Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-10-13

gls- con
Gold certificates ........ .......' 80. 'o55
Silver standard dollars ........ ?9 +5S' % S6i
Silver certificates 900. 90, 90 ~ ~
Silver subsidiary coin ......:.... o'o5'' 4o'
TT ms5 5St e9'es Oh iS" loe. 1852 52i
U ba Ss, states notes 'e ..... 2s1 1854 73i
Currency certificates 800. So ygg
National Bank notes ............ ZIo'iSo'o-o
Total ...... ......... .......'' 94''''' 4'''V' I
Here we have found the volume Of
currency reported to be in circulation
placed at S1.549,169,634. But in this
sum the reader will find included S46S.-
995 900 of gold coin and S231,954,l34 OF
greenbacks, while no such sum OF either
is in circulation. But you may say, How
do you know? How dare you call the
government reports in question? II
anyone raises this question let him con-
sider vel the following facts and then
decide for himself as TO the accuracy Of
the government reports The green
backs have been in circulation for more
than thirty years and subject to the
losses by fire and otherwise inseparable
from such circulation. Yet no allowance
is made for such losses in the govern
ment estimates save for S1,OOO,OOO
known to have been destroyed in the
Chicago fire Fer the losses in all the
other fires and wrecks and disasters,
for the losses on the field OF battle, where
many Of them we're first issued in pay
ment Of our soldiers, for the loses in
separable from all the vicissitudes of
trade no allowance is made. And in
estimating the volume Of bank notes
and treasury notes and silver coin the
same policy is pursued. No allowance
is made for those notes and coins de-
stroyed by fire, or otherwise lost. SO
evidently the reports of the volume Of
money in circulation issued by the
Treasury Department will depcrSfarther
from accuracy year after year.
What such losses have amounted to
no one can say, but such loss is esti
mated by none at less than $5O,0000,0O0.
BY many Il IS estimated at many mill
ions more. But let us take the minimum
estimate as to the less Of greenbacks,
bank notes, etc, and pass on to the con-
sideration of another item.
The gold in circulation is said to be
S462, 995, 1863, an over-estimate by $3.50
600, 600. But why say an oyer-estimate?
Because no such sum as s464000,0 600 of
gold can be accounted for, because the
methods of making up the estimates Of
gold in circulation lead to Inevitable
error on the side Of over-estmiat!on.
As to the first point, the director of the
United States mint. in his report for
1888, on the prudoction Of gold and
silver, candidly admitted that the most
industrious inquiry failed 10 bring to
light a very considerable portion CT the
gold said to be in the country, and that
at least S275, 100000 of the estimated
gold coin could not be accounted for.
So we may safely conclude that the
stock of gold is oyer-estimated by $780,,
100000
So, instead of $1,000, 100000 of money
in circulation, we have not at the outside
mora than $1,000, 100000 Divide this
by II, 645, 600 people, and we have a per
capita circulation Of S16.75 So in 1865
we had a circulation of s53.2S per capita
in 1873 Of S1S.04, in 1888 Of something
less than S22.91 (the sum given in the
treasury statements), and to-day of not
more. probably considerably less, than
S1675. But 100 much stress should not
be attached TO mere estimates OF the per
capita of money in circulation. however
reliable such estimates may he. Al
though often taxi n as such, the per cap
tia of money in circulation is of itself no
evidence either of p,ertitude or scarcity
of money. 1t IS no. merely the volume
of money that makes money scarce or
plenty. but the work 10 be done by
money as compared to its volume, and
to increase the work to be done by
money. that is TO increase tie number
of exchanges TO be effected by money,
must have ne same effect on the value
OF money as to decrease its quantity.
1t must make money relatively 10 the
demand scarcer than before. and, cOnse-
uuen;ly. dearer. And then let it be re-
membered that the demand for money
must grow just as civilization advances
and labor becomes more productive and
more diversified. Consequently, in an
advancing state the demand for money
will increase faster than the population
and the same per capita circulation that
was sufficient when the state was more
backward and industries less diversified,
will prove altogether insufficient at
later period when the diversification Of
Industries is carried farther SO just so
long as we are advancing in the scale Of
civilization we will have need Of the in
crease in the volume OF money to a
greater degree than increase of popua-
ton. Simply to maintain the per cap-ta
of money in circulation will not main
tain prices. for. j"st as civilization adj
yances. the need OF moc2y grows great
or. TO maintain currency Of stable
purchasing power we must increase the
volume of money just as the demand
for money. that is, the work to be done
by money, grows.