Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-07-27
DEMAND FOR PAPER
Eastern Banks Want to Exchange
Gold for Notes.
this The TREASURY CANNOT Do
Money Remaining in the West and
Northwest.
TO INCREASE CIRCULATION

The Treasury Department has been criti-
cised by certain banks, mainly in the east
ern states, for the stringency of the cur
reEcy of which those banks complain. 1t Is
said at the department that the treasury
was never in n position to be freer from
such criticisms than at the present time.
The treasury has taken special pains to
provide against a currency famine, con-
siderable forethought having been mani
tested in this direction. and is now in a
position to exchange all denominations of
notes
The trouble is that the banks want to
give gold for notes, and this the treasury
cannot do.
The volume of United States currency IS
definitely restricted by law. Silver certifi-
Gates are issued against standard silver dol
lars in the treasury. Treasury notes are
issued only against bullion which has been
purchased, and this is Eow fob Gden By
law. There can be no increase in the vol
umc of the currency beyond the limit fixed
by law.
1t is sad a. the Treasury Department that
the vast amount OF curr ency represented
in tbs limit is i'll the hands OF the people.
with the exception OF about twenty millions,
which is held for the redemption of unfit
bills, and this amount is about hard pan
for the redemption tund the treasury lS
ready, it is sa d, to issue any amount OF
small bills in exchange for other CeroEl--
nations, but cannot issue cHri eEcy for gold
because the issue of currency is fixed by
law, explained.
The total volume of currency GGts:and-
ing June 30 1899, was Sl,l2l,93.i90. In
round numbers there were S1j,G@,uaD i'll 81
bills, $:s4 ,eo0,GU in 81 bills, S2oI,o33,Go0 in
$5 bills, Sa222 100000 in Si0 bills, S2D,0tJe0
in $50 bills and the remainder in bills of
higher denominations
In the Hands of the People.
There are many reasons, 1t is explained
at the Treasury De epartr.vnt, why the east
ern banks are complaining Of u lack Of
currency in their cash boxes.
The principal one is that the money is in
the hands of the people. a few years ago
it was customary, at harvest time, to ship
money-that is. currercy-from the east to
the west and the south. Usually in the fall
and winter it came back, after the crops
were moved, to pay debts in the east.
But, since the period of prosperity has
set IN, throughout the west and northwest
this money has not been coming back. 1t
has remained in those sections. Further
more, ii has not stopped in the banks in
those sections, but is now scattered among
the people
In the west banks that used TO lend at s
per cent are now glad to get /. Chicago
and st. Paul offering money on loan
to New York. Mortgages are being paid
shows that the money is remaining out in
abnormal quantities.
In word said official of the treas
ury today, the prosperity of the country
is the reason for this clamor on the treas
ury for currency. 1t Is the best indica
ton of the healthy condition prevailing
throughout the land in all branches of
trade and industry
To Increase the Circulation.
There are two ways to increase the VOL
ume of the money in circulation. One is to
increase the national bank circulation. On
account of the high premium on bonds,
there is no disposition on the part of the
banks to increase their circulation, but
rather the contrary The other method is
to use gold coins.
The banks claim that there is abrasion
and loss in the use of gold coins, but this
is imperceptible and it is urged. in particu-
lar transaction. The main objection, of
course, is the weight of the gold, entaiing
higher charges for eXpresSage and incon-
venience even when exchanging in the same
city.
1t is said at the treasury. however, that
the banks usually want just what the
treasury wants. When the treasury was
craving gold, the banks held on to il. Now
that the treasury has plenty of gold, the
banks are flush also, and want to get rid
of it.
In this connection it is Interesting to note
that the amount of gold in the treasury is
now higher than the average OF any month.
The total yesterday was S2i6.33S SS7. Of
the treasury receipts in 1898, 4.5 per cent
We're paid in gold, while for the fiscal year
1899 the amount 22S OF the pay
ments made by the treasury in 1898, &c pc"
cent was in gold, and in 1899 il was OBJ.
these figures showing the increased use OF