The amount of each kind of money embraced in the general stock

is given here:

MONETARY STOCK.

[This statement represents the monetary stock of the United States, as shown by the revised statements for June 30, 1905 and 1906.]

RATIO OF GOLD TO THE TOTAL STOCK OF MONEY.

The extraordinary addition of $118,050,777 in gold to the money of the country during the past fiscal year raised the ratio of that metal to the total stock to 48.07 per cent.

In the first quarter of 1907 the ratio of gold to the total stock attained a maximum at 48.9 per cent.

The ratio of gold to the total stock of money on July 1 in each year since 1897 is recorded in the table following:

RATIO OF GOLD TO TOTAL STOCK OF MONEY FROM JULY 1, 1897.

The total circulation during the past eight years advanced more than $898,000,000, of which the gold mines contributed 54.6 per cent; such an expansion would indicate no peril to the stability of the currency.

At the close of the fiscal year 1906, the circulation was $2,736,646628, or a per capita of $32.32. The increase during the year was $148,763,975, of which $48,942,586 was in gold coin and certificates, $30,264,175 in silver coin and certificates, $1,584,825 in United States notes and Treasury notes, and $67,972,389 in national-bank notes. By October 1 the total circulation had increased to $2,812,133,694 and the per capita to $33.08, an amount unparalleled in our history. The percentage of gold to total circulation became 43.6.

Comparisons for the years since 1890 are presented in this table:

MONEY IN CIRCULATION AT THE END OF EACH FISCAL YEAR FROM 1890.

NOTE.-Currency certificates, act of June 8, 1872, are included in the amount of United States notes and Treasury notes during the years when they were in use.

CIRCULATION AND POPULATION.

The population of the United States, it is estimated, has increased over 8,000,000, or about 10 per cent, since July 1, 1900, and the money in circulation for the same period has taken on a growth of more than $681,000,000, or over 33 per cent. The per capita circulation grew in the meantime from $26.94 to $32.32, an increase of nearly 20 per cent.

Statistics relative to the money in circulation and the population, by years, may be studied in the annexed table:

CONDITION OF THE UNITED STATES PAPER CURRENCY.

The condition of the paper circulation of the country can not be accurately described by the experience of this office thru its redemption divisions, for the reason that only the unfit United States paper currency is redeemed, while all the national-bank notes fit or unfit for circulation are redeemed upon presentation. However there is a notable and widespread interest among the public in the supply of a cleaner or more sanitary currency. The sentiment is a laudable one and should be attainable, because the expenditure, as per tables of cost, is but a trifle as compared with the beneficent results. No government can afford to have its currency a source of conveyance of infectious diseases or a menace in any way to the public health. The profit it derives from the issuance of currency is ample compensation for the small expense that this change would involve. It is gratifying to note that the House Committee on Banking and Currency have this matter in charge and are making most painstaking investigation as to the merit of this proposition.

The acuteness of Treasury conditions has been so urgent for lack of adequate supply of bills of small denominations that banks and others rather than utilize subtreasuries have remitted direct to the Treasury for redemption, preferring to pay transportation charges both ways in order to save time and secure the small denominations desired. The shortage in the supply of small denominations has had a tendency to retain the currency much longer in circulation, and for this reason, the following recommendation from the last annual report is renewed for consideration of Congress, viz:

It is suggested that provision should be made that will enlarge the facilities to all holders to exchange worn for new currency, and in furtherance of this object, section 3932 of the Revised Statutes may be amended to permit holders of worn and defaced United States currency to forward the same by registered mail, without charge, to the Treasurer of the United States for redemption.

UNITED STATES NOTES.

The amount of United States notes, by denominations, issued and redeemed during the year, and outstanding June 30, 1905, and 1906, are given in the table following:

The amount of United States notes redeemed in gold from January 1, 1879, to June 30, 1906, was $646,608,672, but the volume outstanding is undiminished because of the provisions of law which require the notes so redeemed to be paid out again.

TREASURY NOTES OF 1890.

The Treasury notes of 1890 are gradually disappearing; as they are paid into the Treasury they are canceled, under the provisions of the act of March 14, 1900, and for those received other than for silver dollars, silver certificates are substituted. The amount redeemed and retired during the fiscal year 1906 was $2,027,000. The total outstanding, by denominations, September 30, 1906, was $7,021,000, offset by an equal amount of silver dollars held in the trust funds for their redemption when presented, as may be observed on page 128 of this report.

GOLD CERTIFICATES.

The demands for currency in large denominations are met by the issue of gold certificates against gold coin in the Treasury or for deposits of gold coin by holders thereof. The volume of these certificates outstanding at the close of the fiscal year 1906 was $559,779,869, the highest point reached at the end of any year since the issue began in 1865.

The following statement shows the amount of each denomination issued and redeemed during the year, and the amounts outstanding June 30, 1905, and 1906:

By October 15 the volume of gold certificates outstanding had advanced to $610,611,869.

SILVER CERTIFICATES.

The volume of silver certificates outstanding increased during the fiscal year from $465,265,000 to $477,473,000, and this growth was entirely in denominations of $5 and under.

The right to increase the amount of silver certificates outstanding depends entirely on the amount of free silver dollars in the Treasury. The supply is limited, and the Treasury is without resources to meet the demand for small bills. The silver certificates of the denominations of $10 and above as they are redeemed are reissued in denominations of $5 and under.