Arizona republican., 1899-08-02
ACLAMOR FOR PAPER
Eastern Bankers Want to EX-
change Gold for Notes.
II Cannot Be Done, BIT The Demand
Is the Best indication of pros
periiY-The Paper Money is
Scattered Among the People.

/ department. has been criticised by csr-
/ tain banks. mainly in the eastern
! states. for the stringe1cy of the cur
rency of which those banks complain.
1t is said at the department that the
treasury was never in position to be
fTeer from such. criticism than al the
present time. The treasury has
Taken special pains TO provide against
| currency famine. considerable fore
though having bee,s manifested in
| this direction, AID is now in position
10 exchange all nominations of notes
The tronhle is that the banks want
to give gold for notes. and this the
treasury cannot do.
Tie volrnle of Emitted States cur
rency is definitely restricted by law.
Silver certificates are issued against
standard silver dollars in the treas
1lry. Treasury notes are issued only
against bullion which has been pur-
chased. and this Is now forbidden By
law. There can ben no increase in
The volume of the currcncy beyond
the limit fixsd by law.
It is said at the treasury depart
ment frat the vast amount of currency
represented in this limit is in the
hands of the people. with the excep-
ton Of about twenty millions. which is
held for the redemption of unfit bills,
and this amount is about hard pan for
the redemption fund. The treasury is
ready. ii is said. to issue any amount
of small bills in exchange for other
denominations. but canna; issue cur
rercy for gold. because the issue OF
currency is fixed by law. as explained
The total volume of currency out
Standing June so. 1899, WAS S1.121.-
9}349O. In round numbers there were
S5cC09.OO0 in 81 bills, 34.000.G00 in
50 bills. S2ST. T.CGOO 600 in in 81 bills. 322.-
000.CGG IN so bills $3.50. .G00OCo in $50
leils and Ghe remainder in bills OF
higher denominations.
There are many reasons. it is ex-
plain i at the treasury department.
why The eastern banks are complain
boxes.
The principal one is that the money
is in the hands of tn people. y few
years ago it was Customary. at harvest
tine. TO ship lnoney-that is. currency
-frcm the east 10 the
west and south Usually in |
the fall and winter it came
back. after the crops were moved. to !
pay debts in the east
But, since the psriod of prosperity 4
has set in, throughout he west and !
this money has not been
coming back. 1t has remained in
those sections. Furthermore. it has
not stopped in the banks in those sec
tions. b5a. is now scattered among the
people.
In the west banks that ussd TO lend /
at s per cent are row glad to get +. !
Chicago and St. Paul are Offering !
morey or loan TO New York Mort /
Ga ges are bsing paid eff in the west
and south, and al, this shows that the
money is remaining out in abnormal
quantities.
In 4 word" said an official of the
treasury today. the prosperity of the
country IS the reason for this cIamor
on the treasury for currency. 1t is
he best Indication of the healthy con
dition pevailing throughout jhe land
in all branches of trade and industry"
IT,. So, .,r, 80 ,,-,--c -, ;,,crc,co 44o
volume of the money in circulation.
One IS 10 increase the national bank
On account of the high
premium on bonds. ,here is no diSpo-
s9tion on the part of the banks to in
crease their circulation, but rather
the contrary. The other method is to
use gold coins.
The banks claim that there is abra
sion and loss in rhe use of gold coins,
but this is impreceptible, and it is
urged in particular transaction The
main objection of course. is the weight
Of the gold. entailing higher charges
for expreSsage and Inconvenience
even when exchanging in the same
.ity.
1t is said at the 'raasury, however,
nat the banks usually want just what
-ha treasury wants. When the treas
NY was craving gold, the banks he'd
IN to it. Now that the treasury has
}lenty of gold, the banks are flush also
md want TO get rid or It.
In this connection it is interesting to
1ote that he amount of gold in the
treasury is now higher than the aver
lge of amy month. The total yester-
lay was $246. .33S. .SST. OF the treasury
.eceipts in 1898. 10 per cent were paid
n gold. while for the fiscal year 1899 :
he amount was 22S. OF The pay
nents made by the treasury in 1898,