Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1899-11-09

all the essential points as to the operas
ton of the law. but other matters re-
lating to the detail of administration
will be taken into the courts when
these are decided.
DEMAND FOR PAPER MONEY.
One of the Notable Marks of General
| Prosperity.
4 Washington, Nov. 4.-The pressure
for circulating paper money which has
accompanied the increase of business
activity has been brought home in n
forcible manner to Secretary Gage by
the character of the demand for gold
certificates. Never before in the finan-
cih history of the country have the is
sues of small gold certificates been
even half SO large as within the last
three months. The total issues of GER
tificates from August to October 81,
1899. were $129.249,419, which is less
than the amount which has been often
attained before. 1t is the preference
for certificates of the denomination OF
$40 which has indicated the pressure
for paper currency. The issues of GER
tificates for $40 from August to Octo-
i 49, - "SaO Poo,oto,tOf, Wulie LuS IS
sues for $1,000 We're $24,774, 500. The
number of the small certificates is
about. eighty times the number of
those for $1,000. The largest amount
OF certificates for $40 outstanding at
the close of any previous fiscal year
was in 1891, when the amount was $14,-
221.774. The total outstanding certifi-
Gates at that time were 2,461, 429,
which was trifle less than the amount
the previous year, when the outstand-
ing issues We're $157, ,979. The is
sues of certificates for $40 on the lat
ter date were only $11,953,474. The
present volume of small issues surpass-
es, therefore, by more than three times
all previous conditions, except on one
occasion, when the proportion was
much less than half. The pressure for
the $40 certificates is reflected in the
demand for the next highest denomin-
ations, THE certificates for $50. The
amount issued between August and
October 81 has been SIS, 4S3, SOS, while
1890, when the total of certificates was
at the maximum, was only $2,043,205.
Gold certificates were originally in
tended as a convenience for the banks
in maintaining their reserves and not
for general circulation. The issues Of
1890 included $55,63O,OOO in certificates
for $4,000, $34,40O,O00 in certificates
for $4,000 and $23,061, 800 in certificates
for $1,000. These three large denomin-
atoms absorbed more than two-thirds
of the whole amount outstanding. The
issues from August to October 81,
1899, however, have included only $13,-
100000 in certificates for $4,000, $1O,-
IO25,000 in certificates for $4,000 and $24,-
774,5 in certificates for $1,000. the
amount of these large certificates max
ing up little more than third of the
total issues. The fact that certificates
for $40 have been so largely taken
would seem to indicate that smaller
certificates would be welcomed il they
were available. The law limits the
minimum denomination to 500, and the
1 pressure for the notes has fallen heavi-
| ly upesl this minimum.
This demand for small gold certifi-
catse is only one of many indications
jof the pressure for paper currency in
the United States during the past year.
4 The government has been obliged to
pay out gold certificates because it has
had practically no other form of pa
| per money. The United States notes
and treasury notes, which piled up in
the treasury so rapidly during the pc
Rod of depression, have now almost
disappeared, and it has required care
full manipulation of the public money
to meet the demand for standard sill
yer dollars and subsidiary silver. The
| per capita circulation of the country
has been kept pretty uniform during
the summer and autumn at $25 and a
4 fraction. This apparent level of the
circulation has been maintained, how
ever, in the face of great expansion
of bank credits, which would natural
1y call for an increase of bank reserves.
A statement was issued by the Indian-
apolis monetary committee in the
lspring, showing that national bank re-
serves alone, without counting the
great expansion in state and private
banking operations, had absorbed the
larger part of the increase in the mon
ey supply since 1898. leaving consid-
erably diminished circulation per cap
ita in The pockets of the people. Deyel-
opments during the summer and au-
| tumn have been consistent with the
facts then pointed out. Such intense
pressure has been felt upon bank re-
serves that the national banks of St.
Louis dropped far below the legal linz
lit by the September reports to the
comptroller, and the New York banks
have upon the average barely main
tanned their required reserves by
charging very high discount rates. It
is commended by the advocates of
changes in the currency laws that con-
ditions would be much more favorable
and that discount rates would be more
reasonable il the banks were permitted
under proper regulations, to adjust
their circulation to the changing con.
ditions of business. Secretary Gage
will discuss this subject in his annual
report, and will be able to point out
in relation to the subject that the need
of banking reform is no longer theo-
ry, but serious condition which CON
fronts the country.
|. Bnrglaries I'm Davenport.
l