The times., 1899-08-27
PAPER MONEY IN CENTS
The Treasury Urged TO Issue Such
Fractional Currency.
A Widely Circulated Petition to
Secretary Gage - Mr.. ynnderlip
FormuIates Reply - Advantages
of the Scheme for Isolated Districts
Smiling Movements in the Past.

A more or less concerted effort to have
the Government resume the issue of frac-
tional paper currency has come to the at
tention of the Treasury Department. Not
only has the department received copies OF
a circular letter which is apparently being
given wide circulation, but Secretary Gage
has received at least one letter setting forth
respectable individual argument in favor
of the proposed issues. Assistant Secre-
tary Vanderlip replied TO this last letter
at considerable length, describing the his
tory of fractional paper currency during the
period of its circulation beginning in the
Civil War, and stating the objections which
are commonly urged against the resump
tion of the system. 1t is evident that Sec
retary Gage and the officials of the Treas
ury Department would frown upon the pro-
posal TO issue fractional currency, If meas
ure to that effect should be introduced in
the next Congress, in the same way that
it was frowned upon by another Secretary
of the Treasury, in 1883. The circular let
ter which has come TO the Treasury De-
partment's notice makes this statement:
People living in the country or small
towns are compelled to order many neces-
saries of life by mail from large cities.
Among these are books, papers, magazines,
etc. Improved methods OF manufacturing
| have reduced the price of many OF these
necessaries TO a fraction OF dollar. Postal
money orders cannot be had in small post
Offices and are expensive as well as trou-
blesome to obtain. The proof necessary to
sustain this opinion is afforded constantly
in everyday life, and will present itself
to you If you VIII place yourself for mo-
ment In the position of one who, living
some distance away from postofhce, de-
sires to order books, papers, or other goods
by mail. The undersigned respectfully So
licits your cooperation for the purpose Oh
securing the passage of law authorizing
the printing of fractional paper currency
to the amount of twenty-five millions of
dollars, each bill to be of the value OF
twenty-five cents. These bills to be offered
for sale at twenty-six cents each by all
postmasters Charging an additional cent
for each bill will have the effect that no
more will be circulated than are actually
needed. Our experience teaches us, now
ever, that a demand for such fractional
paper currency exists and there can De
no doubt that this demand is sufhcientiy
strong TO ensure the sale OF the proposed
amount"
Representative Babcock, who was mem
Der of the Republican caucus committee
which devised the new currency Dill at
Atlantic City this summer, has been quoted
as generally favoring the proposition set
forth in this circular letter, aithough II
is not positively known that he would
endorse it if it were brought before the
next Congress.
The letter recently received by Secretary
Gage on a similar subject was addressed
| to him by Walter ID. Sttnson, the post
| master at Augusta, Me. Mr.. Stinson pro-
posed that fractional currency in the same
denominations as the present subsidiary
silver coins be issued by the Government,
not for general circulation, put for the
| conyenience of nersons wishing to transmit
small sums of money by mail. The writer
of the letter asserts that there is con-
siderable popular demand for such cur
| rency for the purpose described, and this
demand might possibly De augmented, not
| only by the Inconvenience OF obtaining
| postoffice money orders, but by the addi-
tional expense OF obtaining such orders
imposed by the war revenue tax AS