The following table shows the amount of standard silver dollars and of fractional silver coin in each office of the Treasury on September 30, 1886, and on that date last year:

The amount of standard silver dollars coined, on hand, distributed, and outstanding, at the close of the year, and up to November 30, is shown by the tables on pages 96 and 97 in the Appendix. The percentage of distribution and cost is also given. As will appear by these tables, there is now in circulation the sum of $61,761,448, the largest sum yet attained in the circulation of this kind of currency. From the changes observed in the tables above referred to it can safely be deduced that the maximum of circulation has been obtained, or if not fully attained, will be by the time this report reaches Congress. I am of the opinion that $65,000,000 is the extreme limit which may be obtained. It certainly cannot be maintained at that sum when the new silver $1 and $2 certificates are in full supply. A return to the Treasury of at least one-half of the amount now in circulation must be looked for. Assuming the correctness of these views, and the experience of the Treasury for the past year fully sustains me in expressing these opinions, the sum now and to be spent in the continued purchase of silver bullion and its coinage into standard silver dollars leads one to ask whether, if the further purchase of the silver bullion be determined upon, the coinage might not cease, and the sum which this costs be saved to the public Treasury? The amount expended so far upon the coinage of the silver dollar, outside of the cost and consequent loss upon the purchase of the bullion, amounts to $4,933,467.72. All of the cost, in excess, say, of the cost of the coinage of the sum of $75,000,000, represents pure loss, and amounts, at 2 cents per dollar, the cost of these coins, to $3,433,467.72. To add to this loss would seem unnecessary, and the sum could be expended in the purchase of that amount more of the silver bullion. The adoption of this plan would at least have the merit of adding just so much to the credit of the silver profit fund. The aggregate amount of these coins moved by the Treasury to September 30, 1886, has reached the sum of $722,

040,141. The amount transferred to and from the Treasury and subtreasuries for purposes of payment and shipment was $90,855,000; the sum distributed through the country by payments over the counter amounted to $145,732,722, and the shipments by express amounted to $158.336,195. The expenses for transportation have amounted to $774,758.92, or $1.96 per $1,000 handled. The amount coined from July 1, 185, to September 30, 1886, was $37,185,905; the amount moved from the mints during the same period was $13,768,802; the difference amounting to $23,417,103 has been uselessly added to the coinage of the country. The cost of transportation is greater from these offices, and not a dollar of the amounts moved need have been transported, as the supply in the sub-treasuries is ample for all the requirements of the public. The shipments from the mints were made in order to save as much of the appropriation for the transfer and free shipment of silver coin as possible, as the cost of such shipments is borne by the silver profit fund when the shipments are made from these offices.

The cost to the Government for transportation of these coins averages $1.96 per $1,000, and the cost to the people of their return to the Treas ury averages, say, $2.54 per $1,000. The average cost of transportation to the Government of the silver certificates per $1,000 is, say, 50 cents; the cost to the people, say, $1.25; a saving of $2.75 per $1,000; a strong argument in favor of the issue of such amount of these certificates, as the business of the country will permit to be carried on without disturbing its gold revenues or interfering with the maintenance of a strict parity between the two metals. The amount of silver dollars coined to date is $246,673,386; the amount of gold coin and bullion on hand is $251,450,853.57. The cost of the $246,673,386 is $216,049,269.20; the present value $188,014,354.81, showing an actual loss of $28,034,914.39. The Bank of France to-day is in this position: It holds in its cash at par $220,273,860.62 in silver; its present value at par of exchange, exclusive of abrasion, is $166,509,691.21; showing a loss of its entire capital and surplus which amounts to, say, $44,028,223, and $10,000,000 in addition if called upon to liquidate its affairs to-day.

FRACTIONAL SILVER COIN.

The denominations of the fractional silver coin. held in each office of the Treasury on September 30, 1886, were as follows:

In office of

Fifty-cent Twenty-five- Twenty- Ten-cent Five-cent Three-cent Unaspieces. cent pieces. cent pieces. pieces. pieces. pieces. sorted.

The amount of fractional silver coin held by the Treasury on June 30, 1885, was $31,236,899.49, which amount decreased during the past fiscal year to the sum of $28,904,681.66. The amount held November 30 is $25,808,067.32, showing an increased demand for these coins, caused by the revival of business. Part of this increase will be lost during the months of January and February, owing to the return of this kind of money through the operation of the law authorizing its redemption in lawful money. The amount shipped through the country during the fiscal year was $6,723,249.31, the amount paid out at the sub-treasuries was $25,283,602.14, the amount received $22,354,772.75. This amount cost $18,310 for shipment by the Government, and the amount deposited in the sub-treasuries represents a cost in labor of $24,000. The labor of twenty men has been employed during the year in counting, assorting, and shipping this money, and as long as this is done at the expense of the United States Treasury, so long will five times the amount necessary to do the business of the country be ordered from the respective sub-treasuries. If left to the operation of the natural laws of trade these coins would, when accumulated at points in excess of present need, fall to a slight discount, be purchased and remitted to those who desire them, the discount paying a part, if not the whole, of the expense; and except when mutilated or defaced, would not find their way back to the Treasury. The redemption of these coins, as now carried on, means that the railroads, ferries, theaters, ice-cream saloons, dram shops, etc., have the coins received in the course of their business carefully counted and assorted at the sub-treasuries at the Government expense. As the beneficiaries are not charitable institutions, there would seem to be no good reason why taxes should be imposed upon a whole people for their exclusive benefit. Referring to remarks under the head of "Standard Silver Dollars" and the opinion expressed therein as to the limitation of the issue of that coin for the use of the people as currency, it is suggested that an attempt be made to utilize silver as a purely fractional currency by giving more weight and beauty to the pieces, including in the coinage a five-cent silver piece. If the attempt were made it would be found, withdrawing the $1 and $2 paper money being granted, that at least $125,000,000 of fractional silver could be carried, and an annual demand be created of from three to five million dollars of the like coin for shipment abroad. This demand would steadily increase as the new coins became known.

MINOR COIN.

At the close of the fiscal year the Treasury held $377,814 in minor coins, a decrease during the year of $490,651.64. The amount nomilly on hand November 30 was $163,584.53, but of this $145,236.16 was uncurrent and held by the mint for recoinage, leaving actually available $18,348.37.

The following table shows the amount of each denomination of minor coin held in the several Treasury offices on September 30, 1886.

The method of the redemption of minor coin is objectionable, as it compels the recounting and reissue of these coins at Government expense. So far as the experience of the present Treasurer has any worth it is found that the only practicable control of the tendency to constant waste is, that while granting all proper requests, such as are granted shall be at the cost of the applicants.

RECOINAGE OF UNCURRENT COINS.

Under the appropriation of $10,000 for the recoinage of uncurrent coins, fractional silver of the face value of $159,854.25 was recoined into dimes during the year, at a net loss of $9,743.12.

Great complaints have been made during the current year as to the inadequacy of the supply of small silver coins and 5 and 1 cent pieces. This is due to the omission on the part of Congress to grant a contingent fund to the Treasury sufficient to re-coin the mutilated and defaced coins presented during each year. The demand for these coins can neither be governed or regulated, and the Treasury should be prepared to meet any exigency of this kind from funds within its control, due report being made to Congress of the expenditures under this head.

FRACTIONAL CURRENCY.

The redemption of fractional currency during the year amounted to $10,088.36, leaving an apparent amount outstanding at the close of the year of $15,330,025.85.

Since 1876, when the issue ceased, the redemptions have been as follows:

The total amount of the various issues of fractional currency paid out by the Treasury, the date when the issue ceased, the amount outstanding at the close of the fiscal year, as shown by the Treasurer's books, and the percentage of the outstanding to the amount issued, is shown in the following table:

The percentage of the amount outstanding to the amount issued of United States and national-bank notes issued prior to 1875 is given in the following table, in order that comparison may be made with the amount reported to be outstanding of the earlier issues of fractional currency:

A further comparison of the number of pieces of fractional currency purporting to have been issued, and to be still outstanding, with the number of pieces of one and two dollar United States notes and national bank notes, which latter notes were in active circulation and use during about the same period of time, shows so great a disproportion as to attract attention and comment as to a possible error in the accounts