Evening star., 1899-03-16
GOLD IN CIRCULATION
The Amount Greater Than Was Ever Before
Known
Salaries Being Paid In Yellow Metal
Being HOarded by the Banks.

that more gold Is in circulation in this
country at this time than has been known
for many years. The treasury Is paying
nearly everything in gold, while the banks
and clearing houses are getting even with
the treasury by settling with the govern
ment in gold. Nobody seems to want gold,
and the really scarce money now is the
legal tender. The banks are now boarding
their legal tenders, reversing the situation
of a few years ago.
Any check presented at the treasury here
or at the subtreasuries will be paid wholly
in gold, except the necessary change This
will be in silver or currency. The fact is
that the available paper in the treasury
is too small to be paid out. 1t reaches
total, in legal tenders, of s1535O,000 1t is
absolutely necessary to keep that much
on hand for redemption purposes.
Despite the heavy payments in gold by
aries, being paid in this coin, the gold rolls
back into the treasury. The gold stock
star ds at about $241.0OO,0OO. which includes
the $10o00o,oo0 gold reserve. The majority
of banks in the country are not prepared to
hold gold by putting it away in their vaults
and keeping it. Consequently they are
boarding their legal tenders and the yellow
metal is doing a great deal of the business
OF the United States at this time.
Good Sign of Business.
Treasury officials say that it is a good
sign of business. This is especially so in
view of the fact that comparatively few
greenbacks are coming in for redemption.
The people too busy to bother about
sending in old money. 1t is kept in circula-
tion because the treasury may redeem it in
gold, thereby forcing the banks to handle
more gold and less currency.
Three years ago, March 16, 1896 when
the presidential campaign was opening anu
III ,,,;y, i,,tI
lied that silver would be the Issue, tho
treasury kept the yellow metal in its vaults
and paid out silver certificates. OF course,
the treasury did not then have the supply
of gold it now possesses and the banks
We're boarding the yellow metal. The re-
sult was that the supply of gold in the
treasury was $121 600 600, while the paper
money held in stock was proportionately
great. At that time the treasury had $107,-
900 legal tenders on hand and did not
care to part with them under any circum-
stances. The banks and the people likewise
held to legal tenders.
At that time the total available cash in
the treasury was $266, 900 900, while now it
is SITS. 900, 600.
1t is stated that the gold coin now in cir
culation is in good condition. There will
in time be an abrasion from the constant
handling and somebody will lose something.
The law provides that after a coin has
been in circulation twenty years and goes
below the limit of tolerance the govern
ment will redeem it only at its metal value,
y gold coin is below the limit Of tolel ance
when it has lost one-half of 1 per cent of
Its weight 1t is said that where gold Is IN
constant circulation it soon loses weight.
Enormous Accommodations
The big increase in the amount of gold
held by this country over that of three
years ago is deeply interesting to the stu
dent of politics. Not only do the treasury
holdings of gold show an enormous in
tional banks shows heavy increase
On May 1, 1896, after the political cam
paign had opened fairly well, the gold held
by all the national banks, as shown in the
statement at that time, was S157, 161 800
When Controller Dawes made his call upon
the banks few days ago their statements
showed total available supply of $312,-
911.I96 in gold, double the amount held in
1886 -.
In addition to this large increase is the
increase in the holdings of state banks and
other institutions. showing an enormous ac-
cun1ulation of gold.
Controller Dawes and other men who
have given the subject great study believe
that the large increase is due in a great
measure to the fact that gold has come
out of its hiding in the last year or two
Prosperity and confidence have opened
stockings and other deposit places and the
money has gone back into circulation and
INTO the deposits of the banks.
TWO other reasons are recognized as
adding to the gold supply. One of these is
the large imports of gold. due to the heavy
WORDS, the United States sent SO much
goods abroad that Europe's gold came here
In heavy quantities. The other is the in
creased gold production.