The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1894-03-20
Seigniorage and Other Matters.

SO many questions have been asked
about the word seignioragc, and its APP
plication to the existing financial condi-
ton of the United States, that The New
York Recorder recently offered Il prize
of $50 for the best definition. Thousands
of answers were received, and the prize
was awarded to Mr. +. J. HcrZog. of
New York, who sent in the following
definition:
Seignorage consists of the difference be-
tween the cost of an amount of bullion and
the face value of the coins minted from it.
BY the Sherman act the government was
compelled to purchase 100000 ounces of
silver per month at the market price. AS
the price of silver fiuctuated, 50 the amount
of treasury notes issued in payment of this
bullion sometimes increased-sometimes di-
mnished The downward tendency having
been greater in the last few years, there
were issued, from the time of the passage
of the Sherman act to its repeal $154 600, 900
III treasury notes. to cover an amount or
bullion which should actually have made
200 100000 silver dollars. In other words,
there is now an amount of bullion, in
cess of the reserve necessary to cover the
S154 600 600 treasury notes, in the treasury
which, if coined, would make $4,000, 900 silver
dollars, against which the Seignorage bill
IS TO issue paper currency, and put 500
NtjWW IN the treasury anu DeIp lHc govern
nE:nt out of its financial difficulties.
frhis explains the matter very clearly
4 a vet concisely. 1t would be difficult
III throw more light upon the subject
ispthc same space.
,f,be Recorder is doing good missionary
wyrk in financial matters. In its analy-
sis of our currency situation it presents
the bottom facts when it says that the
I)!,ple of the United States are adding
to their number at the rate Of about two
miyionS every year. Now, as business
crews with population, the circulation
the money of the country-ou%ht to grow
etrally with its population and its bust
Mes But our circulation is growing
slNuller every day, relatively to our
co temporary puts it, no country ever
pa ulation and our business. AS our
pr zncred with a contracting currency
None ever will. We shall never see
ar lher period of such prosperity as we
L 2 had until the contraction of the
cnf' II is stopped
Ma leading republican paper talks
+ >i'shion, regardless of the money
J. 'n}onopolsts, there is hope for
ot The Recorder strips the
'&n of every vague and CON
- when it makes the point
thea lraTency of the country should
grow us. iii its population and business.
This proposition cannot be successfully
controyertcd. If our population should
fall off at the rate of two millions
year it would then be in order to talk
about contracting the currency. But so
long as our population increases at that
rate. with a swelling volume of business,
it is criminal folly to contract the cir
culation.
When the situation is thus described
no amount of twaddle about the decline
Of silver. international action, and other
things can hide the true aspect of the
question. With more people and more
business every year we need more
money
Never mind about the haZy talk of the
cOntractioniSts concerning the depre-
citation of silver, and the influence of
other governments. The main point to
consider is this: When we see our popu
lat0n and business doubling rapidly,
shall we expand our currency or strike
down half of it? There can be but one
answer to the question.