lijti’oi’iMation loi' tUo l’cojjie. ' i I*rtS«S, %*Jj o1 OUR CURRENCY: fff ITS VOLUME AND CHARACTER. The question of Currency is not necessa¬ rily a complicated one; nor should it be dif¬ ficult to comprehend and apply, in its bear¬ ings upon the business and industrial inter¬ ests of society. Yet the public mind is di¬ vided upon the subject, and it is made a prominent issue in some of the most impor¬ tant election campaigns. In view of these facts, it is the purpose of the writer to present a few brief statistics and statements which will enable every in¬ telligent reader to arrive at a correct conclu¬ sion on the subject. THE VOLUME OF CURRENCY. 1. Is the Currency of the country adequate in amount to the legitimate business demand1 A hurricane or tornado among the elements of nature can never occur without adequate cause. So in financial circles a money strin¬ gency of a panic is precipitated, and controlled by causes as unerring in their results as the laws that govern a sun-set, or an eclipse. The country has suffered during the last twenty-four months, and is still suffering, though less severely, from the effects of a fi¬ nancial crisis, which has been attributed by a certain class of thinkers, or rather of thought¬ less individuals—to an insufficiency of cur¬ rency. Can this position be logically sus- t: lined ? Let us look at the facts ; and to do so, it will be necessary to go a little into his¬ torical figures. Before the war there was little or no complaint of a scarcity of curren¬ cy ; yet the amount of money, paper and specie, in circulation in 1S74 was double what it was in 1859. Here is the aggre¬ gate circulation for each period indicated: 1874. Circulation,.. $934,538,000 1859. Circulation, ... 468,30(5,000 Increase,. .h...$463,232,000 Instead of contraction, here is an actual in¬ crease of currency amounting to within a fraction of one hundred per cent, in fifteen years. There has, of course, been an increase of population during the same period, but the ratio of increase in population is less than half that of the increase in circulation. The amount of money per capita in use, at diff¬ erent periods, is seen in the following state¬ ment : Year Specie. 1 Paper. 1S34 1859 1874 Total. .$■241,000,000 $204.669,000 .$4 4 5,689,00C 2(5.433 000 16 80 275,000.000 193.305.000 468,300,00.> Popula¬ tion. Pel- Cap¬ ita. 30.596,000 167.000.000 777.533.000 944 538 00043.000, 000 15.30 21.96 Here it is shown that while the circula¬ tion, per capita, was 16.80 in 1854, and only 15.30 in 1859, it went up to 21.96 in 1874, from which there is little or no varia¬ tion to-day—demonstrating the fact of a larger circulation now, by about 25 per cent., than at the previous date indicated, or in fact at any former period in our history. : The following tables will enforce the truth ! of these statements : Circulation of Paper Currency , 1854 to 1875. Year. 1851 .. 1S55 .. 1856 .. 1557 .. 1558 .. 1559 .. 1860 .. 1861 .. 1862.. 1863 .. 1864 .. 1S65 .. 1866 .. 1867 .. 1S3S .. 1869 .. 1870 .. 1871 .. 1872 .. 1873 .. 1874 .. 1875 .. Bank Notes. 204,689,000 156,952,000 195,747,090 214,778,000 155,20S,000 193,306,000 207,102.009 202, 205. 000 183,794,000 25,000, 000 45, 000, 030 171,000,000 280,000, 000 293,009,009 295,000,000 293,000, 000 291,600. 090 315,000,000 333,09:0,000 340,000,000 349.000,000 351,869,008 Legal Ten¬ ders . Fractional Total 149 000,000 254,970, 009 434,173,000 432,6S7,000 400, 961,000 371,783,000 356,000,000 356,000,000 356,000,000 356,000,000 357 ,'500,000 356,000,000 382,009, 000 375, 841, (‘>87 204.6S9,009 186,952, 000 195.747,000 214'778,000 155,208, OoO 193,306,000 207,102,000 202, 205,000 332,794,000 17,766,000 297.736,000 22,894.0 JO, 502 I >72,090 ‘25,005, OOO, 628,692.000 27,508,090.676,50S. 000 36, 878.009 6S3,878, OoO 40, 582,000;711,582. 000 49,855.000 731,355,000 44, 799,000'740. 799,000 46,53S, 0001777, 538, 000 42,129,424J69.849,119 The above statement of the circulation of paper currency may he accepted as reliable, as the figures have been revised and corrected from official records. It is more difficult, however, to give the exact amount of specie in circulation at any specified period. This is owing mainly to the fact that a portion of the silver and gold coin is aimully melted and used in the trades, and for other pur¬ poses. The following figures are, however, accepted at the Philadelphia mint, and in official estimates, as being nearly correct: Estimates of A mount of Coin in the United States at Different Periods. Year Specie in Cir¬ culation. Specie in Banks 184S $ 66,000, U0f» $46,000,000 184!) ' 77,000. (Wo 43.0(0,000 1850 109.GOO.OOO 45.000,000 185.1 13S,000,000 4S.000.000 1852 160,000,000 44,000,000 1853 180,000, 000 56,000,000 18.34 j 181, OoO, 00 {i 60,000,0v'0 1859 - - - - - 1 ?73 Total in coun- _tr y. _ $112,000,000 12 ’, 000 , 000 . 154,00(',000 186,000.000 204. Wo, tOO 236,000,000 241.0(0.000 275.000,000 170.000,000 lG7.00ii.0C0 From 1854 to 1801 the exports of specie ex¬ ceeded the imports nearly $100,000,000. This heavy drain on our specie ceased in October, 1801, and soon thereafter the flow to the- United States commenced, adding about $90,000,000 to the stock of coin. MONETARY CIRCULATION IN FOREIGN COUNTRIES. A comparative statement of the currency circulation of the United States, with that of three of the leading European Powers, shows that two out of the three have less money in circulation, per capita, than we have. Here . are the figures, based on a carefully pre¬ pared paper on the subject, published in January, 1S74, in the Monthly Report of the U. S. Bureau of Statistics, pages 134 to 137 : o Circulation in France , 1874. Irenes. Metallic currency (coin and bullion) 4,000,000,000 Notes of the Bank of France, in circu¬ lation, Dec.26, 1873,._2,807,689,025 Total. 6,867,689,625 Deduct metallic reserve in Bank, Dec.' 26, 1873... .. 759,962,419 Total currency in circulation, 6,647,727,206 Equal in U. S. gold to $1,209,545,441. Population, 37,185,700. Circulation, per capita, $32.52. Circulation in North Germany , 1873. Thalers, Coin in hands of the people. 532,435,362 Mol Os in bands of the people. 253,159,142 Gold controlled by the Government. 105,000,000 Total Thalers.896,594,504 Equal in U. S. gold coin to $632,000,000. Population, 31,600,000. Circulation per capita, $24.00. The currency circulation and population are for the twenty-two States comprising the North German Confederation. Correct returns of the currency of Germany, since the Franco-Prussian war, are not yet pub¬ lished. Circulation in Great Britain and Ireland , 1873. Gold coin.£84,551,000 Silver coin... 15 000,000 Bronzecoin.. 1,148,000 Excess of bank notes over coin reserves,. 40.540,000 £141,239 000 Equal in U. S. gold coin, to $686,421,540. Population, 32,001,004. Circulation per capita, $21.45. Here it is shown that Germany, with all her accumulations of treasure, has a circula¬ tion, per capita, of only $20 ; and here, too, we have the fact demonstrated that the wealthy manufacturing and commercial Uni¬ ted Kingdom of Great Britain and Ireland is doing business, without inconvenience, too, with a monetary circulation of less amount, per capita, than that of the United States. If additional evidence is required that the currency in circulation in the United States is fully equal to the necessities of legitimate business, and more than equal to the actual demand, it is shown in the fact that any amount ■of money can be obtained in New York city and other commercial and money centres at five per cent, per annum, on satis¬ factory securities. It is further demonstrated that there is more currency in circulation than there is any demand for, by the fact that uuder the Act of June 20, 1874, providing for the re¬ demption of National Bank circulation, and the Act of January 14, 1875, providing for new banks and Free Banking, the amount of circulation retired for redemption is several millions in excess of the new issues called for. The money retired comes mainly, too, from Western banks. The Controller of the Currency, U. S. Treasury, July 6, 1875, makes the following report: “The whole amount of legal-tender notes deposited with the Treasurer, for the purpose of retiring National Bank circulation, since the passage of the Act, (of June 20, 1874,) is $25,523,057 ; deposits by banks in liquidation previous t.o j that time, were $3,813,675; making a total of $29,336,732. Deducting the circulation redeemed with legal-tender notes and de- j stroyed, amounting to $9,627,006, there re- : mained on deposit with the Treasurer, (July 1st,) in legal-tender notes, for the purpose oj retiring circulation , $19,709,666.” The amount since that date has been increased. From the facts here presented, it is mani¬ festly evident that the volume of currency now in circulation in the United States, is amply sufficient for all legitimate purposes, and that the recent financial panic was not the result, even remotely, of a too contracted currency. THE QUALITY OF THE CURKEXCT. II. Is the Currency of the country adequate , in character , to the wants of legitimate business ? That portion of it—and it embraces nearly the whole—that is known as a depreciated paper currency, is defective, because of its instability. It lias no acknowledged standard of value, on which investments can safely be made, contracts entered into, or business transacted. There are scarcely three suc¬ cessive days in the year in which the value of our paper currency is the same. It is therefore, unsafe as a basis for business trans¬ actions. Bring it to a gold basis, and it wlil at once assert and maintain a standard value, and may then be used as the basis of all le¬ gitimate transactions, however extensive, and become a desirable circulating medium, not only in the United States, but also throughout the Dominion of Canada, Mexico, and generally over the continent. A fluctuating currency deprives farmers, artizans, mechanics, laborers and honest tradesmen of millions of dollars of their earnings, annually, because it compels them to accept a green-back for a dollar, wlieu in reality it is worth only about eighty-eight cents to-day, and eighty-seven, or eighty- nine, possibly, to-morrow. It puts millions of dollars into tlie pockets of sharpers, be¬ cause it increases the opportunities for finan¬ cial gambling ; and every change in its value is made to work to their advantage. It weak¬ ens confidence in the results of business trans¬ actions, discourages legitimate enterprise and retards substantial progress and prosperity. In view of these facts, Congress has au¬ thorized the Secretary of the Treasury to prepare for specie resumption, and there need be no difficulty in resuming within the time indicated, (January 1, 1879,) unless it comes from the persistant efforts of the Democratic party to defeat the measure, if possible, by demanding more irredeemable paper money— one of tlie most fatal financial blunders that could possibly be conceived. I 1 he policy and aim of the Secretary of the Treasury is to re¬ sume specie payments , and with confidence and co-operation on the part of the people he can do so. Over $43,000,000 of specie were coined during the last fiscal year—more than four times the amount of the coinage of Eng¬ land—and it is claimed by the Director of the Mints^that the turn-out for next year will be more than doubled. TAXES: WHO PAYS THEM? ,l We are more heavily taxed by our idleness, pride and folly, than we are taxed by Government.” — Franklin. WHAT IS A TAX, AND WHY IS IT NEEDED ? A tax is an assessment for a specific amount made upon property for a specific purpose, under Federal or State authority ; or, it may be a tax on incomes or annual earnings, or a personal or poll-tax on each adult citizen. Each State adopts its own mode of taxa¬ tion, and the State tax is always distinct from the Federal tax. The State may raise its necessary revenue from a tax on real estate alone, but the usual mode is to make up the requisite amount by an assessment on personal property as well as on real estate. The Federal Government pursues a differ¬ ent policy. The main source of its revenues is the tariff on imported goods. But in ex¬ traordinary cases, of which the late rebellion affords an example, personal property and incomes are taxed to meet a specific emer¬ gency. But Internal revenue taxes are always dropped with the removal of the cause for,their collection. A revenue is required by the Federal Gov¬ ernment to meet the demands on the United States Treasury for the annual interest on the public debt, the expenses of the army and navy, the payment of pensions, Indian, and other ordinary expenditures, the whole amounting to about $275,000,000 per annum. State, country, and municipal taxes, over which the Federal Government exercises no control, provide revenues from which the ordinary expenditures for legislation, schools, roads, State public improvement, and other State, county or municipal expenses are paid. In recent years many of the States have allowed their ordinary public expendi¬ tures to increase much more rapidly than the increase of population and wealth. This has resulted in a corresponding increase of taxation, a condition of affairs that should always be avoided. It can now be overcome only by rigid economy in the public expen¬ ditures aad submission to a pretty severe tax until the State, county and municipal indebtedness is liquidated. With these remarks on the general subject if taxes and revenues, the attention of the rea er will now be directed more particu¬ larly to the present PO jICY and scope of federal taxation. The policy of the administration is to de¬ rive the largest portion of the necessary revenues from the tariff on imported goods. The estimates for the fiscal year which com- enced June 30, 1875, were made on the following basis: From customs. $170,000,000 From internal revenue. 106,000,000 From other sources. 17,'000,000 Total estimates. $293,000,000 It is believed now, by experienced officials, judging from the improving condition of the country and the weekly increase of receipts since the estimates were made, that the inter¬ nal revenue receipts for the current year will reach $120,000,000 or over. Of this, nearly $100,000,000 will be derived from spirits, beer, and tobacco in their various forms. The balance comes from the tax on patent medicines, perfumery, matches and banking capital. These are the only articles subject to a Federal tax. And as showing what the Republican party has accomplished in the way of decreasing the taxes caused by the Democratic rebellion, it may be stated that while the Internal revenue receipts, for the fiscal year just closed, amounted to$110, 507,493.53, and those for the current yea,r will be about $120,000,000, the internal reve¬ nues for 1866 amounted to three hundred and nine million , two hundred and twenty-six thousand , eight hundred and. thirteen dollars and forty-two cents , exclusive of a direct income tax, col¬ lected during the same year, amounting to $1,947,754.12. Keeping in view the fact that only about half a dozen different articles are now sub¬ ject to a tax, it will be interesting to note briefly the sources whence the enormous tax of previous years was derived. From March, 1865, to July, 1866, during which period internal revenue taxation was at its greatest height, all manufactures of every description, with a few unimportant exceptions specially exempted, were subject to a tax. A tax Was also imposed on all slaughtered cattle, sheep and swine; on the gross receipts of adver¬ tisements, lotteries, theatres, operas, cir¬ cuses, &c.; of express, insurance and tele¬ graph companies; of canals, steamboats, ships, barges, stage coaches, railroads, &c.; on dealers’ sales, auction sales, and brokers’ sales of merchandise, stocks, bonds, foreign exchange, gold and silver bullion and coin; on billiard tables, carriages, piano-fortes, gold watches, yachts, gold and silver plate, articles of luxury kept for use; on bank capital, circulation and deposits ; on passports, lega¬ cies and successions ; on dividends and' ad¬ ditions to surplus of banks, railroad, canal, turnpike and insurance companies ; on sala¬ ries of United States officers and employes ; on the annual income of all persons, in ex¬ cess of $600 per annum ; on legal instru¬ ments, such as deeds, bonds, mortgages, &c. ; on proprietary medicines, perfumeries and cosmetics ; and on friction matches and playing cards. All persons engaged as auc¬ tioneers, brokers, dealers, peddlers, manu¬ facturers, lawyers, physicians, &c., were re¬ quired to pay a special tax for carrying on their business^ trade, or profession. In snort, nearly every available source was made to contribute to the necessities of the Government. ANNUAL RECEIPTS FROM INTERNAL REVENC K AND INCOME TAX£S. Income tax lias ceased rrr~ 1 ne altogether. nuetaxes have been reduced about 2-3ds be¬ low their maximum in 1866. The following tables show the net receipts for e ach year : Direel Tax. reven ue officers are adjusted, is as foil CW3 | YEAR. COST. YEAR. COST. I 1863. I 0 per cent. i 1869. 4 2-10 per cent. i 1864. 1 4 per cent. ■ 1870. 3 5-10 per cent. i1865. j *2 4-10 per cent. • 1871. 4 4-10 per cent. 11866. i 2 2-10 per cent, j 1872. 4 4-10 per cent. 1867. 2 4-10 per cent. 1873 4 2 10 per cent. 1S68. 4 4-10 per cent. 1 1874. 41-i0 per cent. Year. Internal Revenue- 1862 • 1863 . 1864 . 1865 . 1 i>66. $37,640,787.95 109.741,134.10 209,464,215.25 309.226,813.42 266.027,537.43 191,087,589.41 158,356,460.86 184,899.756.49 1867 . 1868 . 1869. 1870. 1871. 143.098,153.63 130^642.177.72 113,729.314.14 1872 . 1873. 1874. 102,644,746.98 110,507,493.53 1875. $1,795,331.73 1,485,103.61 '475,648.96 1,200,573.03 1,974,754.12 4.200,233.70 1,788,145.85 765,685.61 229,102. SS 580,355.37 * 315,254.51 Add to this, allowance or drawbacks, refund¬ ing taxes, cost of stamps, paper, and dies, and the expenses of the office at Washington — in all about 2 per cent, additional — and we have the total cost of collecting the internal reve' nue, showing an economy probably without a parallel. . WHO PAYS THE INTERNAL REVENUE TAX ? If a family uses fifty boxes of matches, of ordinary size, in a year, they pay fifty cents in taxes to support the Government. If they have occasion to use a few bottles of patent medicines ; or if the ladies are disposed to indulge in perfumery ; or if the head of the family is well to do and keeps a hank account, on which he occasionally draws a check, these incidents may occasion an annual expenditure of fifty cents to a dollar in taxes. But this in¬ cludes the entire list of articles taxed, except¬ ing spirits, beer and tobacco in their various forms. But the latter articles are not included among the necessaries of life ; they are lux¬ uries. Dealers in those articles not only add the amount of the tax to the cost of their goods, but they fix a profit on the tax itself, in the same proportion as they do on the original price for the article before the tax is added. 1 n other words, the tax pays the same rate of profit as the goods— and yet the. con- The largest receipts from internal rev- sumption increases. The deaici lai eiv com- enue were collected in I860 ; from personal ot liie t f x ; ou .® *! _ I ond Ihn c-letrn fa opfihaiQ Qrmotltft it Q I Dor the purpose of showing just where the internal revenues come from, the fol¬ lowing analysis of the tax for 1874 is given. There was collected from— Spirits.$49,444,689 85 Tobacco. 33.242 875.02 Fermented liquors. 9,504,G79.72 Banks and bankers. 3,887,100 07 Penalties, etc. 304,210.84 Adhesive stampsf. 0,136,844.04 Balances:}: .. 704,830.14 102,044,740.9s income the largest collection was in 1807. From these sources combined the largest annual collection, as will be seen, was made in 1800, and amounted to $311,174,507.74. Since July, 1866, taxes have been grad¬ ually reduced until the amount of taxes repealed now reaches an aggregate of two hundred million dollars per annum, a reduc¬ tion of 2-3ds of the entire tax of former years. The internal revenue taxes, as stated, have j persistant "efforts made ~bv Great Britaf been removed trorn all articles excepting secure a reduction of our tariff, and of spirits, beer, tobacco, patent medicines, per¬ fumery, matches, and banking capital ; and the revenues from these sources are collected mainly by stamps, which are paid for on delivery, thus materially reducing the cost of collecting the internal revenues. The percentage cost of assessing aud col¬ lecting the revenues—adhesive stamps ex- and the slave to artificial appetite pays it all. WHO PAYS THE CUSTOMS REVENUE TAX ? Free Traders attempt to deceieve the peo¬ ple by making them believe the tariff of du¬ ties imposed on imported goods is, in all cases, a tax on the consumers of those goods. It is not so. In nine cases out of ten the duties are wholly a tax upon the foreign pro¬ ducer; and lie so understands it. Hence the ta$i to Can¬ ada to obtain a free-trade reciprocity with the United States. It is the producer, nol the consumer, who pays the duties: Maine and Canada each send a cargo'of potatoes to Boston or New York. They each sell out at $1.00 per bushel. Maine receives the fni! amount of the sale, while Canada leaves fir- teen cents out of each dollar, as a duty ou cep Led—from lbOo to 1874, inclusive, as do- ! goods. It is the same with nine-tenth of all the foreign goods brought to United Slates markets. The duties are paid by the pro¬ ducers, for the privilege of using our markets. It is as direct a tax upon him as the charges for freight, insurance and commissions. The Customs revenues amount to about $175,000,- 000 a year, of which not less than $125,000,- 000 are paid by those, outside of the Union , who use our markets for their own advantage. dueed from the expenses allowed by tbe 5tli Auditor, bv whom the accounts of internal 'Balances due in iS71. collected in 1»72 and 1873, and covered iulo the U. S. Treasury in the latter year. t Includes stamps on banli checks, &c., per¬ fumery, cosmetics, patent medicines, matches, Ac., kno eri as proprietory stamps. $ Balances from articles and occupations formerly taxed, but covr exempt.