Year: 1879




possesses decided opinions on the subject,
and has no hesitancy in avowing them. He
holds that the present volume of the curren-
cy is too small, and that Congress ought not
to adjourn before providing for its increase
to the extent Of five hundred millions of
dollars. He says that the whole amount of
money now in circulation in the United
States is hardly sufficient to pay the taxes
from one quarter to another if the whole
amount were required to be paid on the same
day. In this he is undoubtedly correct if he
excludes from the amount in circulation the
sums boarded in the treasury and held by
banks On the first of March the treasury
reported a balance on hand of $447, ,292, ,499.
This, of course is divided between legal
tenders and gold and silver coin in
almost equal proportions. When we add to
this say hundred millions held in the vaults
of the banks throughout the country, it will
be seen that there is really but small
amount of currency in actual circulation.
There are outstanding about $362,5OO,-
900 of legal tenders and fractional currency
and 1854, 900 900 in round numbers of ma
tional bank notes. The silver in actual cir
culation will amount to, perhaps, $3.50, 200, 900,
and the gold to as much more. This will
give total paper and coin currency of
$l ole, 100000. It we deduct, however, the
amount held in the treasury and in the
banks it will be seen that there is in actual cir
culation only about $47OO 100000 of all kinds
Of currency, while If the amounts boarded
by individuals was included, tho actual Cir
culation would be much less.


While We agree with Mr.. Stephens that
the present circulation of the currency is in
sufficient to meet the requirements of trade,
we should hesitate before recommending an
increase of its volume. If the currency
now authorized was actually in circula-
tion, there would be no complaint
of stringency. The better plan would be to
release the currency that is now held in the
treasury. It is of no benefit there. Save a
small balance for the redemption of legal
tender notes and certificates of deposit, the
immense balance to the credit of the treas
ury might be placed in circulation, and
ought to be utilized, so as to give relief to
the business public. With an authorized
paper circulation of seven hundred millions,
and a coin circulation of three hundred mil
lions more, it would seem that the country
was we'll provided with circulating medium.
But MIR. Sherman's policy is such as to pre-
vent this money from obtaining currency.
He seeks to contract the circulating medium
apparently from fear that there may be-,
some time, run upon the treasury, which
will exhaust his coin balance. This is a
silly delusion. Instead of keeping so large
a balance on hand, unproductlve,
it ought to be issued to the
country, and placed IN circulation
so as to relieve the present monetary strin-
gency. BY redeeming interest-bearing
bonds with the money now or hand not only
would the burdens of the government be
materially reduced, but the business COM
munity would have cause to rejoice in
having suficiency of currency to meet
their requirements.


NO increase OF the currency IS required by
present exigencies, but rather release of the
currency that is now authorized to be in cir
calation. Some means can no doubt be de-
vised by which this result can be reached-if
not at this session of Congress, at least at
the next. A thousand millions, even less,
is sufficient for all practical purposes. To
increase its volume would increase the
danger of a financial CONFUSION that would
inevitably take place when the whole volume
was released, as it must be some time. In
stead of endeavoring to expand the volume
of the currency, Congress ought to seek to
give the public the benefit of what is already
authorized. Such a plan would not only be
feasible but satisfactory.