Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-09-02
OF TREASURY
Just Now It is Furnishing Small Notes and
Silver Dollars.
Demand Not So Great as Usunl-The
Policy Pursued-Some Gain In Gold
to the Government.

The furnishing of small notes and silver
dollars to meet the demand for money to
move the crops is likely to absorb the
energies of the Treasury Department dur
Ing the next few weeks more than the de-
mand for gold. The circular sent out by
Treasurer Morgan on Tuesday last, Offering
to exchange small notes for deposits of
large legal tenders and gold at New York,
was responded to by telegraph within a
few hours of its publication, and orders
have since been pouring in upon the treas
ury to deliver small notes at various points
In the cotton and farming districts of the
country
DcmEMd Not So Active as Usual.
The demand Is not so active this year as
it has sometimes been, and is not expec ted
to be, because the national banks are bet
ter equipped than usual with small notes,
their surplus reserves are larger and the
Treasury itself has been making its recent
shipments of money in notes for s. and $40.
There is large supply of both these de-
nominations in the currency reserve vaults
of the treasury.
The supply of notes for 81 and 81 is not so
large, but can be increased If necessary.
There is little discrimina ton in the de-
mands upon the treasury as to the char
acfer Of the paper curi ency sent out, SO
long as 1t is in new bills for small denomi-
nations. The usual policy of the depart
ment is to unload silver certificates as far
as possible, to follow these by Sherman
treasury notes. and to retain the old legal
tender notes until the last. The diffusion
of small Sherman notes in distant parts
Of the country prevents their presenta ton
at the subtreasuries for redemption in gold
and the boarding of the legal tenders cuts
off in a measure the excess of currency
iedeemable in gold at New York.
Margin of Free Silver Dollars.
The margin of free silver dollars against
which silver certificates can be issued was
$2S,259, 1871 at the close of last week, in
Guiding S, 493 6l4 in certificates in the treas
ury cash. The treasury notes issued under
the Sherman law in the treasury were $685.
G61 ,619 and the old legal tenders were S23,-
6l4.322 The latter amount does not in
cfude, however, all the legal tenders lock-
ed up In the treasury, for s76 775, 600 are
held against currency certificates which are
issued to the national banks on the deposit
OF legal tenders in the treasury as a more
convenient means of maintaining the bank
reserves. The first two forms of notes
alone form an ample working margin for
treasury purposes and will prevent the en-
barrassments which have been suffered in
years when the general cash was low The
treasury suffers no net loss by exchanges
but requires a margin Of 25OOO 900 more or
less to cover notes in transit and in process
of redemption.
Aggregate of Redemption.
Redemption of Sherman notes and silver
dollars takes place. from time to time
where silver dollars are preferred for GER
tain purposes, and the notes thus redeemed
are Cancelled and retired. The aggregate
of these redemptions, since Secretary Car
Isle inaugurated the policy of cancellation
has been $1f,34i, 10, and the outstanding
volume of Sherman notes has been reduced
by the process to $144, 5S4, $50. The process
of currency exchange adds something to
banks are willing to direct the deposit of
gold at the New York subtreasury by their
New York agents in return for small
notes delivered in their own cities. The
government still gains little gold also by
the exchange of Columbian half dollars, of
which about $4,000 have been issued, for
the yellow metal.