Democratic Sentinel, Volume 16, Number 51, Rensselaer, Jasper County, 6 January 1893 — UNCLE SAM’S BIG CAIN. [ARTICLE]

UNCLE SAM’S BIG CAIN.

The Destruction of Paper Money Has Benefited the Government. In all that ha's been recently written about the depleted condition of Ihe United States treasury little or no account has been taken of the fact that with each passing year the treasury is a large gainer by the complete destruction by casualty of its outstanding obligations, says a AVashington dispatch. How much this amounts to. what percentage each year, etc., the best statisticians of the treasury department have rio means of definitely ascertaining. No two of their figures are alike. Since 1862, when the Government began to issue paper money, $5,819,629,108 have been issued of all kinds and denominations up to July 1, 1592. W ithin the same period $4,853,451,629 have been redeemed, leaving outstanding on July 1, 1892, as a liability against the Government, $967,178,479. »'The basis for the redemption of this vast sum of paper varies—gold for the gold certificates, silver for the silver certificates—sloo,ooo,9oo in gold as a reserve for certain notes, and so on. All this money is kept in the vaults awaiting the presentation of the paper for redemption. But much of this paper will never be presented. In au exhaustive inquiry on this subject made by United States Treasurer Hyatt it was estimated that the aggregate loss on all the issues up to January, 1888, would not be less than $8,700,000. This estimate did not include the fractional currency—“50 cents, 25 cents, 10 cents and 5 cent shin plasters”—in such extenslye circulation for the few years following the war. Secretary Sherman construed the act of June 21, 1879, as stating that $8,376,934 of fractional currency issued under various acts had been destroyed, and the debt statement as issued monthly oarries aa • debt bearing no interest but $6,908,-

462.620 f this fractional currency. United States Treasurer Nebeker, however, carries the full amount on his books, and in his report this year states that more than $15,000,000 of this fractional curroncy is outstanding, though it has practically gone out of circulation, and but little more than $4,000 was presented for redemption last year. What is outstanding is held to a great extent by collectors of coin and paper cabinets, and its value as such is greater than its face value as money. The aggregate of United States currency, fractional and otherwise, estimated to have been destroyed and not likely to be presented for redemption, approximates by these figures more than $14,(100,000. A recent estimate prepared in the Treasury Department places the sum as high as $20,000,000. This money can only be taken out of the liabilities of the Government by Congressional enactment. This will probably be attempted in the near future. The investigations into this subject have shown that most of the money lc3t has been destroyed in railroad wrecks that caught lire, though no inconsiderable quantity has been de-i stroyed by fires that occurred in the country banks, postoffices and resi-, dences.