New-York tribune., 1896-09-29
POPULAR OBSERVATIONS.
a.xcr11.T1oN OF TREASURY NOTES.
.,,-rH DOLLARS GRADUALLY TAKING THEIR |
PLACE IN CIRCULATION.

,x,p rOILARS GRADUALLY TANlNH IHhin
PLACE IN CIRCULATION.
- ~. Editor OF The Tribune
10 O. WIN The Tribune kindly explain the Follow
49, no,n,s in connection with the statement OF 'ne
Rational Treasury 49,, ,,.oo,r, ,o,os
~ treasury" and "outstandng" always con
=. and equal TO the original issue OF sloos'i'"~'
e." How IS II that the amount OF treasury
-. 1, circulation is given In the monthly sta'ehcn'
~ Snn,ernher l. 1896 s91.262b2 whereas the daily
VI ,or, for September q do not happen to nave
sSa, of september /. but 1t does not dlner ma
,, .u" ,rom ths), gives the amount OF treasury
outstanding as 1926 6S2. 80. an apparent us
creoancv of over S5@"V~! ,,
..1ra1s there any real necessity Tor Keeping
a.ar,lv in the National Treasury SO large an
so. - 100000 of National bank notes. or Tor
amount aansys aS on deposit in the National banks so
paNlae sunn as sl6sp.tN? Would no. u'ese
large s cr such considerable part Of them as
amounts, is,ey % be converted into United states notes
nr.S held in the Treasury nave 20 te5iu Al ~
ana .an the so-called endless chain Anu, at
~eaAra,e KATE could not and should not the various
United States deposi,iorMes M nayTs Trsa endeavor
o. snhod the public credi. by replenishing the sod
,Sserye when the necessity arises. o,s, ho rron
1n,osr,s,dered part of the available cash in the
3IsstS F,tS How does the seigniorage Of the 10000
-. ,bereabowts Of silver which is now being coined
Zach month appear in the Treasury statements z
Montclair. y. J., Sept. 15. 1895.
First and second-About S3OOO0oOo or the
rr,r,nal issue of Treasury notes have been pa'u
off in silver dollars. When this is done 'he ho'es
80 paid are cancelled and destroyed ana the ouI-
Hon thus set free is coined. The term outs'aiiu
ing" does not mean standing out OF the treas
nv" but in existence" Thus the oi'SIi'ai
amount was S15J931 .002 on September = ]"
was S126 $50 $50 and on September Il II was
S1o5.51S2SO AS security the Treasur. heiu oh
Septenber q silver bullion which cost sii''i'f'
MS and 1873 762 silver dollars amounting III
nil to S12551S2S0 OF this amount OF treasury
notes on September 81. S35,1Ol 100 We're In the
rrreasurv. and the balance, or S9o4lO'ol4' were
in circulation.
rhird-The explanation Of the amount or Ma
s,onaI bank notes held in the Treasury is simply
that the process of counting. sorting and pre-
sert,ng them 10 the banks OF issue for redemp-
ZION is slow and tedious, and they sometimes
accumulate in large quantities. For reasons or
convenience the treasury does not present them
% any one bank of issue until II has accumu-
lated 5000 or more of that banks notes. This
in connection with the delay caused by the can
collation. Of badly worn bills and the printing OF
new ones sometimes runs the amount up high
ss IL is at present. The deposits in National
banks are for the convenience Of the Govern
and are all secured Dy DOnuS VI lnt
total amount about S4,0000OJ represents the
accounts subject TO checks Of paymasters and
other Government officers points distant from
any Sub-Treasury. The balance represents de-
posts by Internal revenue collectors in about
$50 designated banks. mostly in the West and
South and is Of course. always subject TO
draft by the Treasury Department. Any ten
dency on the part OF the banks holding the de-
posts TO draw gold from the Treasury could
. be instantly checked by withdrawal of the
funds. 1t is more convenient to leave the money
on deposit under ordinary circumstances, and
d also adds just much to the volume Of cur
rency in circulation. 1t is doubtful II many Of
these banks, scattered as they are through the
distilling region and near army posts hold
enough gold to aid the Treasury materially in
case Of raid on the reserve.
Fourth-"Bonds and interest paid" figure In
The Treasury assets only temporarily. The Sub
Treasures make daily reports Of the amounts
paid but they send in the actual bonds and cou-
pons only at the end of each month. Until this is
done they do not receive credit for the money
paid out, so they carry the bonds and coupons In
their asset accounts.
Fifth--As soon as the seigniorage Is coined It
appears in the Treasury statement In the total Of
silver dollars-(Ed.