The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-17
GOLD RESERVES CONDITION NOW
Good, strong Hundred and Fifty Million
and Still Growing

Washington, Oct. 16.-"Within a year
the gold reserve in the Treasury will
| be 5000, 600 000," said prominent
treasury official today. 1T is now, in
round numbers, $50, 900 900 and is bound
| to increase. The heavy trade balance in
cur favor, due largely 10 the crop situ-
| alton, will mean large gold importations
| and then the supply Of the metal already
in the country is phenominally laNge. In
| such circumstances the banks WIG pre-
fer not to be encountered with it, Ence
the greenoack is practically as good as
a gold certificate. OF the wisdom of
Secretary Cages policy of declining to
take gold at San Francisco in exchange
for currency at New York there can be
no doubt. The present situation is not
one which vii warrant the government
in relieving private concerns of the ex-
pense of Transporting gold, especially
since tn enumber of silver dollars in the
treasury has dropped to 6,344.254.
The most notable currency movement
OF the day is the cancellation of tha
Sherman notes, the place of which will
ultimately be taken by silver certif-
cafes. In some quarters this is looked
upon as d policy Of the department, or
something of the kind, when in reality
it is merely carrying out an express pro-
vision OF the law Of 1880, although per-
haps a result not fully understood when
the law was passed, Section of the
act of July IA recites that the treasury
note issued in accordance with the pro-
visions OF this act shall be redeema ole
on demand in coin at the treasury OF
the United States. or az the office Of any
assistant treasurer Of the United States,
and when so redeemed may be reissued,'
and now here comes the rub: 'Bu, no
greater or less amount OF such notes
snail be outstanding at any time. than
the cost of the silver buliions ana 8ee
standard silver dollars coined fherefronf
than in the treasury, purchased by such
notes. Now, you see, If the treasury did
NOT redeem and cancel these notes when
they came in, there would be a greater
amount outstanding than the cost of the
silver and the standard silver dollars
coined tnerefrom.
Mr.. Carlisle discovered this effect OF
the law, and in August, 1898. inaugural
ed the practice Of carrying outs its pro-
parentiy been overlooked. The amount
OF Sherman notes then outstanding was
Sl55 1881, 002, while today there are only
Sll0, 81, $50, showing a cancellaI lion in
four years Of $40, 265, 10. These notes
are received at ;, the treasury, with other
forms OF paper currency, in exchange
for silver dollars. The local banks ask
for the coin instead % small bills be-
cause the treasury by law IS authorized
10 pay the eXpreSsage on the silver 10
any part of the United States, while il
the remote bank wanted small bills Of
any kind it would have 10 pay ordinary
bankers rates for their transmission.
l. is also true that in some parts of the
south and west the people prefer the
actual silver dollar 10 its paper equiva-
lent, perhaps because il Is less liable
TO De mislaid ot destroyed. However
that may be. when the season FOR NOV
ing the crops comes around each year
great deal Of paper currency Is deposit
ei with the treasury in exchange foc
silver dollars. and in running through
this currency every time We come - a
sherman note il is laid 10 one side and
cancelled The silver dollar which IS
issued in exchange for it IN course o.
time finds its way back to the treasury.
snd for i, a silver certificate may De
issued. SO in the long run the present
process amounts 10 a substitution o.
silver certificates for Sherman notes.
Il; vii! De only a question o. TINS. /
unless the law is changed, When me (
Sherman notes viii 50 oGt q existence. 4
This IS desirable IN the in,eres, Of SIM T.
plicity. We snail have one less kind %
currency % look out FOR, and the silver .
certificate is q much less convenient H. !
strumeut for raiding the treasury N 4
times D. panic. Whiie this movement /
OF sherman noes has been going on for 4
four years. il is nov a little stronger i
than usual on account OF the greater i
activity in the agricultural regions.
1t i unfortunately rue that a strong (
gold reserve ami an active condition " /
general business Is not always favorable 4
for currency reform. The public seem 4
10 become Indifferent when matters are /
fairly satisfactory. instead o. realizing l
that such a time is the very oes; % all 1
for inauguraiing much-needed improve /
nen,s. Currency reform is bound 10 4
come sooner or later, ou; I hardly look I
for any .mp0rgan; measure as soon as .
! should Ike 10 see L.
Washington. oct 15--TAe cd fantie /
sailel To-Day from Boston Tor Montreal. /
where she VIII be turned over % The 1
representatives o. ne Michigan naval /
militia