People's voice., 1896-03-19
The rlOney in Circulation.

The rloney in Circulation.
In KaBsls prejudice exists against
the present administration, and for
that reason | will briefly refer to a
few facts shown by the report of
Secretary Foster during HarrisOn's
administration.
The repOrtudated December 5, 1892,
claims that there were November ],
1892, 81 sos, l39, 1888 in circulation or an
amount equal to $2442 per capita.
Senator Plumb in a speech delivered
in the United States senate not long
Afterwards estimated the amount in
circulation 10 be less than $40 per
capita, and this last winter Senator
Butler placed the amount at not above
IS per capita. In considering the
treasurer's report, we should keep in
mind the fact that it is made from
the records Of that Office and that
those records show the amount of
money that has been coined and issu-
ed, also that after deducting the
amount that has been recOined and
re-iSsued, and the amount that is in
the treasury all other money is re-
ported as in circulation.
This is very misleading for the
reason that no account is taken Of the
vast amount Of money that has been
lost and destroyed, or which has been
used in the arts, or Of that that has
been taken to foreign countries and
not returned, Of the money that is
boarded, or that which is held as re
serves.
The report referred to shows that
$l65, 224, l37 of the money in circulation
was National bank-noteS, and the act
of June 20, 1874 provides that all Ma
tiOnal banks shall keep on deposit a
sum equal to five per centum of the
circulation, to be held and used for
the redemption of such circulation.
National banks are also required to
keep on hand in money, from fifteen
(l5) TO twenty-five (25) per centum of
their deposits.
The report shows that on November
l, 1892 there was on deposit in Ma
tional banks the sum of
50, 296, ,O76,1S5 or the sum of 1894, 72S, 1898
more money than his report shows
was in circulation. Estimating the
lawful reserve required to be held by
National banks on deposits at twenty
(2Ol per centum, and we fud there
we're tied up by the National banking
law in the National banks the sum of
1853, ,2l5, ,237 as a reserve to pay de-
poSits, which money could not be used
for any other purpose.
The state laws govern the reserves
to be held by state and individual
banks on deposits. In this state
twenty 10y per centum is required
and that is probably not above the
average required in other states.
The deposits in state and individual
banks far exceeds that in National
banks but as l have not the exact
data in this estimation will place it at
the same.
We then find that of the amount
claimed to be in circulation, there
shonld be deducted the following
amounts: Five per centum of circula-
tiOn to redeem National bank circula.
tion-sS, 26l, ,2O6.
Twenty per centum of deposits to
redeem deposits in National banks
1853, ,2l5, 237.
A like amount to redeem deposits
in state and individual banks-s459.-
2l5, ,237.
Total amount held as a reserve for
deposits and circulation, 1926. .69l $50.
The report further shows that, of
the amount claimed to be in circula.
tion s2S,3SO,OOO was in 5000 certif.
Gates. and S69,O6O,OOO was in $4,000
certificates.
ThuSe certificates were not intended
to circulate as money, and in fact did
not so circulate. These certificates
with the legal reserve amount to the
sum Of 81, ,024, l3l $50, which deducted
from the amount reported as in circu.
latiOn leaves the insignificant sum of
only $751;, ,O0S, ,05S, or SO per capita as
the actual amount Of money in circu-
latirn, making no deduction fol
moneys that have been lost, destroyed
and boarded.
A reasonable estimate would probab.
ly be 50 instead Of s2!.42 per capita as
claimed by Secretary Fosters report.
WV d..