The San Francisco call., 1897-06-29
TOTAL LOSS OF PAFER MONEY.

To the Editor Of the San Francisco CdH-sIR
1t Is my present purpose to show TO the entire
satisfaction Of intelligent readers the actual
loss Of greenbacks or United States notes in
thirty-three years and also the total loss Of
paper money of all kinds during the same
period of time, and hence the sum which
must be deducted from the amount reported
as being in circulation. Most patient research
has been made aud a vast array OF details ex-
amined and thoroughly analyzed in order 10
ascertain aud fix the law of annual loss of
paper money, which we have found TO be .277
of per cent, and l have made still more
conservative rate of $50 of ! per cent equal
to per cent in four years; ano on tnis ex-
tremely low percen entage of loss the calculations
which follow are based:
Comptroller of the Currency John Jay Knox
in mis- report for 1888, page 2S, states that
tender notes or green backs outs standing at any
one time was $449, ,479 222 on February g.
1854 He adds that these notes were issued
on April =, 1862, and the issue ceased April
10, 1863" On page 8, Comptroller's report
for 1874. we find the terms OF the act of Con-
gress, June 20, 1874. fixing the authorize
issue OF legal tenders at S3S2, ,000, 900, below
which sum II was not to De ieduced. On jan
usry IA, 1873, only seven months later the
act TO retire The greenbacks was passed, an d
by May 81. 1873, $50 3lS 9S4 had been re-
tired ana Cancelled, inc. uding n million rs iost
and destroyed between the years 1862 and
1873. when by act of May 81 the retirement
VI CehStu, ana kne amount Out-
standing or in existence was fixed at S346-
S6l,Ol6, the exact sum reported month Tor
nineteen years past, not one dollar OF IL being
reported as missing or lost.
Between February 3, 1864. and January 90
1874, ten years, the amount OF greenbscks out
standing varied from $449, ,479 222 TO $685.
100000, difference Ot $67, 479, ,222; hut as
The average amount in use was over 100000 =
600, we may with due accuracy take that sum
as lair average for four years more, that is,
from 1864 10 1878, period of fourteen years
during which tim q have n. the yearlv
loss was one-quarter OF l per cent, amoun ting
in four years to per cent and in fourteen
years 10 81 per cent Three and half per
cent OF $4,000 900 amounts 10 $14 900 900
OF lost money. To this must be added the
$50, ,3lS, 1884 eired and destroyed, making a
total Of $493lS 9S4 which must be deducted
from the 1892. .0OO, 900 reporled 10 be outstand-
ing or in existence May 81. 1879, and we have
lett but $500 6Sl ,0l6 as The true amount still
IN existence in 1873, insts ad of the S:346 6SI,-
Oi6 reported by the treasury officials. Our
next step is 10 find the loss on these remain
ing greenbacks from 1878 TO 1897, period of
nine teen years. The rate of loss continues at
per cent in four years, making 43< per cent
in nineteen years. This loss in nineteen years
amounts to $15, ,S02, $40 and il must be de-
Quoted from the 1882 6S1 ,016 in actual ex-
lstence in 1878, and we now have left only
1916 S7S, ,668 the true amount of green
backs in existence at the present time and not
the $346, 6S1 ,O16 still reported a. outstanding
after nineteen years OF exposure 10 destruc-
tion and loss in every posi- BILE way, without
the loss of single dollar. We must now add
t4Lo FAt OOO.OVO AOSb plAOI " 1910 10 LuS
S15,S 34S oSt since that date aud we have
u total Uf $29. S02. .34S in greenbacks lost in
the past thlrty-three years
In all fairness we shou d add 10 this sum OF
lost greenbacks the loss of the two years
previous TO 1864, while 5000, 900 900 were in
use, the loss ln twO years being half of 1 per
cent aud amounting 10 1900 600, and we
have now S3l 1902 34S lair statement of
the true loss OF green backs up to the present
time, and hence we can have but S3l5, ,37S,-
66S in greenb4cks in actual existence.
On page D4D Dt the COnDtTOllpr'S rGnOrt fOr
1896 we have the figures from 1862 TO 1896 of
the amount OF paper money in The United
States, including ali forms now in use. Be
ginning with $3.50, 5Ss, ,O67 in 1854 the amount
gradually increases 10 81, 120. .0l2, $50 in 1897,
the average amount mr. annuIn for the thirty
three years icing $3.50, 142 TIA Computing
the yearly loss at quarter of ] per cent.
which is S14 per cent in thirty-three years we
have as the total loss OF paper money of a II
kinds the sum of 72,611, ia all OF which is
sttl reported as outstanding and in ereula-
tion. Need add q word OF cOmment2
JOSEPH AsBURY JOHNSON.
San Francisco, June %, 1897.