The Birmingham age-herald., 1924-03-27

each month! Does Al the government try I to figure out how ..ss..ssssssss.= much gold and sil- k-c Hosees yer and paper money mas oeen stroyed since money began to circulate in this country?
 A reader of this column sends m these and similar questions ana wants me to answer them. He says, TOT amnie. "Eyery day money is destroyed Sbins are lost at sea, some of them with millions of dollars in currency anoaru' Fires. especially in foreign sections, cons,ime thousands of dollars, because these people often hide their savings m their. houses. In the case or paper money, the owner, of course, IS tne loser. but how about the gold or silver in the limited states treasury against which the paper has been issued! VIII it lie there forever, since nobody can claim 1t? Or are occurrences Ike tnese provided for? If not, then there must be an enormous amount or Goio anu silver which the government hoids, put does not really own, and Whfcn noDooy can ever claim. Is the government 'af- fected in any way through the destruc- tion or loss of different kinds of money?"
 Interesting questions, are they not! They cannot be answered fully in the space of one column. It will take two: The information here given can be ac- cepted as thoroughly authoritative, as I have gone to the fountain head for it.
 First, it may be said, in. a general way, that the treasury department Tn figuring out the amount of money of various kinds in circulation does not make deductions for money lost or de- stroyed while in the hands of the pub lie. The estimate for each month is based on the figures of the previous month and modified by Sthe transac> tions which have taken place during the month.
 The last annual report of the Secre- tary of the Treasury had a tabulation. "Stock of money in the United States classified by kind at the end of each fiscal year from 1860 to 1sSS." This ta- ble contains the best data available. In fact, the treasury department recently made a new study of the problem and this compilation was published in it's present form for the first time in the report for 1922.
 The work has not been gone at blind ly. The treasury department has from time to time made revisious to correct wrong estimates, to make certain de- auctions for money lost or destroyed anu remove kEOm LnS rScOEuS ASSuSS NO longer in circulation.
 The basis for the estimates of gold coin and bullion in the country before 1873 is not stated. In that year the director of the mint, HI. R. Linderman, said. in his annual report:
 "The coin except as to the Pacific coast states and territories, being as a general thing in the treasury and banks, the present time is a favorable one for estimating the amount of gold and silver coin in the country. From the most reliable data obtainable. the gold coin is estimated at $1S5, ,OO0. 900 and subsidiary silver $5.0O0, 900. Total, $140, ,00O, ,000."
 From 1873 to 1907 estimates of gold and silver were built up on this basis by adding coinage of the hints and inn ports and subtracttng exports and es- timated industrial consumption
 George E. Roberts, now vice presi- dent of the National City bank of New York, was director of the mint in 1907, and as a result of an extensive inves- tigation he decided that LindermaD's 1878 estimate was excessive and con- tained errors in his figuring for later years. MT. Roberts prepared revised of gold on June 30, 1673.. For a mum Der of years both the old and the re- vised tabulations were published in the Ftreasury's annual reports. In 1921, however, the 1907 revision was dropped.
 How does the government know just how much gold is consumed by jewel CTS and others?
 The figure is arrived at by adding to the sales reported by the mint off cers and by private refiners certain allowance for coin privately melted. These estimates are occasionally check ed up by gathering information from manufacturing jewellers.
 This compilation, however, does not include any estimate of gold lost at sea or by any other accidental means. In fact, no allowance for such loss has aver been made.
 Estimates of the stock of silver in the United States have been arrived at by similar process of calculation. made for coins lost or destroyed while in the hands of the public.
 :. The amount of gold and silver cer- tificates outstanding has been arrived at by the simple process of deducting from amounts Issued, the amounts sub seQuently sent to the government for redemption. Since these certificates are secured dollar for dollar in gold or silver held in the treasury, it is clear that the amount of metal held as re- serve must De greater than the certtfi- cates actually in existence today be. cause you and I know well enough that certificates are constantly being lost or destroyed through fire or other .mishap.
 How the government allowed for money destroyed in the great Chicago fire and what 1t has done in one or two other instances will be told in au- other eolumn.-(Copyright, 1924, by B. c. Forbes)