The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-07-31

oiCCl GU quantity. For oX-
ample, the estimate for June 80, 1906,
was as follows:
Cnl.ed states treasury. .$8o4,340,135
NATIONAL banks 118,513,2S1
National banks by. Clear
ing house certificates. 69,197,OOO
Other banks and in circu-
iatlon .--.. 49,. 4SO,944,793
Total -. -. $1.472,995,2 09
The report of the comptroller of the
currency for 1906 shows that state
and other banks not in the national
system reported to him as holding on
that date a total of $54,397,279, in
Guiding clearing house certificates
These banks also held $S1.571, 6S1 in
unclassified cash" and $7.027,6e9 in
specie" Allowing the usual percent
age of this to be gold and making
some further allowance for private
banks not responding to the comp
troller's unofficial inquiry, 100000
900 is considered a fair estimate for
the gold coin in banking institutions
other than national
In California.
The laws of the state of California
require the monies of the tate coun-
IT, and municipal governments to be
kept in the Immediate custody of the
treasurers, and this is held to mean
tfat the cash must be in the vaults of
their Offices instead of on deposit in
banks. The aggregate amount of gold
coin so held in the state of California
on the first Monday in July, 1906 was
$2O.151, 400. These are the only large
holdings of gold of which there is
definite knowledge.
The total. therefore, of gold which
may be said to have been in sight in
this country on June 80, 1906, was ST.
112,2O1,S25, leaving $360,793,384 to
be considered lin other banks and in
circulation.&k For this last item it is
evident there can be no exact figures.
The sum total is arrived at by the
method described below, and after the
analysis above given is made the re-
mainder is assigned to the unknown
holdings.
The treasury estimate dates from
June 80. 1878. when DIR. Henry r.
Linderman director of the mint. esti-
mated the tota! stock of the country
at $135, 100000. The conditions then
were favorable to close estimate. The
country was. on a paper basis, and the
stock of gold comparatively small
DR.. Linderman in framing his estimate,
said that he had taken the amounts in
the treasury and national banks and
added an allowance of $20,000,000 for
the amount in circulation on the Pacific
coast and $40, 100000 for the holdings
of the public in other parts of the
country.
Since 1873 the coinage of the minis
and the imports of United States coin
have been regularly added and the ex-
ports of United States coin and an al
lowance for the amount consumed in
dustriaIly have been regularly de-
Quoted. BY this method the estimate
had been built up from year to year
to the totals used.
Sources of Error.
The possible sources of error. as
these estimates are carried along, are
three, to-wit:
First-Errors in custom house re-
turns of coin imports and exports.
Second-Errors in estimating the in
dustrial consumption.
Third-The unrecorded movement
of coin in and out of the country in the
immediate possession of travellers.
1t is evident that if errors under
these heads should be cumulative they
would become important in a long term
of years, even though inconsiderab BILE
in any single year. Whatever errors
occurred would affect the amount as
signed to "other banks and in circula-
tion," the sums in the treasury and
national banks being definite and Off
cial.
Among the most intelligent and well
informed of the critics has been Mr..
Maurice L. Muhleman. for many years
an official of the treasury department.
He has several times reviewed the
estimates and given cogent reasons for
believing them too high. The director
of the mint has been satisfied for sew
eral years that errors had creDt into
the estimates, but has preferred not to
announce a revision until all sources
of Information had been exhausted.
He is now ready to make the changes
submitted below.
=. Error In Original Estimate.
The first error to be noted IS one
discovered by Mr.. Muhleman in DR..
I,inderman's original estimate of the
stock in the country June 80. 1873.
The stock of gold actually in the treas
ury on that date. after various coin
items" are eliminated. was only SILL
1SS54S; the stock of specie in ma
tional banks at the nearest statement
thereto was $4,S18.0S6. The latter in
cluded some silver coin. The nearest
date for which the stock of silver coin
in banks is obtainable is June 80, 1875,
when it was S1,472,507. 1t seems
probable that there was silver coin
10 the amount of $1,000,000 in the
hanks on June 80. 1873. which would
make their gold holdings S3,818.086.
Adding the $3O,000.00O estimated by
Dr. Iinderman as the amount in the
hands of other banks and the public,
the total in the country on that date
would be $105, 006,634, instead of
S135OOoOOO. This difference is I'M
doubted1y due to DR.. Linderman's hav-.
ing included certain "coin items" such
as bonds, in his figures for gold in the
treasury.
Errors I'm Imports and Exports.
There being no duty upon gold bull
lion or coin it naturally follows that
customs officials are not as particular
to verify the accuracy of declarations