The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-03-27
CURRENCY.
Great Pressure for
Small Paper.
CAN'T SUPPLY IT.
Scarcity of This Kind of
Money Explained.

Washington, March 26.-An intense
pressure for small paper currency is
anticipated by Treasurer Roberts at the
time of the crop-moving season, next
autumn. This pressure is already such
that the treasury is constantly refusing
to supply paper currency in exchange
for gold deposits at New York, and is
directing assistant treasurers to pay
gold whenever possible over the coun-
tiers of the sub-treasuries. Treasurer
Roberts said today, in response to in
curry by your correspondent regarding
the supply Of currency:
The appeals for paper are becoming
absolutely piteous. There is a special
demand from Kansas City and other
points in the south and west, where
small notes and standard silver dol
lars are the forms of money most de-
sired. Small notes usually accumulate
In the treasury during the winter, after
the crop-moving season. but this year
very few notes of any kind have come
into possession of the treasury. The
treasury is running over with gold, and
we could get several millions more of
gold than we have if we had small
notes to exchange for it,
10 what do you attribute such
scarcity of paper currency" was
asked.
Largely to the prosperity of the
country, with the growth of population
and the expansion Of business. We
nave had no means of increasing the
supply of currency since the repeal of
the purchase clause of the Sherman law
in 1893, except gold production and gold
imports, and the national bank note
circulation. Gold imports have been
very heaVy, and have immensely
strengthened both the circulating cur-
rency OF the country and the treasury
reserve. l am personally strong he
lever in a metallic currency, and
would be glad to see gold in more gen
eral circulation.
III requires however, to educate SEN
tlment upon that point after 50 MANY
years of experience with paper More
over do not believe that gold coins
should be issued of less than five dol
lars, and much of the demand for Cur
rency is for smaller denominations We
can furnish standard dollars and frac-
Slohal SILVER and are responding to calls
TOR such coin, but paper is much ire
TERED by most of our CORRESPONDENTS "
What is the remedy FOR the nresen+
condition of things?" inquired your
There are several possible remedies -
replied Mr. Roberts. Il have offered tn
convert large United States notes info
small notes under conditions fayoraISo
10 the banks. The offer has not hen
accepted because most OF the Isroa
notes held by the banks are a part IF
Lhelr required cash reserves, 1t womb
pe possible for them to withdraw thesa
large notes from their reserves snhl
INTO notes Of small danor,i,I
ATOMS They have not shnr-,
Luuch disposition to do This n,
-ause OF the cost of handling and boI6
lg gold. Some of them may be forced
10 40 II II the pressure for cu.rancy, |
becomes more intense during the croT |
moving season next autumn"
is there not need for new lepisIa+io,, |
. provide for the currency needs Of
ne country was asked, IF there is NOT |
y De Such a scarcity of small paner os
. preclpltate popular demand for
more greenbacks? ?" Ioi
think some legislation NAV he -,
luirea' was the reply, but it must bo |
~ conservative lines. We might issns
sold certificates, for the Durnosa 1e
n3Hing more available the surplus gold
req by the New York banks, bur am
ncIlIed TO agree with the general noIic,,
''-'~' 81 bDllCy !