The advocate., 1891-08-19
THE CAPITAL In 1890 VS.. THE CAPITAL
I'M 1891

&n NuO 4HoO bWO AnDUCb VI 4nb RDVO-
CATE we have published articles from
Geo. G. Ward and from Hon. John
Davis, conclusively demonstrating
that the Capital does not agree with
the secretary Of Che treasury and
other good orthodox authority in re-
lation to the currency in circulation
at various periods since the war. We
now propose to show that it does not
agree with itself. In order to do this
it will be necessary to quote quite
literally from it's columns. The fol-
lowing is from it's editorial in review
Of Senator PETER in the issue of July
rs, 1891:
The judges main error was in relation to
the alleged contraction of the currency.
He agrees with H. A. Dunning, late asso-
Ciate editor Of Folks Washington organ,
that the currency in actual circulation per
capita in 1866 was $52.O1. To obtain these
figures he went to the report of the score
tary of the treasury, which distinctly states
that the actual circulation in that year was
$3.50 per capita. To-day, by the way, the
same high authority puts the actual Circula-
tion at about $3.50 per capita. In 1866 the
currency was at a discount in purchasing
power, however, which reduced 1t
potentially TO s16.45 per capita. To-day
every dollar is equal to gold, and we have
in circulation, therefore, $236O in place Of
$l6.45 per capita, an enormous expansion in
the last quarter century to the undying
credit of the Republican party.
Judge PETER, however, manipulated the
seCretary's report for 1876 so as to include
in the currency those portions of the public
debt which were in form Of notes. We
quote from the judges statement:
The rest of the (secretarys) statement Is made
up except the first two isSues) OF notes Of differ
ent issues, not bonds:
Bonds due In 1868. 868.................... S8,9O8,341
Bonds due In 1857 867.................... 9,4l5,2G0
Compound interest notes ............ lB0,Ol2, 40
73O treasury notes B.................. SO6,26l $50
Temporary loan, ten days notice.. 120,l76,l 1876
Certificates OF efiDdebtedneSS ......... 2G,39l, 900
United States notes ................ 4OO,S9l 1868
Fractional currency. ................ H,070,876
Gold certificates Of deposit. it......... lO,7l3,2i0
Total. $50 SOC, ,29l
All these different classes OF notes, certificates
etc, amounting to S1,5TO,5O6,21O, were used as
currency" National bank circulation, June
90 1886, was S2S1 4l0,0O8. Add this to the other,
and we have total active currency" circulation
at that time OF Sl,S O9OO,7O9, which, estimating
the population at 35,OOOOOO, gives per capita
circulation Of $50.
Here Is Peffer's Fundamental and fatal
error. What he says is historically untrue.
The notes were not used as currency because
they were in denominations too high for use
in ordinary money transactions and further
more they bore high rate Of interest and
were held for that income and not passed
from hand TO hand any more than govern
ment bond is to-day. He includes, also,
$10,996, 1853 of state bank notes, and these
we're not used as currency, either, but were
held in the bank vaults or were being rapidly
retired; If circulated as currency they were
subject TO tax Of 10 per cent, which effect
ually prohibited them. The compound in
terest notes ($159 odd million) were not
circulated but were held for Investment
the best kind Of investment since they bore
compound interest. Judge PETER did not
understand the report of the secretary Of
the treasury or else he manipulated il dis
honestly in positive contradiction of the
seCretary's distinct language. BY his reCk.
lessnesS he has done great injustice to the
anlnndid rnrk Of kha Rannhlinnn marty In,