Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-31

Why S'7tdN BtLLs are Sc0rce-Fenrs of Con-
traction Of National Bunk Cu,rency.
/ Washington special Gully 28) to Chicago Trib-
une.
The scarcity in one and tive dollar notes,
which is complained of in some sections of
the country. does not arise from any action
of the treasury department. in discussing
the money. The treasury makes no dis
elimination of denominations, all United
States notes being issued upon the same terms;
but the banks, on account of the extra labor
required to handle one dollar bills, have not
lately ordered as many notesof these denom-
nations as has hitherto been the custom.
There is a remedy, however, for the scarcity
of small notes of which any business
man may avail himself, and at the expense
of the banks. Under the existing reoula-
tions of the treasury department., national
banks or individuals can forward by express
to the United States treasurer at Washing
ton national bank notes in sums of thou
sand dollars, and have them exchanged for
one and two dollar United States notes. The
person forwarding the money for exchange
is required to pay the express charges to
Washington, but the expense of returning
the money is charged to the 5 per cent. fund
deposited in the treasury by the national
banks, to maintain their circulating
notes in good condition. The express
charges are fixed by contract between the
carrying companies and the government.
The charge per ST. 900 from all points di-
rectly reached by the Adams Express com
pany is 371a cents. When other express
companies are employed to carry money
packages from points not reached by the
Adams Express, the same charges per ST. 900
must be paid to each additional company.
Thus any person having 81 900 in national
bank notes can forward them to the treasury
and receive in exchange United States notes
of any denomination, including ones and
twos. Where United States notes are
forwarded for exchange, the sender
is required to pay the express charges
both ways, which for United States notes is
rs cents per 81, 900. Money forwarded from
New York city, Boston, and Philadelphia is
exchanged by draft on those cities. In for
warding money for exchange the sender
should always state the particular denomina-
ton wanted, and it should be distinctly re-
membered that all notes for redemption or
exchange must be forwarded to the United
States treasurer at Washington.
There are apprehensions in some quarters
that there may be contraction of the circula-
ton of National bank currency on account of
the high premium of the 4per cent bonds. The
theory is that the banks will not be disposed to
lose the six months interest which has al
ready accrued on the 1910 bonds deposited
as security for circulation, much less to lose
six months interest while waiting for the
four per cent. bonds to fall, and that the
banks, to relieve themselves, will, many of
them, abandon large amounts of their circu-
lation. Since the LIST of July there has been
$2,OOO,OOO of circulation surrendered by ma
tional banks. Of course, any such surren-
der temporarily locks up an amount Of
gree nbacks equivalent to the amount of ma
ional bank notes surrendered. The amount
of circulation thus secured by bonds which
are still on deposit as security for circulation
is $16, 200, 900.