New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-05-03
SECRETARY WINDOWS POLICY.
THE ADMINISTRATION NOT IN FAVOR OF
CONTRACTING THE CURRENCY.
THE TREASURY NOT DISPOSED TO HOARD MONEY
Use TO WHICH THE SURPLUS WILL
BE PrT-THE BANH RESERVES.

USE TO WHICH THE SURPLUS WILL
BE PuT-THE BAN!; RESERVES.
Washington Nav 2.-Secrctary Window has written
a letter I'm reply to an article in financial newspaper
on the general subject Of the currency in which he
refutcs the assertion that the Administration favor
a contraction Of the currency. lie gives figures In
regard TO tho circulation and Treasury holdings on
MAY / and makes comparison with the estimated cir
culation Of the principal countries OF Europe. Ac-
cordipg 10 these figures. and estimating the present
popuIation Of thc United states at Ga 100000. the
arnount of metallic and paper money In the United
States not including any portion OF the amount held
by The Treasury Of the United States, Is FL so per
CAPITA or more than in any OF the leading countries
Of Europc with the exception Of France. in which he
circulation /, estimated at so 80 per capita
In regard 10 the money supposed 10 be boarded by
tbc United states Treasury. the secretary says:
Aside from the fund deposited In the Treasury BY
National hanks for redemption Of their notes which
have been retired which the Government holds a. trustee
and the balances deposit In The Treasury By dshur'ng
officers the only reserve which Is kept by the Treasury
Il 500 COO GOO In gold Tor the redemption OF lcgandcr
no s povded by the acts Of 1873 and 1882 There /,
ro di.poson on the part oi the administration Of the
Treasury 10 hoard money and the socallcd surplus which
T. tho cxccss Of the receipts expenditure be
u.cd under the prcscn; only the redemption Of the
bonded debt the United States. which Is being done
r,p,dlv a. the bonds be- udciousy purchased. Tho
surpu. on the Instant amounted only to s35 $50 G23
exclusive Of fractional silver oin) Of which s3 0s SOS
was on deposit In National performing thc duty Of
circulating medium. 1t is the policy and purpose Of tho
Department withdraw large portion Of this deposit and
invest In United States bonds rapidly II Dc
done without Of decreasing the actual circulation
In support ~ this statement tho secretary tina.
Of the s6G6,6i326I total amount Of money in the
Treasury on April l. $l3i .a3s ,079 In gold coin was
deposited for the redemption Of gold certificates and
$3.50 G0j.J62 in silver dollars for the redemption Of
silver certificates Neither Of these amounts belongs
10 the Government hut both are held simply In trust
Tor the redemption Of gold and silver certificate, out
standing. s67 sol .c67 held a fund for the
demption Of national bank notes, consisting Of money
paid the Treasury by national banks for that pur
pose, while s3s072lS1 Represented the money 20 tho
credit Of dsbu.ing officers and kept In the Treasury
merely ~ a matter Of convenience and which they
check against; 6O74 j37 consisted Of silver bullion
from melted trade dollars, si63i.0ol silver bullion
at the minis purchased for the coinage Of the silver
dollar I'm process Of coinage $40. -45G4 Of fractional
silver coin. largely mutilatcd and ahradcd for which
there f. no current demand. and SiOO.oOOoO0 was
held reserve for tie redemption Of lccal-'cndcr
notes required 10y law, total Of 9GG5.93l.05l.
In reply 10 the argument that the bank reserves,
amounting 20 -jij.965 oil. should not be considered
as in clrcuaton the Secretary refers 10 the official
statement that $27G,o!7,739 was held by national
banks on February 2s and also TO the laws regulating
the reserve fund and says:
The lawful actually Kept in bank under these re-
Qucncnt, Of Law thcre for the purpose Of paying the
checks OF deposition, who loan their money u the banks
either without interest or a. low rat" o. Interest Win
The understanding that IL Is t. be returned o. them on
demand without notice whenever they desire to Withdraw
10 from bank and unr.- deIoitor, understood TIA, a."
iaw required banks to keep certain amount on hand
win which 10 return their deposit. whichever they
vaucl them. drpostors would not place the money Wt
the banks keeping bat would &" large eAtht
hoard H. and 70 great extent withdraw u permanently
iron circulation. This requirement. Is entirely IN tho
Interest - de00rs aad against u" interests 81 the
anks which otherwise ght lend out The entire amount
OF their deposits
4. II . The law allows 1916 National bank. 10 loan
eighty i've pF ccfs Of their entire deposits. requiring
them u keep only sN pr cent Of the deposits ia bank.
Will, tho Other per cent nay BE- Loaned to other
National bank, re-sryc clte-. W. IN turn loan
out seyoniy-n,c per cent OF such l6in..
Again the - banS- IA 'Nt'cn rescr,c citos per.
ud to loan % per Of their ,ntrc po,its being
required Keep only orocleht 0; these IN bank while
the remaining onccghih may be deposited with National
IN the three central cities. which turn
lean ont thfco.'o' rth- Of such amount.
While portion Of th, fund. held trust for the de-.
o.oi, u 10 belongs T. necessarily kept out Of cir.
cus,on large portion Of u j. constantly IN circulation
10 s. ,hr fund created by daily deposits O. lawful
received nom the customers o. the banks, and that iron
which ry make daily payments Of lawful mQncy u ;c.f
customer
WITH regard to the statement that @G7 .G7s.4so OF
gold and silver known to have gone out u the
country last year. the secretary that tho net
loss Of gold coin last year was s274O320. and that all
the other expectation, Of gold and silver far
DO ascertancd, were In bullion or fine BAR, which DO
not affect the circulation. The estimate 81 100000,
900 more Of coin exported seems To be without
substantial foundation. How much has been carried
away in the pockets ~ travellers. and how much
turned I'm the same way. We have no means of know
lng The amount thus carried away Is evidently
small for the reason that travellers always purchase
letters " credit for the bulk Of their expenses abroad
and usually supply Themselves with limited amount
Of foreign coin for expenses on steamer
The secretary that the percentage Of ultimate
upOn National Treasury notes Is not IN
Of = per cent Of circulation for twenty years. and
he close. his letter follows: :" have already
mendcd in ny annual report an increase Of currency
amounting 10 about $4,000 600 aunum. II should
he evident therefore that this letter il not Intended
cxpr.ss any opinion 10 the suiclencv Of our
rccj but only 10 correct certain statements In said
article as 10 It's quantity