The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-07-23

Figures That Should BE Read by Demo
Gratis and Peoples Party Howlers.

of late so much misnf0rmatlon circulated
regarding our finances and the laws which
govern the banking system of the country
that 1t is almost impossible for the average
reader to get an intelligent idea of the sit
uation or the issues which will figure most
prominently in the campaign. The mis-
representations which are being made con-
stantly by speakers and lecturers in the
country, although for political effect. are
not altogether with view to misleading
their hearers and readers. 1t comes from a
lack of correct data at hand.
The national banking system is Just now
one of the prime objects Of attack, and the
laws governing banks have been so DIS
torted and misrepresented that one can
scarcely get an intelligent conception of
them. even with the laws at hand. For a
time it was stated that the government was
loaning to national banks the peoples
money at per cent. and this was used as
an argument for the sub-treasury scheme.
If the government would loan money to
banks at per cent, why not loan to farm
ers at the same rate OF INTEREST," The fact
Is, the government never loaned money to
national banks OF per cent. or any other
rate. The government has for many years
been taxing the circulation of national
banks, and compelling them to pay the tax,
and that has been distorted by ignorant or
dishonest speakers into o statement that
the government loans money to the ma
tional banks at so much interest. The fact
that the banks take out the minim um of
circulation to avoid the paym ment OF taxes
and the purchase OF bonds to secure the
circulation, would indicate that they do
not find their circulation profitable.
Very recently SO much has been said and
is now being circulated regarding our
finances that is misleading. because er-
rOne0us that q retrospective glance at an
earlier situation becomes more or less in
teresting especially in view of the fact
that there is q plank In the Democratic
platform favoring repeal of the 10 per
means, of course, return to tho State
bank system for circulating medium
And whether there is or is not sufficient
circulation Is more seriously mooted, prob
ably because the amount thereof during
the late war and soon thereafter, and at
present, Is q subject of controversy, and is
brought about by false figures and state
ments.
counting reissues as circulation" and
also the seven.thirty United States bonds
and certain. other things. This error in
statement and belief was quite salts
few days ago in a debate between Sena-
tors Allison and PETER over a reply made
by the Secretary of the Treasury to O reso-
luton offered by the Kansas Senator call
ing for statement of all kinds of circu-
lating medium issued from 1861 to and in
ciuding 1870, wha amounts redeemed each
year up to 1870, etc. The Secretary an
swered very fully as follows:
Ffrst-Old demand notes (acts of July II,
1851, and Of Feb. IL, 1862, $50. 100000.
Second-United States notes (acts of Feb. Is,
1869, $3.50, 6,23o,916.
1t was shown. however, that the law
only authorized total in United States
notes Of $3.50 600 00O fifty millions to be Is
sued only as the demand notes were re-
tired and the United States notes might,
on coming into the treasury, be reissued,
and that of the total, as given above 1856
235. .916l the sum of about 1926, ,0oo. 900 was a
reissue. All were redeemed up To 1870 ex-
cept $3.50, 100000.
Third-Postai and fractional currency, acts of
July, 1862, March 8, 1883, and June 80, 1854,
$3.50. .s63 All redeemed up to 1870 except
Fourth-National bank notes, act of June 8,
1854. $326,69s.0S1; outstanding 1870. $780,
The same may be ssld of the fractional
and postal notes. The law limited their
total to $50, ,00o, 900. and no more than about
$40, 102, eco were in circulation at any time,
and yet the total in the ten years issued
and reissued was upwards of S368, 7a4, ,O79
Thus it Is seen how readily false erron-
eous and misleading figures have crept into
print, especially where the intent may
have been to show shat the country has
less circulation now than during the war.
The Secretary also showed that the largest
circulation, from 1851 to and including 1870
was in 1885, VIZ. S709, ,6O3. .25S. made up as
follows:
Postal and fractional currency..... 27.O70S27
National bank notes tes-..-.......... 2S1,4799O
Total S7O9, sos, ,253
He also proceeds to show that July ],
1891, the circulation was:
United States notes S346. .6el Ol 6
National bank notes. 1922 974
Gold, silver, gold certificates, sill
certificates and treasury
notes OF act Of 1S90.----...--.- 9S2, ,717
Grand total .497 ,44O, ,7O7
This is at least S76S, ,S37, AGA more than
what it was IN 1866.
There were issued certain obligations of
the United States bearing interest, bnt
these were not designed nor employed as
currency. lt Is also true that about $780,
CO0,0OJ of United States notes were issued
In ls52, but this was just about equal to the
amcant OF gold coin that disappeared on
tho suspension of specie payments. January
lS62: 1t is quite erroneous also to say that
the S44. 0O0 of one-year-interest-beari
notes of 1868. or that tho S1l6. $50, coo of %
Notwithstanding notes of 1868. or the
So 6,5e5, 440 of compound interest bearing
notes. in all s477.5s5, $40. formed part
of or to any extent entered into and formed
a part of our circulation. They were held
as Investments. and this was shown to have
been the case when this class of security
came TO the treasury. bright and crisp. as
If unused. to he redeemed. The same is
true of the tive-twepty and seven.thirty
bonds. 1t was this showing. fully supple
mepted by Senator Allison's speech of June
23. 1892. in the Senate, that caused Senator
PETER. the Kansas Alliance advocate. to
throw up the sponge" ana concede that
his efforts to expand" the circulation to
that of war times. when it is beyond that
nov, had been q lamentabie failure.
p. s. II.
WORK OF CONGRESS.