UNITED STATES, FINANCES OF THE. 



785 



Treasury to offset outstanding gold, silver, and 

 currency certificates : 



Currency Circulation. The tendency of na- 

 tional financial operations for some time past 

 has been to bring the legal-tender notes to a 

 metallic basis, despite the fact that Congress 

 has not apparently nad that end in view, and 

 to prepare the way for their cancellation, al- 

 though their retirement has not yet been au- 

 thorized. When the anxiety and apprehension 

 with which these notes have at times been re- 

 garded are recalled and the doubts as to the 

 ability of the Government to maintain their 

 credit are remembered, it seems wonderful 

 that, with little aid from statesmanship and 

 financiering, the great problem has solved it- 

 self, and this legal-tender currency has been 



brought to such a basis as no longer to present 

 a practical question or difficulty as to the means 

 of redemption on the one hand, nor to threaten 

 any financial disturbance as a const-quo.' 

 the eventual retirement and cancellation of 

 these notes on the other. 



Such are the daily operations of the coinage 

 and currency laws that the Treasury could 

 now, without the slightest difficulty, redeem 

 and cancel the greenbacks as rapidly as they 

 would be voluntarily surrendered. At the 

 same time the increase in metallic money has 

 been so rapid and so great, and the expansion 

 of circulation of other forms of paper money 

 has been so large that the greenbacks are no 

 longer essential for the purposes of a convenient 

 currency, and could be withdrawn and can- 

 celed in accordance with a conservative plan 

 of gradual retirement without causing any 

 popular inconvenience or injuriously affecting 

 the circulating medium. A statement is given 

 below of the actual paper-money circulation of 

 the United States on Dec. 31, 1887 and Dec. 

 31, 1888, showing the year's changes in the 

 four forms of note circulation. 



The National Banks. Although a contraction 

 of $27,700,000 has occurred during the past 

 fiscal year in the national bank-note circu- 

 lation, only $11,800,000 of this amount has 

 been due to the withdrawal during that period 

 of bonds deposited with the Treasury as secu- 

 rity. The larger amount, or $15,900,000, came 

 from the fund for the redemption of notes of 

 banks that had before the beginning of the 

 year surrendered this part of their circulation. 

 In other words, the contraction of note-circula- 



COMPARATIVE STATEMENT, BY DENOMINATIONS. OF UNITED STATES CURRENCY AND BANK- 

 NOTE CIRCULATION. 



VOL. xxviii. 50 A 



