Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-01-07
FRACTIONAL CURRENCY.
Treasurer Huston Talks Upea the Rsnding
Bin to Restore It.

| Treasurer Huston Talks Up00 G00 k0D010H
Biu to Restore Il.
| HE THINKS THE DEHAND YoR THAT KIND OF
CURRENCY PURELY A SENTIMENTAL oNE-Hs
PROJECT TO UTILIZE THE ENTIRE AMOUNT OF
FRACTIONAL SILVER AID TRADE DOLLARS.
"whatever demand there may be for frac-
tional currency is in my opinion almost purely
| Of a sentimental nature" said Treasurer Huston
to writer for THE star this morning spro-
pos of the bill introduced in the House by Mr..
Kelly Of Kansas, directing the Secretary Of the
Treasury tn print fractional currency to the
amount of $50 600 900 in bills Of g. 10, IS and so
cents.
at Is not to be denied, Of course, that frac-
tiona paper currency has some advantages
over coins Of like denominations. For trans
portation by mail it Is ever so much more con-
venient, and it does not suffer loss of value
ordinarily by wear. The loss by abrasion Of
the subsidiary coins is enormous. You will
hardly find one that does not exhibit signs of
wear which signify appreciabie diminish-
ment in its worth. There are at present
% 900 900 haf-dollar pieces in the subtreasuries
at San Francisco and New York. and will VEN
ture TO assert that something like 10 per cent OF
those coins are in a condition to be considered
rs uncurrent on account of the abrasion they
have suffered. Not only do such coins undergo
destroying wear in the hands Of the public. but
in the process of being shifted about the vaults
in bags they lose individual weight.
THE DEMAND PURELY SENTIMENTAL
"But the demand for fractional currency il
made, as 1 have said. almost purely on senti-
mental grounds. People feel "a il they had
more money when they have a lot Of little bills
in their pocket, and the readiness with which
such small notes can be mailed in any Sims
Cd IL mi
much strength in this latter reason, inasmuch
as postal notes are purchasabls for the same
purpose.
Undoubtedly we have too many silver half
dollars, and it is most desirable that the sur
plus Of them now lying in the vaults should be
recoined as soon as possible into dimes and
quarters. The demand for dimes In particular
is much greater than the supply, and the same
may be said of nickels. You see, two dimes and
a nickel will always make quarter On the
other hand, the people seem to have more than
enough half dollars in current use. 1t 10 i'm
possible to tell just how many they have. We
know how many silver dollars are in circula-
ton. because we have not been coming them
for very long, but the smaller pieces have been
minted since the beginning OF things. Of the
fact that there are not enough quarters, dimes
and nickels we have positive knowledge.
THE TREAsURERs rRoJEcr.
"My project, now before Congress, is to
charge up to the bullion fund the amount in
the possession of the treasury Of fractional
silver coins and likewise the IS 900 900 of trade
dollar bullion, the aggregate being something
like S25. 0O0, 600. Surprising this done, pro-
pose that the Secretary be allowed to Issue the
entire amount in treasury notes. as under the
act of July IA, 1890, equal to the par value OF
the fractional silver charged to the bullion ac
count and the trade-dollar bullion at its present
estimated value. The Secretary would be author
lied by Congress to have the fractional-silver
and the trade-dollar bullion coined into stand
ard silver dollars, thus anticipating the ulti-
mate redemption OF the treasury notes. The
loss incidental to recoinage should be charged
to the silver profit fund.
The government ought hardly to interpose
any objection to printing fractional currency
if the people want it, inasmuch as so much Of
it is destroyed. or for other reasons never comes
in for redemption. that the profit on its issue
is very large indeed. Uncle Sam is many mil
lions of dollars ahead SO far in clear gain on
the small bills he has given circulation to in the
past"