The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-11
AN ABUNDANCE OF CURRENCY.

One of the stock arguments of the enc
mics of our present monetary system is
that the country is suffering from a con-
traction of the currency. For years past
the fomenters of discomfort have been
ringing the changes on this idea. They
charge that because of the small amount of
currency in circulation, owing to the steady
contraction for a series OF years, the bank
ers and manipulators of Wall street are
able to control 1T and withhold 1t from the
people, whenever they choose, thus causing
stringency and hard times. They cite con-
traction of the currency as one of the rea-
sons why, to use their favorite phrase.
1.-The rich are growing richer and the poor
are growing poorer" They attribute the
low price of farm products and Of farm
lands in great measure to this cause. They
make all sorts of wild statements about the
per capita circulation in former years and
at present TO show that there is not cur
rency enough to meet the demands of bus
mess. These and similar assertions are
made so positively and with so much plaus-
ibility that even many frirucs OF sound
money have come to think that if we had
enough currency TO meet the demands of
trade the country and people would be
more prosperous and the advocates of in
aation would be deprived of their main ar
gument
Nothing can deprive men of an argument
who -artfully and persistently misstate the
truth. The basis of the argument of those
who demand an increase of the currency
is that there has been a great decrease.
The contrary is true. Instead of contrac-
ton for many years there has been
steady expansion of the currency Since
1877 our circulation has more than doubled.
Then it was S722. 314SSs. while now it is
s., 5C9, 725. 900. In 1878 the total circulation
was s72s 49, 63i in 1879 1t was sSlS 631, 7s3; in
1880 IT was s973, 3S2 22s. in 1890 it was Sl,f2s,
25l 30. and on July l. 1896. it was 81. 500 725.-
2OO In 1880 we had $50. .557 in standard
silver dollars in circulation. against s52 u.s.
600 now of silver certificates we had s.. 49,
500 in circulation in 1850, against 1886 3l3. 900
now; of gold coin we had s225. 900 coo in 1850.
against si55, 900 coo now, and of gold certifi-
Gates 81 793. 800 in 1850 against 600 now.
The increase in subsidiary silver and in
treasury notes issued under the Sherman
act makes the present aggregate circulation
mere than double what il was twenty years
ago. The only contraction of any conse-
ouence that has occurred has been some
thing more than 500. 600 IN national
bank notes. but this still leaves net in
crease I'm other forms OF currency during
the period named of more than ssoO.00o.oOo.
The assertion that there is not currency
enough TO meet the requirements of bust
ness is as untrue as that there has been
contraction. There is an abundance OF
money 10 meet all the demands of trade.
The trouble is not lack of money. but a
lack OF business. Millions OF dollars are
to-day lying idle. not yielding cent OF
profit to the owners. The savings banks
are congested with money. At present no
person or institution that has money will
lean or invest II because OF the uncertainty