty-nnc millions in money, against one thousand
four hundred and thirty millions a year ago
and about one thousand millions i'm 1850.
What has become of this money? About four
hundred and eleven millions Of gold coin and
one hundred and forty-four millions of gold
certificates are in circulation outside the Treas
ury, All incfeasc of about fifty -four millions