Considering these liabilities as a whole it is clear that whatever percentage of reserve will protect the United States notes will protect the other liabilities. The Treasurer does not attempt to say what this percentage should be, but he is of the opinion that a uniform percentage should be fixed for all the current liabilities other than the three classes of certificates and that the excess of cash in the Treasury should be expended, from time to time, in the purchase or redemption of the public debt according to some definite and publicly announced plan. Should this be done, the policy of the Department would cease to be a subject of speculation and the influence of the Treasury on the money-market would be reduced to a minimum. The following statement shows that while the present nominal reserve of the Treasury held exclusively for the protection of United States notes has since January 1, 1879, ranged from 36.2 per cent. to 44.5 per cent., and has averaged for that period 41.1 per cent. of the outstanding United States notes, there has really been for the same period a reserve of cash against all demand liabilities, including United States notes and excluding the amount of outstanding coin and currency certificates from both sides, of from 40.5 per cent. to 55.7 per cent., which has averaged 51.6 per cent.; in other words, the reserve, as it has been maintained exclusively against United States notes, has been kept some $46,000,000 in excess of what it would have been, had the same percentage been applied in computing the reserve to be held against all demand liabilities excluding coin and currency certificates. At the present time the percentage of the surplus cash to the United States notes is only 40.1 per cent., while the percentage of the total cash to total liabilities (excluding certificates from both sides) is 54.1. Should 40 per cent. be fixed upon as a sufficient reserve for all the liabilities, the cash required to be held would be less than $181,000,000 instead of the $244,731,000 now held. Nearly $64,000,000 or, excluding $26,000,000 fractional silver coin not a full legal tender, $38,000,000 might gradually be applied to the extinguishment of the public debt. UNITED STATES NOTES. The following statement shows the changes which have taken place in the denominations of United States notes outstanding at the close of each of the last four fiscal years: During the last two years there has been a steady increase in the outstanding notes of the denominations of twenty dollars and under, and a proportionate decrease in the notes of higher denominations, the hundreds alone excepted. Of the five-thousand-dollar notes but ninety-one and of the ten-thousand-dollar notes but twenty-six remain in circulation. At the close of the fiscal year 1879 there were outstanding 48,497,283 notes; at the close of 1880, 55,573,301, and June 30, 1881, 59,839,069, an increase of nearly twenty-five per cent. in two years. During the last year there was an increase of $2,313,429 in one-dollar notes; $1,891,309 in two-dollar notes; $4,136,530 in five-dollar notes; $2,073,636 in ten-dollar notes; $128,390 in twenty-dollar notes, and $149,790 in onehundred-dollar notes. The amount of ones and twos outstanding has increased $8,587,250 within the last two years. This increase is in part due to the discontinuance of the issue of notes of those denominations by the national banks upon the resumption of specie payments, though the chief cause is doubtless the revival of business and the demand for small notes for the payment of operatives and for use in small transac tions. The issues and redemptions during the last three fiscal years have been as follows: Twenty dollars One hundred dollars. Five thousand dollars. $6,503, 133 3,010,000 $9, 223, 026 50 $9,057, 863 $6, 935, 511 80 700,000 19, 238, 000 00 $9,889, 034 $7, 575, 604 40 6,860, 690 60 10, 623, 470 00 7,086,364 00 6, 111, 610 00 2,306, 085 00 2,794, 510 00 5, 354, 000 00 5, 408, 000 00 225,000 00 200, 000 00 64, 107, 833 64, 107, 833 00 81, 302, 563 81, 302, 563 00 54, 545, 334 54, 545, 334 00 Although the amount redeemed in 1881 is $26,757,229 less than in 1880, the number of notes constituting the amount is 1,617,045 greater. By virtue of a provision in the legislative, executive, and judicial appropriation bill for the current fiscal year making an appropriation of $50,000 "for the preparation and issue of new United States notes in place of worn and mutilated United States notes, and transportation of each to and from the Treasury," the express charges on worn and mutilated United States notes received for redemption in multiples of $500 since July 1, 1881, and on new United States notes returned, have been paid by the government. This appropriation was highly necessary, as no provision for the renewal of United States notes, without charge, had existed since 1875, and the condition of the circulation had much deteriorated in conséquence. It has led to a considerable increase in redemptions, which will doubtless continue during the year. It is suggested that a similar appropriation for the next fiscal year be recommended by the Secretary. The amount of United States notes presented for payment in coin during each month since the resumption of specie payments is shown by the following table: Redemptions have for the present entirely ceased, no notes having been presented for payment in coin since March 1, 1881. The entire amount redeemed in coin since January 1, 1879, a period of two years and nine months, is only $12,029,086, an average of less than $365,000 a month. The total redemptions thus far are less than 33 per cent. of the United States notes outstanding, or a little more than one-tenth of one per cent. a month. The amount of United States notes received in payment of duties on imports during each month since January 1, 1879, is as follows: The aggregate amount so received is $160,050,101. The amount received during the year just ended is $19,528,788, which is $28,909,488 less than the amount received in the preceding year. CLEARING-HOUSE TRANSACTIONS. The transactions of the Treasury with the Clearing-House in New York during the last fifteen months are shown by the following statement: Net amount of cash and checks sent to the Clearing-House....... 452, 280, 576 56 452, 280, 576 56 The Treasury is almost invariably a debtor to the Clearing-House, the aggregate balances against it during the fifteen months having been $345,471,775.94 against balances of only $5,673,715.22 in its favor. The Treasury membership of the Clearing-House has been of great ad vantage to both the Treasury and the banks in saving the useless handling of money, and in enabling the Treasury to conform to commercial usage by accepting and collecting, without risk, drafts of banks and bankers tendered in payment of public dues and for other purposes. STANDARD SILVER DOLLARS. The total amount of standard silver dollars coined to September 30, 1881, under the act of February 28, 1878, is $98,322,705, of which $32,373,426, or nearly 33 per cent., is in circulation, and $65,949,279 remains in the Treasury. The amount coined during the last year was $27,753,955, of which $9,589,420, or a little more than 343 per cent., went into circulation, and $18,164,535 remains in the Treasury. The amount put into circulation in the preceding year was $11,956,680, or $2,367,260 more than in the year just closed, indicating a considerable falling off in the demand. During the six months ending with June, 1881, the amount in circulation ran down $445,775, but increased $4,250,021 in the next three months. The amount going into circulation is invariably larger in the last half of the calendar year than in the first half. This is largely owing to the autumnal demand for Southern and Western exchange, which is met to a considerable extent by shipments of silver dollars. The dollars, being forwarded from the mints to all accessible points at the expense of the government, for deposits of gold coin or currency with any assistant treasurer, furnish a means by which exchange on any point in the West or South can be obtained in New York without expense. Silver certificates are paid out at the counters of the various sub-treasuries for deposits of gold coin with the assistant treasurer in New York, but when required at any point at which there is no assistant surer they are forwarded from the nearest sub-treasury at the ex |