Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-07-10
REDEEMING TREASURY NOTES.
Secretary Carlisle Explains the Policy
of the Department.


of the Department..
A great many letters have been received
at the Treasury Department recently max
ing inquiries concerning the coinage Of sill
yer dollars. and the redemption and can
collation. Of treasury notes. and Secretary
Carlisle has found It necessary to issue a
statement ON the subject
The Secretary quotes the laws bearing
on the subject. and says: 1T will be seen
that while the law provides that redeemed
treasury notes may be reissued. 1t also in
the same section imposes an express limi-
tation upon the power to reissue by declar-
ing that no greater or less amount of such
notes shall be outstanding at any time than
the cost of the silver bullion and the stand
ard silver dollars coined therefrom then
held in the treasury purchased by such
notes. When such notes are redeemed in
gold there is no obstacle in the way of their
reissue. because such redemption does not
affect the stock Of silver held in the treas
ury under the act of July IA. 1880; but when
they are redeemed with silver coined from
the bullion purchased under that act they
must be retired and Cancelled, for, other
wise, there would be, after the redemption
and reissue. greater amount of notes out
standing than the cost of the silver original
ly purchased and then held in the treasury,
and this is expressly prohibited by the stat
ute. The purpose OF Congress was to pre-
vent the duplication of the currency, which
would have been the case If the notes and
the silver purchased with the notes could
be outstanding at the same time.
Treasury notes received in the ordinary
course of business, redeemed in gold, or
exchanged for silver dollars not coined
from the bullion purchased under the act
of Irrlu Il nf rnffn av,1
celed. All such notes reissued. Prior
to the 1st day of July, 1891, standard sill
yer dollars to the amount of 36,31S, ,264
were coined from bullion purchased under
that act. The so-called gain or seigniorage
arising from this coinage was 81, ,S37, ,Stt3,
which was paid into the treasury as a mis-
cellaneous receipt, leaving 81, 4S0,461 to be
held as fund to provide for the redemption
of the treasury notes as provided by law.
AT the beginning of the present admin
istration this sum of sly, 49,, 461 was still
in the treasury and standard silver dollars
to the amount of $, ,597, 223 have been coined
since that time. OF this last sum, however,
S520,O19 was seigniorage. leaving $1,O11, ,1H
TO be held in the treasury. II appears
therefore that the whole coinage under the
act has been $31 1,9O5,497 and that the
amount to be held in the treasury for re-
demption purposes was Sj0, ,6O5 OF this
sum $i,12l 900 have been used in the re-
demption of the notes, and that amount
has been retired and Cancelled. No treasury
silver was demanded, the policy and 'prac-
tice of the department having always been
to redeem in the kind of money demanded
by the holder of the note. The presentation
of treasury notes for redemption in silver
began In 1913, when there was a great
scarcity Of currency of small denomina-
tions, and there was redeemed during that
month S1.2I3,26l, which Is the largest
amount that has been presented during
any one month.
LAS shown above. there were held in the
treasury at the beginning of this admins
traticn SO, 4S0, ,461 in silver. coined from the
bullion purchased under the act of July IA
1880 Notwithstanding the fact that 81 =
591 2o3 have been coined since that time
there are now ON hand only s26, 1S9, 724."