Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-06-20
TREASURY NOTES.

Secretary Foster Recommends Extendi the
Provisions Of the Act OF june 8, 1879.
Secretary Foster has sent the following letter
to the Senate, recommending that the provis-
ions Of the act Of June g. 1872, be extended to
the treasury notes authorized 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 to the amount Of
S97, ,391, 1886. It has been the policy
Of this department to encourage the
general distribution Of these treasury notes by
issuing them in the smaller denominations so
far as possible. In pursuance Of this policy
and in order that there might be no ground for
discriminating against them my predecessor di-
rected that the outstanding treasury notes be
treated in all respects the same as the United
States notes. Among the provisions of law If
footing the latter is that contained in the
act Of June 8, 1872, which authorized
their receipt or deposit without interest from
national banking associations In sums not less
than $40, 900, and the issue therefor of certifi-
Gates of deposit in denominations not less than
S5, 900. Soon after the issue Of treasury notes
began it was found that their distribution
in small denominations would be facilitated by
extending to them the provisions Of the act Of
June 8, 1872.
with the proper officers Of the department, who
were Of the opinion that such action was not in
conflict with the statutes.
In view Of the fact, however, that the act Of
July a. 1880, did not specifically provide for the
receipt Of treasury notes in this manner
deemed 1t advisable, when my attention
was called to the matter, to consult the
Attorney General on the subject, and that
officer, under dnte Of February IS, 1892,
informed me that in his opinion such treasury
notes are not receivable. As this opinion
was at variance with that under which the de-
psrtment had acted, it was thought advisable
after careful consideration, to discontinue the
receipt Of treasury notes special deposits and
refer the subject to Congress for such action e
it may deem proper.
At this time there are no treasury notes Of
1880 in the department. held - special deposits
This condition ID the result Of steps which were
taken a. soon o. the conclusion above indicated
was reached As the crop-moving period was
near Mt band it IL thought that the continued
issue Of the smaller determinations of these notes
will for the present be acceptable and viii
not be immediately checked by the discontinue
ance Of their receipt a. special deposits, but ~
business centers Ia established the abolition
of new currency in small denominations
without the privilege Of special deposits
heretofore allowed viii prove embarrass-
ing alike to the public and the Department.,
and In my opinion will eventually result In an
increase in the proportion Of notes Of large de-
nomination.. Entertaining this view and
their everyday sse sn sdsquats supply Of such
denomination ef money - they nsy demand
do not hesitats 70 recommend that the pro-
visious Of the Get Of Juns 3, 1o71, be extended
By sppropriste legislstiou to the treasury notes
auAhoF1ssd By TIE cot cf July u, 1eeo