The San Francisco call., 1897-06-22
LOSSES OF PAPER MONEY.

To the Editor Of the San Francisco CdlI-SIR:
Before attempting 10 show the certain losses
OF paper money during the last thirty-three
years in the form of United States notes or
green backs, National bank notes, silver GER
tihcates, gold certificates, currency certificates
and fractional currency, perhaps it will be
well to remind the reader that money disap-
pears in many ways and is seen no more in
the hands OF the people or in bank or treasury
vaults, as for example some OF it is lost and
destroyed in the fires great and small which
are constantly occurring all over the country,
and some of 1t is lost at sea and on the lakes
and rivers, in the pockets of persons drowned,
In the valises and trunks of passengers and in
the strong boxes of lost ships and boats, and
IN other ways l need not enumerate.
The loss OF 30 cents out OF every 800 in the
course OF year may seem low estimate to
many readers, but | shall be content with
much smaller percentage for present pur-
poses although in The case of fractional cur
rency the loss of nearly So, 100000 in sixteen
years out of nearly $46, 900 600 was recognized
and declared by act OF Congress June /, 1879,
loss of Is per cent in sixteen years. or more
than 81 out of every 500 in circulation, and
there can be but htIle doubt that fully per
cent year disappeared during those sixteen
years. But do not compare the loss OF green
backs and other forms of paper currency with
that OF the more constantly handled fractional
currency.
Through seventeen volumes of figures pre-
pared by the several Comptrollers of the Cur
ISncy 1 nave laDoriOusiy searched In vain tOr
any ehort on the part of these able financiers
10 show the true percentage OF loss which oc-
ours every year in the paper currency of the
country. Hon. John Jay Knox. one of the
ablest and shrewdest treasury officials this
country has ever produced, in his report for
the year 1870, was the first that l can find who
ever men toned the subject, essential as il IL 10
know how much money is annually lost in
order 10 come anywhere near being able 90 re-
port how much money is In this country, and,
therefore, how much can possibly be in circu-
laton.
On page 40 (xlix). report of 1875. Mr. Knox
cites statistics of 2S6 New York State banks
which went out of business in 1862. when
was loss of 81, ,3S6 337 out of the $50, 754,-
o!5 IN the notes issued by these banks, being
loss OF 2 63 per cent. He ais gives statistics
OF other State banks showing a similar state
OF facts, and then he gives list of fifteen
National banks which had failed prior to 1870
and states that 1. 3 per cent of their notes
not yet redeemed in 1878; but, as in the case OF
tne state banks, he gives no dates TO show how
long the notes of the several banks mentioned
nad been in circulation, and can get nothing
definite out OF such information to the per-
eehtage OF loss year by year. For example,
iake the bank OF Attiea. n. Y, which went
into the hands OF a receiver April IA 1865,
and In 1879. ten years after, the loss OF notes
Is given as LILO per cent, but he does not state
now long the bank was in existence.
IN 1885 Comptroller Knox again takes up
the subject OF losses of the National bank
notes, ana we now ii nd more definite informs-
non as 10 the fifteen bank failures prior to
1870. We are now given the date of organiza-
ton OF each bank and the date when each one
passed Into the hands OF receiver, FeE ex-