The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-20
BILLION DOLLAR CONGRESSES.

oaIe6 udIu pIOteCllOn LOT SunUfy lnuuS-
tries, disposed of the surplus in the
treasury and made way for deficits by
its extravagant appropriations, Speak
er Reed, when expostulated with for
permitting it, complacently drawled
out that this is a billion dollar coun-
try" The voters took early opportun-
1ty to pass judgment upon the policy,
but, unfortunately, the Fifty-frst con-
gress had not only made deep drafts
on present, but had mortgaged future
revenues by the trick OF making ap-
preparations continuing during a series
of years, so that 1t was impossible for
Its successors to wholly reverse it's
policy, although they reduced the ex-
penditures in many directions. 1t is
now certain that the appropriations
of this congress, the FIRST since the
restoration. will not only equal the
F'ifty-frst, but will exceed it's appro-
priation by about SAC, 900, 900, and again
we have the assurance of those who
defend this extravaganza that this is
q 0OA1dL COUNTY.
There is one consequence Of this,
aside from many others as injurious,
that deserves more attention than it
receives, and which accounts for much
that has been disturbing in politics
and that menaces the future. Last
November over six million voters cast
their ballots for candidates represent
ing a policy based upon the belief
that there is not sufficient currency in
circulation in this country to float cas-
lily the exchanges. Whether they were
correct or not is immaterial; it is ma
terial that SO nearly a majority of the
voters believed it. At the meeting of
the Sound Money league in New York
city recently, Mr.. Dodge said that a
Southern delegate to the Indianapolis
sound money convention told him that
the real cause Of the silver movement
in the South was the dearth of ready
money; that in large sections trade
was actually reduced to barter for
lack of money or its representatives,
and that the free coinage movement
would not subside but would increase
until this condition was relieved. Over
the West. the same feeling prevails.
Whether it is well-founded or baseless
is another question; the fact is it ex-
lists
On Jan. L the treasury report states
that there was cash in the federal
treasury amounting to 1858, 463, 644. and
that there was in circulation, which
includes all outside the treasury. ST.
6oO,223, 400. This makes a total Of 81
1851, O44. While it is technically true
that all money outside the treasury is
lin circulation" it is not true in the
popular sense, and bank reserves held
against deposits and circulation and
money in the redemption fund are not.
in the common acceptation or for the
actual exchanges, Gin circulation"
Bank deposits are not all cash." they
are largely credits, but the reserve
which is percentage of them, must
be cash. Last October the national
banks held in reserve S543, 900. 900
against deposits of 81, 79S, 700, 900. The
amount similarly held by savings and
other banks constitutes a large addi-
ton to this money, assumed to be idle
because not used in making actual ex-
changes in the markets. There is no
official data to give accurate informa-
ton of the amount thus held in re-
serve, but assuming it to be half that
of the nationals, we have a total Of over
$75O,OOO,OOO, leaving something like
$500, 900 in active movement. AS
Stunning that the whole amount of our
currency can be treated as in circu-
lation the appropriations of this con-
gress will require that 81 Of each 50. so
OF the whole must pass out of the
markets once in two years into the
treasury, ceasing to be ''in circulation
and becoming taxes. Assuming that
the money in circulation" is that
outside the treasury" amounting Jan.
1 to $1,605, 223, 400, the appropriations of
congress require about one-third to
pass out Of the channels of trade into
those of taxation each year. 1t is
worth while to consider whether these
billion dollar congresses" are not fur
nishing provocation and ground for the
assertion that there is not sufficient
currency and whether the movement
for free coinage is not finding in them
its main-spring.