The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1883-04-19
PAPER CURRENCY.
A Call for Its RestOrat ion-Imp0rt Corr
respondencc.

Hon. Charles j. Folger, Secretary Of
the Treasury, writes to Mrs. G. B.
Whitehead, Of Bloomfield, n. j., rs fol-
lows:
Il am in receipt of your letter Of the
18th ultimo, asking me to issue paper
fractional currency from the treasury.
"You say that You do not desire that
the issue Of subsidiary silver coin be
discontinued, but that there is loud
cry of publishers of books and pcrioli-
Gals, seedsmen and farmers and liter
airy people for the issue Of fractional
currency as measure of convenience
to them in the transaction of their bust
ness.
I'm reply / might content myself with
calling your attention to the act OF Con-
gress approved April II, 1876, which
directs the Secretary of the Treasury
to issue silver coins of the United
States of the denomination OF 10, 20, %
and 30 cents of standard value in re-
demption of an equal amount OF frac-
tional currency, whether the same be
now in the treasury awaiting redcmp-
ton, or whenever it may be presented
for redemption; and the Secretary OF
the Treasury may, under regulations OF
the Treasury Department, provide for
such redemption and issue by suLstitl,-
ton at the regular snb-treasnrics and
public repositories Of the United States
until the whole amount OF fractional
currency outstanding shall be redeemed.
-
This act, which substitutes a frac-
tional coinage of silver for paper cur.
rency, is held by the department to
forbid the further issue Of fractional
currency.
but, as there has been more or less
agitation in favor Of an issue of paper
fractional currency, influenced, l an
constrained to believe, by persons who
have not fully considered the subject in
oil its bearings, desire to call your Mt
tention to some aspects of the case
which have no doubt have been over
looked by you.
THE issue of fractional currency
which began in the year 1863, was dis.
continued in 1876; the largest amour,
ever outstanding being about SAC, 900.
600 in the year 1874. The amount now
outstanding, which has changed yer,
little since the close of the year 1873, i
$15, 1898, OO7.17. There can be but little
doubt but that almost the entire
amount, which has not been presented
at the treasury for payment, has been
totally destroyed; representing loss
to the people of this country during the
fourteen years in which fractional cur.
rency was kept in circulation, of up.
ward OF $l,OOO,0OO per annum; loss
which has fallen most heavily upon the
poorer classes, as it is we'll known that
they are the largest users Of small cur.
rency.
/ consider that Congress. by the
adoption Of the law above quoted, acted
wisely in allowing the people of this
country the advantage to be gained by
the use Of a fractional circulating me-
dunn of intrinsic value, such as is used
by most Of the enlightened nations Of
the earth, in lieu Of paper representa-
tives of value, and / should regret ex-
ceedingiy should the supposed inter-
ests Of small class be served in oppo-
sition to the best intere sts Of the whole
people, by return to the extraordinary
Legislation which was thought necessary
during the war.
1T would seem that some stronger
necessity should be shown to exist be-
fore the United States again places it.
self in the category of non-specie-using
nations"
Mrs. Whitehead replies to the Secre-
tary as follows:
Your courteous reply to my letter,
asking that you use your influence in
favor Of restoring the fractional paper
currency, with which we were once
blessed, was duly received. Please ac-
cept my thanks therefor, and also for
your permission later, at my requestp
to publish it with reply.
ANY opinion of yours, regarding
finance, will be read with interest, and,
as the special branch under considera-
tion is one in which [ think the people
ought to be much interested, am glad
of SO good an opportunity to extend the
agitation upon it, which you recognize
as already considerable.
/ bad not, as you presumed, over
looked the objections to which ;ol
kindly called my attention. l under
stood that the fractional paper was
withdrawn by act of Congress, and did
not expect its restoration independ-
emily Of that honorable body. But,
should you issue it without their au-
thority, You would not, by that act,
transcend your powers more than did
one of your predecessors, when he or
dered the acceptance of greenbacks for
duties on imports in opposition to law
printed on the back Of said notes.
Il cannot agree with you that the loss
to the country is greater in the use Of
paper than of fractional metallic cur
rency. You say that of the SAC, 200, 900
OF fractional paper currency outstand-
ing, $l5,OOO,O0O was unredeemed in
1879, and you conclude that almost
that entire amount is lost. In this, l
think you are mistaken. As soon as
the people realized that q great con-
venience was withdrawing from them,
they held on to what little was left in
their possession. lam certain / did and
as far as my observation extends, each
individual who had piece of scrip
after it became scarce laid it aside as
souvenir, or for use through the mails,
instead of presenting it for redemption
and could We sean the private Golfers of
our 2ONO0, 900 adults, think We should
find large amount of the currency you
suppose lost. / know one gentleman
who has - of it. 4 lawyer in Wash
ington, ID. c., i'll my presence, short
time ago, took some from his money
box, and remarked on its convenience.
Bat it must remain question just
how much of the unredeemed amount
is in existence. ] will admit, for the
arguments sake, that it is all lost, and
even then show that the metallic cur
rency which replaced it has cost us
more than 81 100000 Il year Allow
me to :uote from recent letter from
Hon. /. L. Spinner, ex-Treasurer of
the United States, in contrast to what
YOU say about the loss of $1,000, 900
and on whom it falls. The Watchdog
Of our treasury is good authority, and
from his letter, dated Jacksonville,
Fla, Feb. 2, and addressed to Wallace