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

est made the rate of interest on a 500
bill exactly two cents per day, which
made the circulation of interest 50 easy
that II was nc impairment to their cir
culation.
Hugh McCuil0Ch was appointed as
Secretary Of the Treasury by Mr.. Lin
coin in the BELIEF that ne was opposed
10 violent contraction Of the currency.
But Mr. Lincoln was sssassinated, and
Mr. McCullOch, continued in Office by
President Johnson. turned on his
friends. He at once got to work with
fixed purpose to bring our paper to a
par with gold by contracting our cur
rency. With this end in view, he pre-
vailed on Congress TO authorize the
funding of the interest-beaTing notes,
and at the same time he proceeded to
redeem and cancel as rapidly as possible
the United States legal tender notes. IA
milarly known as ''greenbacks." Thus,
whiting two years. the certificates of in
debtedness and five per cent. legal tender
notes had been paid. or. rather, funded
into interest bearing bonds. while the
compound interest-bearing notes had
been reduced by $40. 600 900. the Seven
thirty notes" by $500 600 900. and the
greenbaeks and fractional currency by
S70.000.000. Thus a currency contrac-
ton of over 100000 coo was effected.
But contraction did not stop until all
the interest-bearing notes had been re-
tired Mr.. McCUlloCh went out of Office
in 1869, at the close Of the Johnson adj
ministraJin. but his policy os contraction
was pursued by his successors.
And so we find that by July /. 1873.
the per capita Of money in circulation
IN the United States had been reduced 20
$500 On that date there was in circu-
lation as given by the treasury state
ments:
Gold ION the Pacific slope).......$ 5000 OoO
Currency certificates $500 ..... 81 Oh 600
United States legal tender notes
tCrcenbaCkS) ...... ...... ....... SIC. 9i9. lf)
National Bank notes ............. 39S $50 .475
Fractional currency ...... $1,000. IS. 016, COS
State Bank notes ................. 1.319.lA
-
Divide this sum by the population of
The United States estimated al II .677 900
on June l, 1878, and we arrive at a per
capita circulation of S1S.04. Thus with
in eight years the per capita circulation
of the United States fell from $50 to SIS.
The result was that in spite Of much
enlarged use Of credit. prices fell, those
engaged in productive enterprises were
bankrupted. and a paralysis Of industry
with the resulting throwing of wage
earnerS out of work, lower wages, suf-
fering and despair, became chronic But
stiE contraction went on. ana five years
later the volume Of currency in circula-
ton was estimated at $729 1872 ,634, a per
capita circulation of but S15.32. But
then the pressure for relief became so
great that the mO1ey-lenders. bent on
enhancing the value Of money by con-
traction. were forced TO yield to a degree
10 the demands Of the producing classes.
The contraction of the greenback cur
renCy was summary checked. and the
Bland Act directing the purchase and
coinage OF not less than 100000 worth
Of silver monthly was passed. The re-
suit was that prices rose, our cOmmodi-
ties went further abroad towards paying
our debt our industries took on new
life, and this brought gold here for in
veEtment So cur currency was ex-
banded, and as it was expanded prices
rose.
Thus, IN 1888. we find the per capita
circulation had increased as reported in
the treasury statements to S22.91 per
capita. But the actual circulation was
not so great. for the faulty method en-
ployed in making up the reports. and
which we will refer to presently, was
beginning to tell on their accuracy. But
here is the circulation as given on July
1, 1898, in the treasury reports. The
amounts given do not. of course, in
elude the moneys held in the treasury
vaults:
Gold coin ......... ...............3 3i4 $50. 4a5
GOIu ceruncateS ......... ....... %. SlI. 3I0
Silver, stand dollars ............ 1851 $50
Silver certificates - -90 rcc