Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1891-06-02
How Much Money in Circulation.


very descriptive. The secretary OF the
treasury two years ago published a
statement in his annual report, purport-
ing to show the amount OF money in
circulation in the country. He began
in 1878 and came on down to the present
writing, giving what the treasury
figures showed to be the amount OF mon
ey in the country and the amount in the
treasury, calling the difference between
those two amounts money ir ''circula
tion," and he put the amount in 'circu>
latiOn' on March 1878, at $500, 1913. SOI,
and the amount in circulation"
October |, 1889, he put at 81 800, 0lS, 900,
adding that the net increase in the Cir
culation between the years 1878 and 80
amounted to $500, 224, 1913. People gen
orally took the statement as meaning
exactly what it says when in truth it IL
misleading, and does not show what the
people want to know. The secretary did
not intend to deceive the people or to
misrepresent the facts. He simply gave
the amount of money which is not in
the treasury and called that in ''circu-
lation." There is not, in point of fact.
one-half as much money IN circulation
as the secretary's figures indicate, nor
was there half as much at that time.
This is explained in this way: Every
national bank is required to keep with
in it's vaults % per cent. OF its circula-
ton and deposits as reserve fund.
from which to meet drafts upon it.
State banks intend to keep about the
same amount of reserve. This reserve
fund in all the banks amounts to about
800, 100000: taking that alone from
the 81, 400, 100000 that the secretary
gave a little over year ago, and we
have but 500, 100000 left as in circula-
ton. 1t is in the safes of business firms
and private individuals who are not
using all of their money and do not
wish TO. Just what amount this is, OF
course, it is impossible to ascertain.
senator rlump, In an able anu ex-
haustive speech delivered nearly year
ago. reviewed the situation very care
fully. He says that at this time there
is outstanding about 81, $50, 900, 900, and
it is made up of gold coin $3.50, 900, 600,
silver, including subsidiary coin, $42O,-
100000. treasury notes 1916, 900, 600, ma
tional bank notes $l5S, 1000, making
d total of 1.574, 100000, from which he
deducts $14,000,000 in notes lost and
destroyed, leaving total remaining as
stated 81, $50, 000,0 900. And in this esti-
mate he takes the secretary's statement
as to the amount OF gold in the country,
namely, 10000 900. Mr.. Plumb how
ever, does not believe that there is so
much gold as that in the country. He
believes that the actual amount is short
of the secre arys estimate at least $3.50
100000. and he gives his reason for 1T.
Then he sums up the situation in this
way: From the total of 81, $50, 900, 900,
deduct $3.50, 900, 600 which the treasury
always keeps an hand, and that leaves
81 300, 600, 900, then he insists that $780,
0OO,0O0-error in the estimate of gold
in the country-Ought to be deducted;
that would leave the amount 81, 100, 900
900: from this he subtracts the reserve
500, 000,0 600, leaving balance of but
$3.50, 100000, which is available for de-
livery or other use in the transaction OF
the business OF the people, or little
less than 81 per capita He concludes
his estimate in the words: IF l were
deciding this case upon what | con-
Bidered the best evidence l would be
bound to say that believed the money
in actual circulation did not much, If
at all, exceed $780, 100000"
1t is time that the people should face
this difficulty honestly and fairly. No
party or man can gain any substantial
and permanent advantage by mislead-
ing the people in any respect, nor can
he obtain any permanent benefit for
himself or for his party or for his
country by concealing or distorting
facts which bear upon the common in
terests of the people. We all know
very well that there is not anywhere
near the amount of money in circulation
among the people that ought to be.
We know that all over the country