The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-21

amount Of money in the country. outside OF
the treasury. on the 1st day Of december.
1893, was SIP, 404,947 greater than the
amount outstanding on the 1st day OF No
vember, 1892. This vast increase in the vol
ume Of outstanding currency, notwtthstand-
ing the enormous exports OF gold during the
year, is the result of several causes, among
which may be mentioned the issue OF trea-
sUry notes for the purchase OF silver bull
lion, the excess of public expenditure over
receipts, the additional circulation called for
by the national banks during the late IMAM
cial stringency, and the large imports or
July, August, September and October, 1898,
10 the sum Of $55, 1S ,526.
THAT the amount of money in the coun-
try is greater than is required Or the trans
action or the business or the people at TINS
time is conclusively shown by the fact that
IL has accumulated, and is still accuraulat-
ing, In the financial centerS 10 5uch an extent
as TO constitute a serious embarrassment
TO the banks i'm which il is deposited. many
OF which are holding large sums at a loss.
This excessive accumulation Cf currency AT
particular points is caused by the fact that
there is no such demand fer il else "a here
as will enable the banks and other inStitu-
tions to which il belongs TO loan l. TO the
people at remunerative rates. and IT will
continue until the business or the country
has more fully recovered from the depress-
ing effects OF the recent financial disturb
0nces.
Money does not create business, but bust
ness creates "a demand for money, and until
there is such a revival OF industry and trade
Ss TO require the use Of the circulating me
dunn now outstanding, il wOuI1 be hazard
Gus to arbitrarily increase its volume by
law, or to make material changes in its
character by disturbing in any manner the
70 each other. In the meantime. II will be
the duty of all who have power 10 influence
ton or otherwise in the solution of the
grave questions presented by the altered
condition of our monetary system, 10 care
fully consider the whole subject in all its
aspects. in order that il NAV re permanent
ly disposed of by the adoption Of Il simple
and comprehensive system which will. as
far IS DOSSIhlR rall0Va the PnVPrnmPnf Of
the onerous obligations now resting UPON II,
and at the same time secure for the use of
the people a currency uniform in value and
adequate in amount.
INCONSISTENT LAWS.
"The unsatisfactory condition of the cur
rency legislation has been for many years
the cause of much discussion and disquiet-
ude among the people. and although one
great disturbing element has been removed
there still remain such nconsistencie in
the laws and such differences between the
forms and qualities Of the various kinds
of currency in use that private business is
sometimes INSTRUCTED. and the Treasury
Department is constantly embarrassed in
conducting the fiscal operations of the gov
eminent. There are now in circulation nine
different kinds of currency, all except two
being dependent, directly or indirectly, upon
the credit of the United States. One statute
requires the Secretary of the Treasury to
redeem the old legal-tender notes in coin
on presentation, ana anOtnef COmpeIS MIN
TO reissue them, so that, no matter how
often they are redeemed. they are never
actually paid and extinguished. The act of
July IL, 1890, provides that the treasury
notes issued i'm payment for silver bullion
shall be redeemed in gold or silver coin,
at the discretion of the Secretary. and,
when so redeemed, may be reissued. But
the same act also provides that no greater
or less amount of such notes shall be out
standing at any time than the cost of the
silver bullion and the standard silver dol
lars coined therefrom than held in the treas
ury. purchased by such notes. and. conse-
quently. when these notes are redeemed
with silver coined from the bullion pur-
chased under the act, they cannot be re-
issued, but must be retired and Cancelled,
for otherwise there would be a greater
amount of notes outstanding than the cost
of the bullion and coined dollars then held
the amount of s2,625.9S4 have been retired
and Cancelled since August last, and stand
In the circulation. If redeemed in gold coin
the notes might be lawfully retired or re-
issued in the discretion of the Secretary,
but the condition of the treasury has been,
and is now. such that practically no dis
erection exists, and for the reason that the
necessities of the public service and the
requirement of the coin reserve compel him
TO reissue them in defraying expenditures
OF the government or in procuring coin TO
replenish that fund.
zone of the principal difficulties encoun-
tered by the Treasury Department results
from the indisposftion OF the public to re-
tain standard silver dollars and silver GER
titicates In circulation. 1t requires constant
effort upon the part of the treasury Off
Gals to prevent the certificates especially
from accommodating in the subtreasury to
the exclusion of legal-tender currency. Why
this should be the case is not easily under
stood, for, although these certificates are
not legal-tender in the payment of private
debts. they are, by the acts of 1878 and 1886.
made receivable for all public dues, and by
the act of May II, 1882. national banks are
authorized to hold them as part of their
lawful reserves. With the policy of main
tanning equality in the eXchangeable value
Il of all orr currency firmly pSfahlicha6 and
the further accumulation of silver bullion
arrested, there is no substantial reason why
the silver certificate should not be as ia
vorably received and as literally treated
by the public as any other form of note
In circulation; and. for the purpose of ere
atinS a greater demand for their permanent
use in the daily transactions of the people,
| have directed that. as far as the law per-
afforded. the amount of such certificates
OF denominations less than SO shall be in
creased by substituting them for larger
nominations of other kinds of currency shall
be retired as they are received into the
treasury and larger ones substituted in
their places.
OUTSTANDING NOTES.
There are now outstanding United States
legal-tender notes to the amount of $50. GA
al in denominations less than ten dollars:
treasury notes. issued under the act OF 1880.
of denominations less than ten dollars. $64.-
sS.4S9. and national bank notes, $685. S1, 916.
There is express authority i'm the act of
Aug. 4. 1856, to substitute small silver GER
tificates for larger ones. and the Secretary
OF the Treasury also has power to make
u changes as he may deem proper in
the denominations of the treasury notes,
issued under the act of July II. 1890, but
Congress-. in the sundry civil appropriation
act, approved March 8, 1893, provides that
no part OF the money therein appropriated
to defray the expenses of the Bureau of
Engraving and Printing should be expended
for printing United States legal-tender notes
or larger denominations than those retired
or Cancelled. AS the law now specifically
deslgnates the denominations in which ma
tional bank notes shall be issued, they can
not be changed without further legislation,
and. consequently, during the present fs-
cal year. at least. the $64.6 SIS. 4S9 in small
treasury notes are the only ones that can
be lawfully retired to enlarge the use Of
small silver certificates. | am OF the opin-
ion that If this policy can be carried out Il
the extent or supplying the country with
small silver certificates to an amount Sufii-
cieDt TO conduct the ordinary cash trans
actions or the PEOPLE and if. during the
same time. certificates of the largest de-
nominations were issued in the places of
others retired. so as TO encourage the ma
tiOnal banks TO hold them as parts of their
lawful reserves, the existing difficulties
would be removed. and ultimately a larger
amount of such currency than is now in
circulation could be conveniently and safely
used.
The treasury now holds $40. 500, 100 fine
ounces of silver bullion, purchased under the
and which. at the legal ratio of l59SS TO 1,
make Isl gi4 $40 silver dollars The act prn.