AMERICAN FINANCE 395 



The critic has a right to say that his objection rests not 

 only against the seventy or eighty million dollars in circula- 

 tion as such but also against the 460 or 470 millions covered 

 by certificates. The demand for dollars and certificates 

 makes sturdy answer. In the late autumn, the treasury finds 

 the drain on these kinds of currency exhaustive. Its ten 

 offices in September, 1900, held only $55,006 silver dollars, 

 and $3,646, 159 in silver certificates. Since then the minimum 

 holdings have not fallen so low. Dollars were $1,405,631 in 

 December, 1902, and $898,275 in September, 1903, while silver 

 certificates in the autumn months of 1903 and 1904 were 

 $4,271,562 and $6,192,783. These conditions are created 

 by the movements of the crops, which call for dollars and 

 small bills. The treasury prepares by husbanding such 

 resources, and on August 22, 1904, before the autumn ship- 

 ments began, had in its several vaults in United States notes, 

 nearly all in $10 bills, $15,716,020; in silver dollars, $22,641,- 

 903; and in silver certificates, all in $1, $2, and $5 bills, 

 $7,100,458. This was a total of over $45,000,000, available 

 for putting on the market corn and wheat and other grains, 

 provisions, cotton, and sugar. Great as this sum is, it illus- 

 trates the measure of elasticity possible with forethought 

 and vigilance under our system. To that extent the weakness 

 of rigidity is mitigated. 



Bank notes on July 1, 1900, issued by 3,732 banks were 

 $300,115,112 and 14.6 per cent of the total circulation, and 

 became at the outset of this fiscal year $433,595,888, issued 

 by 5,386 banks, and 17.2 per cent of each circulation. 

 They have thus increased faster than the currency as a 

 whole. Students of finance regard them with very differ- 

 ent views. To very many our banking system seems the best 

 in the world. By others bond security for circulation is 

 denounced as unduly expensive, viciously rigid and unre- 

 sponsive in trade necessities. The fink of the monthly reduc- 

 tion to $3,000,000 is especially offensive to them. Not all 

 such critics, but many, seek a substitute in currency based 

 on general assets. Some thoughtful financiers look with 

 alarm on the rapid and continuous increase in bank notes, 

 and object to any device for adding to them. The suggestion 



