St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-03-23
THE MONEY BAROMETER.

THE MONEY BAROMETER.
A government is in its business af-
fairs, after all. no more than an indi-
vidual with immensely increased capa-
billtleS but subject TO the same laws of
business. In the longer run. proper
toned to the magnitude of its resources,
government cannot safely do business
in manner that would be recognized
among business men as unSound. a
prolific source of governmental disaster
is in the erroneous idea, so widely en-
tertained, that the government is some
thing distinct from and superior to the
individuals of which it is composed; not
subject to those general laws which con-
troll men, capable OF doing with impu-
nifty that which would surely involve
failure if attempted by men.
The tables published by the Statisti-
clan of the treasury, showing the diff
ferent kinds of the nondescript cur
rency of the nation paid into the treas
ury for customs for period Of several
years, aud covering years called pres
porous as we'll as the years of depression.
afford an illustration of the similarity
of governmental and individual financ-
ing, and become fairly accurate ba-
rometer to Indicate the changing con-
ditions AMI the approach of financial
storms. One would expect that in the
times when there was no question, DO
suspicion of the ability of the govern
ment to maintain all its money issues
at par with each other they would
flow indiScriminately into the treasury
in payment of taxes. Just as naturally,
should such suspicion find lodgment
in the minds of men, whether founded
well or not, it would occur that the par
ticular form Of money preventative
pay the taxes.
Ibis is nothing but what would occur
under similar circumstances in the bust
ness world and among business nell.
1t has its source in tins inherent and
sound disposition of men to make gains
and avoid loss. a disregard of it would
bring the whole business fabric to chaos
in snort order. We see it everywhere
III times of panic, when the money that
Is everywhere current, the gold coin. is
boarded and the money representatives
are forced into circulation as rapidly as
possible, every holder of the doubtful
paper being anxious only to get rid of it.
either iii paying debts or in buying
things of staple use and stable value.
The latest report Of the statistician of
the treasury contains the readings of
this monetary barometer for several
years, and the changes in the volumes
OF the different forms of currency under
the different financial conditions re-
ceived for duties are most valuable and
interesting lesson. The table gives the
percentages of the various kinds of
money received for customs at New
York during each month from January.
1899, to March, 1894. 1t gives in sepa-
rate columns the percentage of the en-
tire receipts paid in gold coin, silver
coin. gold certificates. legal tenders and
the Sherman treasury notes.
On January, 1890, one-tenth of one
per cent Of the receipts were in gold;
no silver was received; 925 per cent
was in gold certificates, and 4.6 per cent
was in greenOacks. The Sherman act
was approved i'll June, 1890, and in
August 3.5 per cent of the receipts were
i'll these notes, increasing to Is per cent
Ill November. while the gold certificates
fell off to so per cent. In 1891 gold
formed from one-tenth to two-tenths per
cent; the gold certificates began at IS
per cent, fell rapidly to IL per cent in
September, and rallied to IS per cent i'm
December. Silver certificates reached
&c per cent in May, but fell off to 8 per
cent at the end of the year. Greenbacks
in September were % per cent of the re-
ceipts. as compared with per cent at
the opening of the year. and IA per cent
in December.
In 1892 the gold and silver coins
showed diminishing percentage, while
gold certificates, which were &c per cent
III January, were but A per cent in
December. Silver certificates were 4.3
per cent in January, rose to Is per cent
for June and July, and fell to 90 per
cent in December. Greenbacks were
Is per cent III January, rose to 46 per
cent at the end of the year; while the
Sherman notes opened with I45 per
SSbts DSShuiC pei lii may, OIL DER
cent in July, and were 40 per cent in
December. Up to June, 1898, gold and
silver coins practically disappeared;
gold certificates began with SO per cent.
and dropped to nothing in june; silver
certificates began at 15S per cent. rose
to 81 per cent in May, fell to per cent
in August, and ended with 81 per cent
i'll December. Greenbacks began the
year with AZ per cent, rose to 80 per cent
i'll June, and fell to 11.6 per cent in
December. The Sherman notes opened
with 33 per cent. rose to IS per cent, fell
TO per cent in August, and ended the
year with per cent
On June 80 the president summoned
congress in special session to repeal the
Sherman act. The effect showed inme
diately III the readings of this barome-
ter. There had been no gold paid in for
customs for the preceding ten days. BY
July p gold c sin was % per cent of the
receipts, and gold certificates began 10
come back and were per cent. The
gold payments increased rapidly to O.
per cent i'll Septe mber, and gold CERT -