The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-11-23

In cents. n million pieces at regular inter-
yais. They are for its purposes worth more
than the same sum in any other form. Yet
an attempt 10 pay $4,000 in cents I'm the
course of business would arouse vigorous
and justihable protests
! Convenience IN currency is often qucs-
ton of denominations only-of size. not OF
| substance. The cry for small notes and
| subsidiary coin has of late driven out ap-
peas peas Tor particular sorts of paper or for
| solu- rive pieces of 81 each will pay a
claim OF s., but one piece OF s. cannot sat
| lsfy i've different claims. For the moving
OF crops small notes are essential: they are
not convenient in large mass for bank re-
| serves. but il is possible TO use them. Many
| large institutions have learned by expert
| ence tnat Ii pays them 10 hold their small
notes from one season TO another. rather
| tnan exchange them for large notes I'm the
winter, with the task OF splitting them
| again in the ensuing summer. BY the new
law silver certificates are restricted 10 de-
nominations Of $40 and under, save that 10
per cent of all may be larger II the result
will be TO turn a less share in for taxes
and public dues IL will also tend 20 supply
the popular demand for small notes. In
| Guiding gold coin, or which none is larger
| than so, the share of the currency above
| that denomination is $685.. 2760S5, or 1852 per
cent of the total and the growth is decid-
| edly along the line Of the small pieces.
NATIONAL BANK NOTES.
THE notes of national banks consti-
tute 1871 per cent. OF our circulation, and
stand on distinct footing. They are by
law redeemable in lawful money. The
banks, however, often prefer silver GER
tificates of small denominations, and ask
| for more than the treasury can give them.
The balance is paid by check on a SUBJ
treasury and commands gold. In the last
analysis the bank note is equal to the form
of lawful money in which it is redeemed.
The redemptions during the past fiscal
rla.ara
| transfer checks, SIS. 433, 009; in government
| paper, S55,ST,9S3 and i'm silver coin, s7s,30l.
| The transfer checks would always COM
| mand gold If desired.
| "Of 35l national banks actually ORGANIZED
| under the new financial law. 25l have a
| capital less than $4,000, and the ponds de-
posted for circulation for all are s5.SS5.-
| zoo They add, however, very mucn more 10
| the greater currency; for the checks
drawn on each new institution. and The
| exchanges with other banks. will be vast
| ~ more numerous and greater in total than
| its own notes. and will be repeated day by
| day. The new financial law restricts 50
notes TO one-third OF the circulation OF any
| bank. A reduction has followed in them
| OF Sc. ,S2S. and their place has been filled
| by silver certificates.
| "Our ten different kinds of money can
be placed in five classes: First gold with
| its certificates, 39143 per cent. of the whole,
| second. silver with its certificates and sub
| sidiary coin, TO which treasury notes are
| gradually added. 29.9S2 per cent: third.
4
whole; fourth, national bank notes. l5-I
| per cent; and fifth, minor coin.
1.-The demand by national banks for sill
yer certificates in redemption of their notes.
| is evidence that sometimes paper Of that
| sort is preferred TO anything else be-
| cause 1t Is so divided into small sums. Ii
| is, however, the limit of their volume ia
both United States notes and silver GER
| tificates that saves them from deDrecIa-
ton, and helps very much to keep them on
| the plane of parity. The legal tcnder quality
1 9 m he'd ~ ho
| on the other that IL is receivable for
/ customs, taxes and all public dues
Neither class of certificates is legal tender.
| but their exchangeability into the coin
which they represent, makes them sought
| tor in preference even 20 the metal.
while on the Pacific coast it is in COM
| mon use, on the eastern slope strong preiu-
| dice exists against gold. The confession
| cannot be avoided that abras and light
weight are objections. They are urged in
1 Britain and Oh the continent of Europe as
| well as with u.s. They Offset the music of
1 the Jingle Of coin in the pocket which so
! delighted Senator Benton. that champion
| of hard money. They way does not seem
| easy to lead our people TO the actual use OF
/ gold coin in large degree, even If our cur
| rency would be strengthened by the
| process.
During the present season 50 per cent
Of the amount deposited in gold has, when
| requested, been conceded in United States
\ $40 notes, and TO the utmost extent of the
departments power small silver certih-
| Gates, with which it has been well supplied.
| have been paid out sometimes for
| change of gold. The legal restrictions on
| the volume of government paper other
| than gold certificates, of so much service
| otherwise, raise barriers here Subsidiary
| and minor coin are redeemed in lawful
| money. is not the habit anywhere else,
| and gold is paid whenever asked for.
| THE REDEEMABLE PAPER.
1.-THE keystone to parity I'm our currency
| is the United States notes. With them the
treasury notes are classed as legal tenders
| and redeemable in coin. BY the new law
the latter are to give place 10 silver certih-
| Gates. AS they thus disappear. only the
United States notes will be claim against
| the gold reserve. Certificates will COM
mand silver or gold. according to their
| terms. The gold reserve is As per cent. OF
| the United States notes in circulation. and.
| counting the gold in the general fund, the
| treasury holds against them 81 "a per cent.
| in the yellow metal. As the latter Is
steadily growing. while the volume OF the
| former remains fixed. the difference be-
| tween them diminishes and the United
] States note becomes more nearly a gold
| certificate, as it always commands the
| coin.
| .'The question has been much discussed
| whether the silver dollar should by law be
: made redeemable in gold. Last winter the
two houses of Congress were divided on
| the subject. The representatives were in
| clined to the policy, while the Senate re-
| fused TO approve it, Ii was urged that
| such redemption Is vital 10 the mafnte-
| nance of parity. The answer that
| standard dollars are sufficient unto them
| selves, and, as less than seventy-four mill
| lion are in circulation, they do not threat
| en- danger, especially as they are legal ten
| der Besides, the volume is restricted,
and. as certificates representing them are
| receivable for all public dues, they are
| kept well at par. Peril TO the reserve and
| the treasury has always come from the
deemable paper, while since the present
| limit was fixed by law the demand for all
| forms of silver has been natural and ade-
quate.
| This is so true that in recent years the
| treasury has not been asked TO give gold
| I'm any shape for silver silver certif-
| Gates, but frequent requests. often very
4 urgent, are presented for the cheaper metal
| and it's representatives I'm exchange for
| gold This has not been practicable in all
| cases because the full legal volume has
been afioat. IL silver should be reedem-
| able in gold should not gold be exchange
| able into silver? This is provided for SUBJ
4 sidiary coin. How can IL be allowed III the
| restriction is kept in force on the volume
| OF standard dollars? The friends of hard
money will have to decide whether the
| limit of amount is not as useful as re-
| compton would be, and whether the pos
| sible inflow of dollars might not involve
/ Inconvenience and mischief. II the redemD-
| ton of standard dollars Is found 10 be
| sential TO parity hesitation should APP
| pear in providing it. Perhaps also an in
| crease In the use OF silver would be pro-
Noted on a safe basis.
| 1.-The narify of our currency requires i'm