The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-06-22
CURRENCY MATTERS.
Secretary Foster Recommend Provisions
Treasury Notes.

secretary Foster hooomm onds froVisions
asto Treasury Notes.
Secretary Foster has sent the following
letter to the senate recommending that
the provisions of the act of June s, 1872
be extended to the treasury notes as au-
thorized by the act of June IA. 1890.
under the act approved July IA, 1890.
There have been issued in payment for
silver bullion purchased, as shown by the
statement published June l, 1892, treasury
notes in the amount of 500, 39l ,9S6. il
has been the policy of this department TO
encourage the general distribution of
these treasury notes by issuing
them in the smaller denominations far
as possible. In pursuance of this policy,
and in order that there might be no
ground for discriminating against them,
my predecessor directed that the out
standing treasury notes be treated in
all respects the same as the United
States. Among the provisions OF the law
affecting the latter is one contained in the
act of June s, 1872, which authorized
thei. receipt on deposit without interest
from national banking associations, in
sums not less than $4,000, and the issue,
therefore, OF certificates of deposit
in denominations not less than
cOOUU. soon AFTER the lesuo
of the treasury note it was found that
their distributions in small denominA-
tions would be facilitated by extenking to
them the provisions of the act of June s,
1872 This was accordingly done after
consultation with the proper officers OF
the department. who were OF
the opinion that such action was
not in confiiction with any statutes
In fact, however, that the act OF July I,
1890, did not specifically provide for the
receipt of the treasury notes in this man.
ner. | deemed it advisable, when my
attention was called to the matter, to con-
suit the encouragement on the subject,
and that officer, under date OF Feb.
10, 1892, informed me attention in his
opinion such treasury notes are not so
receivable. AS this opinion was at vari-
ance with that under which the depart
ment had acted, il was thought advisable,
after careful consideration. to discontinue
the receipt OF treasury notes as special de-
posts and refer the subject 70 congress
for such action as it may deem proper.
AT this time there are no treasury notes
Of $50 in the department held as special
deposits. This condition is the result of
steps which were taken as soon az the con-
clusion above indicated was reached. AS
the crop moving period is near at hand it
is thought that the continued issue OF the
small denomination OF these notes Will for
the present be accountable and will not be
Immediately checked by the discontinue
ance OF their receipt as special deposits !;
but as soon as the return flow CT money to
the business centers is established the adj
dition of new currency ia small denomina-
tions without the privilege of special
deposit heretofore allowed will
prove embarrassing alike to the
public and the department and
in my opinion will eventually result
in an increase in the proportion of notes
of large denominations. Entertaining
this view and being desirious OF furnishing
to the people for their everyday use an
adequate supply of such denominations
of monev as they may demand, l do not
hesitate to recommend that the proyis-
ions OF the act of June 8, 1872, be extended
by appropriate legislation.
The Day In the senst.
The senate was in session for four and a
quarter hours today. although the attend
ance was very small. Part of the time
was given to the consideration of bills on
the calendar, part 10 executive business
and the chief portions 10 a speech by Mr..
Call In support OF a resolution heretofore
offered by him for an investigation of rail-
road corporations and their interference
in politics and elections. Senators Chan
dler and Gsilinger expressed their gratiti-
cation that the investigation, if authorized
Al al las they hoped il would bel. would
take in the state of New Hampshire. the
former asserting that 1t would prove that
Florida was not the only state where evil
existed, and the latter expressing the con-
viction that it would only prove the falsity
of the representations made by certain
persons in that regard. No action was
taken on the resolution and the senate
adjourned. till Wednesday.