The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-04-27
ERRORS OF POPULISM.

ERKOkS OF fOfOL1oM.
n ClFculas3ou In 1885 and less Com-
parsd- More Nosey rer Capita,
ami Betser, I'm 1885
Copyright. 1sss, by H. W Craven
In former articles OF this series evidence
has been presented showing conc,ussveiy
that Pcpuiist estimates Is 70 the amount
Of money In the country in 1856 are gross
y exaggerated.
Tho way row seems clear for . correct
comparison oesveea the amount Of money
IN circulation II that time and 1t the
present time
The expression. money In circulation. u
hare used ~ It Is in the government reports
- meaning. money in the country outside
o. the United States treasury
Popuiisr leaders %. when speaking OF
1s6& universally use this expression -
meaning the total amount OF money then
outstanding They make no deductions
whatever from this total sum- When they
speak Of the present time they attach an
altogether different meaning to the ex-
preston They use II as meaning the
total amount Of money In the country. less
the amount in the United States treasury.
less the amount held by national banks as
reserves. less the amount they guess has
been lost and destroyed. less the amount
they guess ID held by private banks as re-
serves. less the amount they guess ID
boarded
DonneIly considers his own estimate a.
70 the amount Of gold In the country to
be better than that Of the mint and treas
ury onlcials. and says. "A gold coin 10
something rarely or never seen BY the CT
liens OF our country" He Is Of the cpin-
ION that one-senth of all the silver coined
Ia this country since ISIS has been lost.
The use Of this expression with a dou-
Bile meaning greatly aids Populisfs in max
ing out very large circulation In 1866
ana very small one at the present time.
OF course, this method Of comparison 10
very unfair; but this is no objection to Il
IN the eyes Of Populiss demagogue.
II II right. In estimating the amount
or money In circulation now, to make the
various deductions named, then 1t Is right
to make them In estima ting the amount Of
money In circulation In 1864 1t does not
make % much difference what meaning u
given to the expression, but 1t IL es-
sential, In order to be fair. that this mean
ing should be fixed and definite-in other
words. that the test employed should b
the same for both periods
Of AL men. living or dead, the secretary
OF the treasury In 1855 was In the best po-
sition TO know the facts in regard to the
circulation At that time. And this fact is
recognized by Populist writer's. They
know that people will accept his state
ments. made In his Official reports at the
time. as the very best evidence-evidence
tnat must be accepted as true unless inn
peached by other evidence that Is positive
~ overwhelming. Falling to find anything
there with which TO substantiate their pre-
posterous claims. at least two OF them
emery and Smi;h-have published q
Forged quotation from the report Of Sec
rotary McCulloch for December, 1855. and
sent It forth as evidence. They knew that
exceedingly few people have access to
that report and. on that account prob
ably. thought the forgery would escape
detection. Special attention was called to
this forgery In a former article.
IN his report of December, 1866, @ Nc
Culioch made an estimate OF the total
amount OF the paper money OF the coun-
try on October 81. 1866. when the volume OF
government notes was largest So far as
known TO the writer. that In the only time
In that year for which he made any such
estimate. This estimate of McCulloch's
forms the most reliable basis upon which
to calculate the amount OF money then in
circulation. Therefore, the two dates Sc
lecfed for the comparison are October 81,
1865. and October 81. 1885, exactly thirty
years later.
Only three items are lacking in Mccul-
loch's report to give us his opinion as to
the exact circulation on October 81, 1866,
namely. the cash in the treasury, the coin
circulation. and the amount of 7-aos used
as money.
On the first OF that month there was
SO. 40 In the treasury. and 1t will be
reasonably accurate to count that as the
amount In the treasury on the last day OF
the month.
to be controverted, state that at that time
SIS 100000 in coin was In circulation on the
Pacific coast. 1t Is well known that
throughout the rest Of the country coin
YVES net in circulation.
OF the 40 notes McCulloch saws "many
OF the small denominations were In nae
as money. Since the smallest denomina-
ton was $50; since neither the Comptroller
OF the currency nor the treasurer Of the
United States at that time reported the
7-3os as being appreciably in circulation:
since the secretary. in another part of the
report. places the total volume OF money
at less than $500, o0O. 600. which could not
have been the case had the 7-Sps been
greatly used as money: since he estimated
that only $3o.ooo,o00 Of the per cent. and
compound interest notes, which were
much better adapted for use as money
than the 7-3es, were in circulation. II
to count $50 ooo 400 OF the 7-3Os as being IN
circulation at that time.
With these three items thus determined.
taking the figures as to the other items
from Mcculloch's report. the amount Of
money In circulation October 81, 1865. was:
Greenhacks and fractional
currency -....-.- ...-....-.-.. 1854. s.13s %
NauonaI nank notes ........... is .DD. 900 %
STATE pahk notes ...........-... 65.001.0U0 %
Five per cent. and compound
interest notes -........- $1,000. 100000 90
Soin ...-.-.-..-.-. ......-........ 2s,00. go 90
Seven-th'rty notes .............. $1,000. 900 %
s--
Total .......... ............ .$7se 2ls ,0ss %
Deduct cash in treasury ....... 56S3S 40 %
Money In circulation s772 ISL 5es 10
Estimated population. 81. 500 900.
Circulation per capita. s2l06
But In October. 1865. Il took Ills 60 In
greenbacks to buy 81 in gold: and some OF