394 ELLIS H. ROBERTS 



and $5, as a substitute for United States notes for redemp- 

 tion, and in each succeeding year apply a like sum for 

 the inflow to continue such change. The redemptions of 

 United States notes last year were $122,680,000 and the 

 average for five years $101,231,200. It would be easy to 

 transform half of this sum into gold certificates. By this 

 process the United States notes would grow less weak, and 

 before very long become in fact gold certificates, as they are 

 now in essence, in the ratio which the reserve holds to them, 

 or 43.2 per cent. 



The silver dollars have of late been severely assailed in 

 and out of congress. They are denounced as excessive in 

 volume and as a menace to the integrity of the currency. 

 Demand has been loud for their redemption in gold, and for 

 the reduction of their number by coinage into fractions. 

 Predictions have been put forth that some official may, at 

 his option, pay them for interest or some other high obliga- 

 tions. Assault on a fortress does not prove that it is vulnera- 

 ble, but it does challenge vigilance and defence. While 

 additions to the silver dollars were constant, their force for 

 evil or for good grows apace. The repeal of the act for the 

 purchase of silver set a barrier to the current and checked it. 

 The recent stoppage of the coinage of dollars fixes a limit to 

 their volume, and permits a calm survey of their use and their 

 abuse. Silver dollars in circulation and not covered by certifi- 

 cates on July 1, 1900, were $65,889,346, and 3.2 per cent of 

 the total currency. The volume increased for three years, 

 but the ratio fell to 3 per cent of the total circulation. In 

 the fiscal year 1904, including the coinage for treasury notes, 

 the volume became $71,561,684, or 2.8 per cent of the total 

 circulation. The silver dollars in the treasury reach the 

 maximum from October to December annually, and the 

 minimum in July or June. In 1900 the difference between 

 summer and early winter was $8,203,467; in 1901 it was 

 $10,422,985; in 1902 it was $6,651,358; in 1903 it was $9,794,- 

 447; and in 1904 it was $10,011,539. This is a margin of 

 practical elasticity in these metallic dollars, and marks the 

 currents of their use in the varying seasons. This elasticity 

 is in so far an offset to the weakness of such coinage. 



