The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-16
depends to establish wha, he has set out

to prove
Hugh Mcculioch. comptroller Of the
currency from 1853 to March. iscs. and
secretary Of the treasury from 1865 to
1859. IN his report Of December. 1856. says:
me paper circulation OF the United
States on the 3ist OF October last was
substantially as follows:
L United States notes and
fractional currency - 1854 rs ess a
Z. Notes Of the national banks iss,ooe.es @
j. Notes OF state banks, in
eircing outstanding issues
of state banks converted in
70 national banks .......... S. n10n 10
Total .-....-... .-........... .s7o4. rs SSS .
The amount Of notes furnished TO the ma
uonal banks up to and including the slst
OF October was little over s36. COO 90 but
IL is estimated that saD1ooo of these had
not been put into circulation
In acditson to the United States notes.
there were also outstanding So. SIS 80 per
cent treasury notes and S.3.0ie1io COM
pound interest notes. OF which IL would
doubtless be safe to estimate that so. 90 90
were In circulation al currency.
From this statement IL appears that,
without including seven and three-tenfhs
notes, many OF the small denominations OF
which were In circulation as money. and
all OF which tend in some measure 10 swell
the imitation. the paper money OF the eoun-
try amounted on the 3lst Of October to the
sum of s734. 2lS.nss. D."
And he states in another part OF the re-
port that 1.-The circulation. bank and nation
al, had reached the startling amount Of
upward of s71o.09oe COO 80. 1t win be no.
ttced that McCulioch reported only q small
part OF the per cent. and compound inter-
est notes as being In circulation as money.
These notes. however were more apt to be
Used as money than any OF the other tenn
porary interest-bearing notes Of the gov
eminent, because they were a legal tender
for face exclusive Of interest. while the
others were not a legal tender to any ex-
tent. Especially were they more apt to be
used as money than the notes bearing
$40 per cent. interest. and hence called
7-3es. for besides being a legal tender.
which the 1905 were not. they were issued
in much smaller denominations than the
7-Sos. Therefore IL only Is per cent. Of the
outstanding Per cent. and compound in
terest notes were used as money. a much
smaller proportion of the 1905 were used as
money. At any rate. the amount Of them
In circulation was so small that McCulloch
did not think it worth while to include
them in his table OF notes in circulation.
Salmon P. Chase. secretary Of the treas
ury from 1851 to June 30. 1864. and chief JUS
uce of the supreme court of the United
states from 1854 TO 1873 speaking Of the
per cent. and compound interest notes said:
These notes never entered largely or per-
manently into the circulation 90. With
the exception OF eight months Chase and
McCulloch were at the head of the treasury
department from 1861 to 1859. They issued
and sold the greater part of all these notes.
1t was part of their official business 10
know TO what extent the notes entered into
the circulation. The one in his official re-
port In lS6o. the other in an oninion deliv-
cred from the supreme bench in 1870. de-
clared that only small part of the per
cent. and compound interest notes were
used as money. Against the statements OF
these two men. Of what avail in the minds
OF reasonable men is the statement of
Weaver and PETER. made a generation
later. that all the per cent. and compound
interest notes were used as money?
Emery and Smith both pretend TO quote the
exact words Of McCuiloch. in his report of
December. 1866. saying that about 5000. co.,
0o was In circulation. The alleged quota
tion Is a forgery. Nothing like ii is to be
found In the report. When Populist lead
ers have to resort to the forgery of govern
ments reports to substantiate their claims
they acknowledge their great weakness.
Freeman Clarke, comptroller OF the cur
rency from March. 1865. to July, 1866. in
his report of December. 1866, substantial
ly agrees with the estimate Of the secre-
tary OF the treasury as to the amount OF
money in circulation in October. 1866. but
he estimates that only $10.o00, 900 Of the
compound interest notes were In circ lla-
ton as money. But he mentions no part
OF the 1905. however small. as being in
circulation as money go.
President Johnson, in his annual mes.
sage of December 4. 1865. says: Five
years ago the bank note circulation of
the country amounted to not more than
500. 900, 900: now the circulation. bank and
national exceeds $7o9, 600 go. The simple
statement of the fact recommends moro
strongly than any word of mine could do
the necessity OF our restraining this ex-
pansion' 90.
+. Z. Spinner, treasurer of the United
States from 1861 to 1875. in his report Of
November l, 1870 not undertaking TO give
the bank note circulation, gives the total
amount OF United States currency out
standing on June 80. 1866, as follows: