The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-06-03

wheat adds to the stock of grain. Gold
certificates, silver certificates and cur-s
rency certificates are only issued against
deposits of gold, silver and greenbacks
respectively, and the issue of these GER
tifcates does not represent any increase
in circulation, gold and silver and green
backs being withdrawn from circulation
just as these certificates are issued. For
the statement of the World that two
billions of money is in circulation there
is no excuse; it is directly contradicted
by the treasury statements, yetgit is go
ing the rounds of the gold press uncon-.
tradicted ~
We have said the treasury statements
give the money in circulation at 81, ,540,
OO7, ,0S2; but included in this sum fs4 gold
coin to an amount of $454, ,225, ,656, ana Of
greenbacks $237 ,349 ,381.s No such sum of
gold coin can be accounted for, and .2s
no losses of greenbacks by fire or other
wise are allowed for during the thirty
years they have been in constant circula-
ton, save $1000,000 estimated to have
been destroyed in the Chicago fire, and
as the same holds good of treasury notes
and bank notes, as well as silver, it is
manifest that the money in circulation
is over estimated in the treasury state
ments, probably by $250,00 900 of gold
and $50,000,000 of greebacks and other
currency; so that the total amount of
money in circulation probably does not
exceed $1,000, 100000.
That the quantity of gold in circula-
tion was greatly overestimated was ad-
mitted in the report of the director of
the mint for 1888, on the production of
gold and silver, where it was stated that
the Industrious inquiry failed to bring
to light a very considerable portion Of
the gold estimated to be in the country,
and that at least S275, 1000 900 of the esti-
mated stock of gold coin could not be
accounted for. Estimates of the stock of
gold in this country are made up on the
following basis: On June 80, 1872, the
stock Of gold in the national banks and
in the United States treasury was deter,
mined; to which was added $40, 900 900,
estimated at that date as the amount of
gold in circulation on the Pacific coast.
A total of S135, 100000 was thus arrived
at as the probable amount of gold in
circulation at that date. Since that time
the official estimates have been COM
piled by adding to this initial stock the
coinage of the mintS mot including re-
cOinage), and the gain (or loss) by i'm
port or export as registered at the Gus
tom houses, and deducting therefrom an
annual average allowance of $5, 500 900
for gold coin used in the arts.
Much gold is carried out of the coun-
try annually in the pockets of travellers,
which is not recorded in the custom
house returns, and there is no doubt that
much more gold coin is used in the arts
than estimated. Such being the case. it
is apparent the Discrepancy between
the actual amount and the estimated
stock of gold coin in the country has
grown and must continue to grow from
year to year as long as the present sys-
tenn in making up the estimates is per.
sisted in.
But to return to the question: Would
the free coinage of silver lead to the con-
traction of our currency? Most decided
ly it would not. Indeed, contraction from
the expulsion of our gold would be quite
impossible, for any export of gold before
silver was coined to take it's place in
our currency would result in raising
prices in Europe and relatively forcing
them down in America, with the result
that America would become an attrac-
tive market to buy in, and gold would
fow back to America in payment for
our grain and cotton and other produce,
The truth is that. on the opening Of our
nlirts TO silver, the demands for that met
al would increase while the demand for
gold decreased Consequently silver
would rise as gold fell, and as silver
rose measured by gold, silver-using peo-
pie would lose the premium on gold
which they no enjoy on all their sales to