Year: 1879

A long time ago il was said, YOu can't put
"a quart of water into a pint cup" Mr.
RucLner. Of Missouri, and many of his asso-
eiates. seem to be unfamiliar with this h0mely
rule. 1t is their firm belief that any Indef-
mite quantity of silver dollars, and any indef
mite amount of one and two-dollar notes, can
be circulated mt the same time. They stub
bornly oppose any reduction in the amount of
small notes circulated, and yet they demand
that silver dollars without limit should be
coined and forced into circulation. Because
the Secretary Of the Treasury has failed after
much faithful effort, to get the silver dollars
into use, these gentlemen are inclined to think
that he is secretly conspiring against them.
II is strange thats sensible men cannot dis
cover the difficulty. The possible circulation
of small notes and coin is pint cup, and the
attempt to force into it quart of any sort of
currency will inevitably fail.


Many of the ablest reasOners in respect to
monetary problems lose sight of the fact that
the circulation of currency of small denOmi-
nations is necessarily limited. They have no
such difficulty in dealing with the question of
fractional circulation. liz occurs TO them at
once that the country does not need, cannot
use and will not keep in circulation more than
a limited quantity of halves. quarters or dimes,
whether of paper or coin, and they see that
paper fractional pieces must be withdrawn in
order to make room for silver fractional
pieces. Ii is strange that they do not see the
application of the same principle to the circu-
lation of dollar coins and small notes. The
channel to be filed is of about the same SIZE
Experience, both with notes and coin, has de-
monstrated that the amount OF coined dollars
and of one and two dollar notes which can be
kept in use is not much greater than the
amount of notes or coins of less than one dol
lar each. . 1t is idle to pretend that this
state of things can be or ought to be changed.
The small notes OF coins have a certain use
in the retail dealings of the people, in the
making of change in larger transactions, and
in the demands for pocket money. The
amount needed for such purposes does not
greatly vary whether business is active or
inactive, whether the country is PROSTATE or
prosperous in its industry and trade. There is
the best reason for believing that the country
has never been able to employ OF small notes
aud of coins smaller than 50 each an amount
greater by oDe-half than the amount which
was found excessive in the time of extreme
stagnation in 1878.


1t is safe to say that about $4,000, 900, or
not far from 81 per eapifa, will cover all the
fractional coin and notes that can be Kept in
circulation without Inconvenience, and viii
also cover all the notes or coins OF 81 or 80
each that can be conveniently used. When
VIC had in use larger amount of the frac-
tional notes and coins, great complaint arose (;
the Government was compelled to provide for
their redemption and fractional silver to the
amount OF $15.0O0.O00 has been emptied into
the Treasury by redemption because nobody
could use 1t. In like manner we had in circu-
lation about $50 ZOO, 900 of small notes, silver
dollars and trade dollars within the past year,
and loud outery was raised at once for some
means of retiring the least acceptable-the