Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1893-06-01
BOARDING GOLD.

HOAhOIN1 6OIOs
Banks Hoarding All the Gold and Only
Paying Out Silver Certificates-The Mat
ter Under Consideration by Secretary
Carlisle.
NEW YORK, May 26.-The growing
tendency among banks to hoard gold
and every form of paper money redeem
able in gold, while paying out silver
certificates issued under the Bland act,
is attracting the attention of Secretary
Carlisle, and is rapidly convincing mem
bers of the administration that the re-
peal of the Sherman law must come
very soon if our gold and silver cur
rency are not to part company. The
receipts at the New York custom house
have been for long time sort of ba-
rometer of the kinds of money most
plentiful and the disposition to use gold
in ordinary transactions. Gold certif-
Gates have been freely paid for customs
duties for years since they were first
authorized, because of the convenience
of handling their large denominations.
In January, 1890, before the Sherman
law passed, more that 90 per cent. OF
the receipts at the New York custom
house We're in gold certificates and less
than 8 per cent. in silver certificates.
passing of the Sherman law, until gold
certificates constituted so per cent. of
the receipts in October, 1890; Al. per
cent. in April, 1891, and IA per cent. in
April, 1892. The percentage had
dropped below 80 per cent. in January
of the present year and since May 1 it
has disappeared altogether from the
returns. More striking still is the
Cd
ments in silver certificates. These
constituted but 10 per cent. of the pay
ments early in January, climbed to %
per cent. the first ten days of April and
to 33 per cent. the first ten days of the
present month. The statement for the
ten days ending May 20 shows that 40
per cent. of the payments have been in
| silver certificates. The treasury notes
issued under the Sherman law, still re-
deemable in gold, come next in the
| amount paid, and the old legal tender
notes, secured by the gold reserve,
come next and constitute the smallest
| per centage outside of gold. The rule
seems to be to hoard gold first, the
gold legal tenders next and then the
Sherman treasury notes. The discred-
| tied silver certificates are showed off
| upon the government and the safer
money kept for more exacting credit
| OrS.
| This tendency would be the less re-
markable if there was any accumula-
! ton of silver certificates in New York.
The fact is exactly the opposite. The
| forms Of money last issued are usually
the most common in New York, Wash
ington and Philadelphia, and these are
Sherman notes. Silver certificates have
been well distributed over the country
during the thirteen years from their
first issue in 1878, and the suspension
of compulsory issue of coin in the
summer of 1891. The only way
in which they drift back to New
York is by the discrimination of the
western banks which return them in
unbroken packages to their New York
reserve agents when they receive them
| from customers to whom they have
been paid by the government. Such
unwe1comed guests have the silver GER
tificates proved in the banks that pack.
ages dispatched from Washington to
distant points in the west have
tumbled back into the New York sub
| treasury within a week or ten DAYS
after leaving Washington, or as quickly
as the express companies could carry
them. Silver certificates of large de
nominations can scarcely find a resting
| place. Their issue has been suspended
as a useless luxury. The only way OF
| keeping the silver certifica ties afioat is
in small denominations and the large
| notes are cancelled as they come in and
| converted into the smaller ones.