Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-08
1T IS NOT THE BANKS
But the People Who Are Withdraw
ing Currency from Circulation.
TALK WITH 4 TREASURY OFFICIAL
The Scarcity of Small Bills Ac-
counted F or.
PAST EXPERIENCE RECALLED

at is not the banks but the people who are
Withdrawing currency from circulation and
| boarding it up, and the sooner they under
stand the disastrous consequences that will
certainly result from o continuance Of such a
| course the better for themselves a. well - the
country in general"
30 said prominent treasury official to Star
reporter this morning. He said he was con-
WINGED that the scarcity Of small currency was
due mainly to that cause. There IL at least
$25, 0O0, 900 more Of small notes outstanding
| today, he said, than there was at the same time
last year, and yet we hear that merchants are
paying premium for such notes.
1t Is Not tho Banks.
"One thing is clear" he continued. 1.-THE
fact that the lack Of currency il in small notes
il q convincing proof that it is not banks, but
firms and individuals who have been boarding,
and this, for the most part, we believe in small
sums. The scarcity Of small notes after
the stress and panic Of the past two or three
months cannot be considered surprising. The
entire paper currency of the country aggregates
81, los 900 000 OF this only about $55 900 900 is
in 81 and % bills, and OF these about per cent
| are worn out and DESTROYED. There remain
about $2SO, O00, 900 in fves and e275 0OO, 900 in
-
tied to the e2S5. 000, 900 in ves, twos and ones,
the s56 ,O00, 900 of silver dollars, aud the &64,
600, 900 OF fractional silver. Out Of Oh, 6Ol,
OOO, 900 In circulation only about one-fourth,
therefore, IL in shape that it can be circulated
In ordinary retail transactions The remaining
three-quarters il in denominations S10 and up
ward. and half is over e20 and for all ordinary
| nsactions $40 bill is too large, while for
most $10 is so also.
Premium on Small Bills Accounted For.
Inevitably, with boarding in progress, the
great bulk Of il is done in the one-fourth of the
currency in actual circulation, which is in small
bills. The savings banks generally hold about
e35 600 900 in cash against their o. $50 900 900
Of deposits. This 10 about Q per cent II they
have expanded their cash holdings to 10 per
cent Of their deposits-no large amount in
times like this-this alone would sweep into
their vast vaults from one-hah to one-third tho
small change in the country, for Q savings bank
needs not large bills. but small Add to this
the boarding OF corporations and individuals
and the premium on small bills is fully &C
counted for.
.'As is usually the case. the lack Of small
| bills for the retail operations Of trade and
the payment OF wages succeeds at some iu-
terval the severest stress in the money mar
ket, the highest rate for money and the
largest number Of failures. 1t was not un-
Of 1878, that the most serious difficulty In Sc.
curing currency existed at that time. It was
not until July, 1885, over . year after the
panic Of 1884. that the New York banks ad-
vanced $6, 000, 900 in gold to the treasury
| in exchange for e6,00O, 900 in fractional
silver, partly to aid the treasury and still
more because there was in all directions q
demand for currency in small denomina-
tons and small change. An incipient scare,
not unlike that of this summer, was then in
progress. The treasury reserve had shrunk to
&160 900 900. and nothing buta surplus revenue
Of $50, 100000 prevented in President Cleve-
lands first administration the panic by which
his second administration will be remembered"
No Reason for . Scarcity OF Silver Dollars.
1t was stated at the Treasury Department
this afternoon that there is no reason whatever
for scarcity Of standard silver dollars as they
can be obtained at any subtreasury in exchange
for silver certificates and treasury notes Of
1890. Small notes in any amount can be OBJ
tanned in exchange for larger notes.
A statement issued today shows that there
are now outstanding in noted Of small denom-
nations as follows: Legal tender notes-Ones,
o. S32, 563; twos, e2,7992 pa; ves. Gel ,915 ,554
cal 977 ,283; twos. e15,511. $685. fves, S94, $780,
554; tens, CLOS, 725, 291. Treasury notes-ones,
Ga 079 ,264; twvs s12, 722 ,504 fves, S37, 1884,
ITO; tens, e44.642,570.
As an indication of the efforts being made
by the national banks to increase their cir
culation, the controller of the treasury has
issued the following statement:
National bank circulation, &C.: Bonds de-
posted to secure circulation since August l.
S, 43o. 900: of this amount there was deposit
ed yesterday 81, 462,5O0; currency issued on
bonds since August /. 50, 43O515; of this
amount there was issued yesterday $3.50, 155
Currency ordered printed for issue on bonds
since August !. N4, AL $50; Of this amount
there was ordered yesterday s2.142.700.
vHn Of ccic fipo
the Secretary Of the Treasury has ordered
the force Of the bureau of engraving and
printing to work from a.. m. until p. m.
This Is two hours over time. With these
extra hours the capacity of the bureau, in
addition to keeping up its regular govern
ment work. will be about 10000 sheets
stamped value Of each sheet Is $35, so that
the total issue per day, beginning with to-
day. will be about H,250.0O0. exclusive Of re-
Issues.