New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-05-17
LETTERS FROM THE PEOPLE.
THE SMALL BILLS.

THE SMALL BILLS.
WHY THEY SHOULD MOI BE wITHDRAWN-Ihbh
CONVENIENCE AND UTILITY TO THE PUBLIC
To me razor OF Thc Trt6une
SIR: In ex-Secretary McCull0chs recent Harvard
lectures he advocates the retirement FIRST OF the one
and two-dollar greenbacks and later OF t0t
fiyes rs a means of increasing the volume OF sll
yer i'm circulation Other distinguished fnanciers
looking at the currency question in It's larger as
poets have made the same recommendation No
doubt the means proposed would be effective to ac'
coinpsh the desired end of securing
broader metallic basis for our paper
circulation. but ! think the advantage gained
would be more than Offset by the losses which
would be inflicted on many important branches OF
business if the small notes were Withdrawn, ana by
the annoyance the community generally would
suffer- About two years ago the Treasury Depart
ment quietly tried the experiment of not paying
out the one and two-dollar bills it took in. In a
few weeks complaints from business men OF the
scarcity of these convenient notes began to come in
80 rapidly that the experiment was abandoned. 1t
has not been renewed.
1t may be true that in ideal system of finance VIC
should have only large bills and that all small pay
ments should be made in coin, but the advocates OF
such a system do not, fear, look at the question in
its practical business aspects Millions of dollars
are sent through the mails every year in small bills
and the percentage OF loss is inconsderablc. very
large proportion of the subscriptions to newspapers
and periodicals are sent in tins way. The subscrIb-
ers often live at considerable distances from
money-order Offices, and if they cOuld con-
veniently procure IDoney-orderS the cost
would be matter OF some Importance
to them. Suppose farmer wants to send one or
two dollars for The WEEKLY TRIBUNE, or Tor his
county paper lie puts bill into an envelope,
drops his letter in the nearest post ONCE anu mat
is an end of the matter far any trouble to hun
is concerned. If there were no small DIS ne would
have to go 20 town and pay ten cents Tor money
order The chances would be almost equal that ne
would not subscribe at all. Every obstacle thrown
in the way of the easy transmission OF money by
mail Is serious blow to the newspaper business.
The aggregate loss to the weekly newspapers Occa-
stoned by retiring the small notes would DE ehor-
nous.
Other branches Of business would also suffer ser-
Gus embarrassment. The book publishing business
Is one that may PARTICIPANTS. People who 1--we IN
cities and get their books at the book stores nave
idea Of the immense number OF volumes sent out 10
the country by mail from the great publishing cen
tres of NeW-lOrk, Boston and Philadelphia. Inc
money for most Of these books comes in small bills
from country bOrhoOds, where thereare no book
stores and no mOney-Ordcr offices. The nigh value
publishers set on this branch of their trade may be
inferred by the they take to put at the end OF
their advertisements OF new works, sent Dy
mail postpaid on receipt OF puce." A large
part of it would be lost if the small bills
were abolished. Many other branches of trade
would suffer severely, and some, which depend
wholly upon retail orders by mail, would be aUsO-
lutey ruined. Ii will, no doubt be SAID that post
age stamps would take the place Of Bulls Tor small
remttauccs. To some extent this would he the
case but country post Offices do not carry large
amounts of stamps and seldom have any of large
denominations RemlttanCes Tor fractions OF a DOL
lar are now made in stamps, and many business
men are put TO much inconvenience and no niue
loss to get rid of the stamps they receive IN TINS
way. If Enclosures of one, two and three dol
lars were also TO come in stamps the annoyance
would be utOeTaoiC and the loss heavy.
Aud why, would like to ask, should the Govcr2-
meat force the people to use stamps as money
Why should 10 compel a man to put thhtY-thlee
little sticky pieces of green paper and one OF blue
paper into his envelope every time he wants TO send
a dollar by mail when one large piece OF green
paper with no mucilaCe on il Is 50 much more con-
yenient TO the sender and the receiver The argl-
ment for resOrtlng to postage stamps gives away the
whole question: because Ii people are Obliged to use
as money something not intended for money. II Is
evident that there Is serious defect in the currency
system. One important use for money is 10
send by mail for purchases and the payment Of
debts Neither silver nor gold can safely De sent Ia
letters. Paper III some form must be used. lle
Government regulates the paper currency. 1t Is
sues a portion OF it directly from the Treasury and
prescribes the manner in which the banks
shall issue tine remainder. Is 1t not
bound in this matter 10 study, not ITS
own convenience or that Of the banks, but the con-
venience OF the public Ii Mr.. McCulloch thinks
the people want small bills withdrawn or are IN
different on the question, let him ask the opinion Of
the first dozen business men he encounters. ven
ture to predict that eleven out Of the twelve VIII
protest against such proceeding. u V. 5.
Aea- York. May II, 1879.