New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-19
SC1RCTTV or LEGAL TENDERS.


There is much complaint among business men
and bankers of the scarcity of legal tender
notes. At many points it is said that this
scarcity causes serious embarrassment and just
now some of the leading New-York banks are
much troubled by it. The difficulty is com
monty attributed to the policy of the Secretary
of the Treasury and not unnaturally, because
of his urgent and persistent recommendations
looking to retirement of greenbacks and the
large accumulation of such notes in the Treas
ury last year but upon investigation it will be
found that he is not the cause of present in
convenience.
Last August the Treasury actually held
s742S5. 435 of the United States notes. of which
only about S2OOOOOO0 were represented by GER
tfcates in circulation. But the amount so held
in excess of certificates outstanding was much
larger at the end of Secretary Carlisle's last
fiscal year. for he reported SS9,3so.65s legal
tenders held in excess of certificates outstanding
June 20. 1896. If this accumulation was not
purely the result Of public preference, and was
I'm any degree due to a purpose TO curtail the
amount of such notes in circulation. it was
distinct violation of the law. which requires
that the amount of legal tender notes in Crcula
ton shall be maintained. and that when re-
VIGOROUSLY denounced as unwise by President
Cleveland and his Secretary, but neither Of
them had any right to dsobey 1t. If their rep
RESERVATIONS TO Congress were of no effect, they
were bound TO pay out the legal tenders, just as
they did other kinds of money. in the settle
ment of public obligations. at the desire of the
claimant
There are seasons when the amount Of notes
in circulation exceeds the current requirements
for use. so that those making settlements with
the Treasury usually call for currency certif-
Gates. instead of gold certificates or gold. Ac-
emulation OF the legal tender notes under such
circumstances is not disregard of the law. be-
cause il is necessary 10 give the creditors large
freedom 10 choose what kind of money they will
take in order to maintain the perfect parity of
all kinds Of money in common use There is
nothing 10 show that the accumulation in Au-
gust last had any other cause. Whatever the
opinion of Secretary Gage may be as TO the
wisdom Of the existing law. or the eXpcdency
of retiring the legal tenders. he Is not the man
10 set aside an act Of Congress by any unwar-
rantable exercise Of his power. The evidence
sustains him for although the amount Of notes
held by the Treasury in excess Of certificates
outstanding rose 10 SD. OO5 49, September last,
II was reduced TO S13. SCOPES by the end Of De
cember. showing q free response to the public
demand for larger note circulation In the fall.
The Treasury report Of Friday shows that only
S14,04S.657 was so held that day. and cOnsd-
ering the constant demands upon the great num-
Der of offices throughout the country which the
Treasury should be prepared 10 meet with legal
tenders If they are wanted, that sum Is about
as small as should be carried.
II is not impossible that the NewYork banks
have unintentionally much exaggerated their
own embarrassment a, this season by the rule