The times. [volume] (Richmond, Va.) 1890-1903, 1899-03-28
DEARTH OF SMALL
PAPER CURRENCY.
Treasurer Roberts Looks fer Intense
Pressure This Fall. M
FEW SMALL NOTES AVAILABLE
The Rulk ofthe Nations Currency ~
Now Gold-LegisIation May DC lie
ouired TO Meet the Countrys
Currency Needs.
FEW SMALL NOTES AVAILABLE

,,-,stlrN.cTON. d. c., March 2.-Spe-
.t a., intense pressure for small paper
,.,,,,.,,,,, h. arucipated by treasurer
Roberts at the time Of the crop HoNihs
.,.eon next autumn. This pressure Il az
raoy such that the Treasury Is Constant
ly refusing Go supply paper GU Io.,,
exchange for gold deposits al Ne"
and Is directing Assistant lIe'su' -
mas. gold whenever possible over we
counters OF the sub-uedsuIl'S'
urer Roberts said to-day m leSPo''s5
irouirv hv your correspondent l'H"4"'"s
the supply of currency. ,.,,
THE appeals for paper are becoihlns
absolutely ptcOus. There la " Sp.,"''
demand from Kansas city ana olhel
points I'm the South and west VIC
small notes and standard sliNe' uo""t'
ave the forms Of money most deaI Gu
small notes usually accumulate IN lhe
Treasury during the winter after the
crop moving season. but this year very
few notes of any kind have come mo
possession of the Treasury. Inc treas
IVY is running over with gold and we
could get several millions more OF soid
than we have If we had small notes 20
exchange for it,
DUE TO PROSPERITY.
"To what do YOU attribute such scar
cify Of uspor currency" was asked
LARGELY 90 the prosperity Of the cOun-
fry. with the growth Of population anu
the EXPANSION of business. We nave had
no means of Increasing the supply oil
currency since the repeal of the purchase
clause OF the sherman .aw In 1898 except
GOLD production and gold imports ana
Inc national bank note circulation. HoIH
importe have been very heavy ana nave
immensely strengthened both the circu-
l1fing currency Of the country and the
Treasury reserve. / am personally
strong believer in a metallic currency
and would be glad TO see gold IN more
General circulation. II requires uihe'
however 20 educate sentiment upon that
point after so many years or experience
with paper. Moreover. ! Do not peHeNr
that gold coins should be ISSUED on lesS
than five dollars. and much or the ue-
r,.nd for currency is for smaller denoml-
nations We can furnish standard do.-
lsre md fractional silver and nre re
enondinc 10 calls for such coin. but paper
Is much preferred by most Of our cor
respondents
.What is the remedy for the present
condition of things?' inquired your cor
respondent. ,,..,,.
"Tlore are several possible remedies
rorUod Mr. Roberts 81 have offered 10
convert large United states notes into
small notes under conditions favorable
49, tro hanks. The offer has not been
accented. because most of the large notes
hc'd hy the banks are part OF their re-
ouired cash reserves. IL would De pos
s'ble for them 10 withdraw these large
notes from their reserves supsutut
gold and convert the large notes into
notes of small denominations. They have
moi shown much disposition to do this
because of the cost of handling and hold
lnp gold Some of them may be forced
to do il if the pressure for currency be
comes more intense during the crop
moving season next autumn.
CTS there not need for new Legislation
90 provide for the currency needs oi me
country" was asked, IF there IS not 10
br such a scarcity Of small paper as 70
preclpitate a popular demand for more
erconbacks?' .-.,.
NAV REQUIRE LEGISLATION.
OF think some legislation may be re-
ouirod." was the reply, but II must be
ON conservative lines. We might issu"
gold certificates. for the purpose or max
ing more available the surplus gold held
bv the New York banks. but / am in
clined 10 agree with the general policy
of Secretary Gage that the Government
should not carry on a safe deposit business
for the owners of gold at its own epense
) and without charge 10 them. one Of the
surprising things about the existing sit
nation is the way I'm which the national
hapk-note circulation Is declining. There
was fl loss I'm the face value of the bonds
on deposit TO secure circulation of about
$500 900 between January !, and the mid
dle of March. Some Of the banks. ] I'M
derstand. nave withdrawn even the new 3
por cent bonds and sold them at recent
quotations because OF the profit due 10
the premium. If this is their policy We
cannot rely upon the bond secured circu-
lation as the means for meeting the de-
mards for currency
"What do you think Of a bank-note
4 currency secured by large deposit Of
/ cash i'm the custody Of the Treasury.
somewhat like the leading banking sys-
tense" was asked Of Mr.. Roberts
A BANK NOTE CURRENCY.
4 Il have always favored such a system ~
( was the reply" "Of course. the Euro
pcan banks being. I'm most cases. mo-
ropolv issues-thc only banks Of issue
/ IN their respective countries-are subject