The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1893-06-02
HoARplNc GOLD.

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
beers 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 a long time sort of ba-
rometer of the kinds of money most
plentiful and the disposition to use gold
in ordinary transactions. Gold certiti-
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 were in gold certificates and less
than per cent. in silver certificates
These figures began to drop after the
passing of the Sherman law, until gold
certificates constituted so per cent. of
the receipts in October, 1890; AZ per
cent. in April, 1891, and Il per cent in
April, 1892. The percentage had
dropped below 30 per cent. in January
of the present year and since May l it
has disappeared altogether from the
returns. More striking still is the
advance in the proportion of pay
ments in silver certificates These
constituted but 10 per cent of the pay
ments early in January, climbed TO 23
per cent. the first ten days of April and
to 80 per cent. the first ten days of the
present month. The statement for the
ten days ending May 90 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
gold legal tenders next and then the
Sherman treasury notes The dissred-
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 ISIS. 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
unwelcomed 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 asquiellly
as the express companies could carry
them Silver certificates of large de
nominations can scarcely find resting
place. Their issue has been suspended
as a useless luxury. The only way OF
keeping the silver certificates afioat Is
in small denominations and the large
notes are cancelled as they come in and
converted into the smaller ones.