Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1899-08-03
GOLD IS ABUNDANT.
Eastern Banks Are Offering Gold
for Paper Notes.
MONEycoLLECIED IHsOUTHANDWE
ST. Louis, Chicago aud st. Paul Tender
Currency TO tlle East-Eyidence of
Prevailing Good Times
Treasury Receipts.

Washington. d, G., Aug. 1.-The
eastern banks are complaining that
they can not get enough paper notes.
They have offered to exchange gold
for notes. but the treasury department
has been obliged to refuse. The treas
ury, like the hanks, has an oyer-abund-
ance OF the yellow metal.
"The amount of gold which the gov
eminent now holds is higher in aver
age than for any previous month";
said an official of the treasury repart-
ment. "The total on hand yesterday
was $246,33s,s57. We are receiving
more gold in the ordinary treasury re-
ceipts and paying out more in the dis
bursements Of the government than
ever before. More than % per cent OF
the payments of the last fiscal year
were in gold, against less than 8 per
cent in the previous year. Nearly %
per cent of the receipts last year were
in gold, as against S per cent in the
previous year.
3 i b
"The country must be using more
gold coin in the ordinary transaction
OF business. This is the only solution
to the problem confronting some Of
the banks, caused by the stringency of
the currency in the east. The treas
ury has done all in its power to pro-
vide against currency famine. It
was realized months ago that the ip-
creasing demands of business would
call for more money. The treasury
took precautions to have all denomina-
tons OF notes ready for exchange and
stands prepared at all times to issue
all denominations of currency in ex-
change for larger.
Banks are complaining against the
treasury for the famine in currency.
We are not to blame. We are not
boarding dollar of currency today.
We have put into circulation the full
amount authorized by law, retaining in
the vaults only the barest margin nee
essary for the redemption of mutila-
ted notes. The banks understand. or
they ought to, that the issue of curren-
cy is absolutely limited by law. We
can not go above the amount fixed in
the statutes.
The trouble with the banks is that
they want to exchange gold for our
currency. When the treasury was in
trouble and needed gold the banks
held on to it. They can not be blamed
for that, however, because the interests
OF the treasury and the banks are usu.
ally identical.
Il do not believe that there is COM
plant among the people of a lack OF
currency. nor is there much complaint
from western banks. It is only in the
east that there seems to be any trou-
BILE. and that is because the money is
collecting in the west.
IF the currency is not in the treas
ury, and if the banks say they haven't
IT, the only explanation of the situa-
ton is that it is in the pockets of the
people and the cash drawers of the
tradesmen. That is a sign of good
times. 1t was formerly the case that
money was shipped west and south
during the summer to move the crop.
Then it came back to New York in the
winter in payment of debts. But for
the past two years the money has been
sticking in the west and south.
"a significant feature OF the situa,
ton is the fact that st. Louis, Chicago
and st. Paul are offering money to the
east. 1t has been paid into the banks
in clearance of mortgages, and the
surplus is such that the normal and
conservative needs of the community
do not call for the money.
II do not look for any relief of the
situation to come from increased ma.
tional bank circulation. The banks
are not rushing to increase their cir
culation with government bonds at
present prices. 1t looks as if the banks
will have to overcome their prejudice
against handling gold coin and use it
more frequently in the ordinary course
OF business"
$500 asi154