Evening star., 1900-09-19
THE NEW MONEY LAW
Experience of Six Months of Its
Existence.
INCREASE In TEE GOVERNMENT GOLD
Over $330,0o0,00o in Old Bonds
Refunded.
GREATER BANK CIRCULATION

The lanse of six months since the gold
standard law WAS enacted made the state
of the treasury accounts today a subject of
special interest to Acting Secretary Van
derlip aud his associates. The gold stand
ard features of the law practically en-
forced themselves after Treasurer Roberts.
by authority Of Secretary Gage. set aside
the required gold reserve OF s13O,O00.OO0 and
deducted the amount from the general cash
balance. The redempJfOnS OF notes in gold
since the act took effect have been S25.
6n9.452. but the bulk of the demand has
come from jewellers, who have obtained
their gold by the exchange of notes since
Congress put a charge upon the delivery
of gold bars. The treasury had on hand
at the claSe of business Saturday sT3.69i,
ga in gold coin and bullion. besides the
gold reserve. making a total fund of S22i,-
tH,6J4- The amount Is about s21.uO.oOn
less than March II last. but the differ
cree is d"e largely tn heavy payments by
the treasury i'm the form of gold certiti
cafes and the desire To keep the money in
the hands Of the people The total gold
held by the treasury. both for the govern
merit and for the owners of god certifi-
Gates. is about slS.GAG,QO0 more than when
the law took effect. The amount at that
time SII62i fS9; The amount today is
S4:94 s';2 S5,
RefHndinG fhc Bonds.
The portions Of the law which have
caused the greatest change in the treasury
statements have been those relating Ia the
refunding of the debt and the national
ba anking law The total exchanges of old
bonds for The new , per cents authorized
by the law have beer 1892 l4S6O. The
classification of those exchanged up to Sat
uriny shows that the per cents excha.nS-
ed have been by far the most nu-
merous. amounting 10 S!02, ,6.9.!N0. The net
premiums paid by the treasury have been
$}3 Dsi, ,i67.
The new bonds have been awaited of al
most entirely ny the national banks as se-
curity for circulat ton. and the banks have
found them profitable that their circu-
latiOn has beeu increased about sS0.Ns1.0D
since the beginning of the present year.
The new per cents pledged for cirrUa-
tion stand a S26ii,6 i,614, 100 and those pledged
tn secure deposits of public money in the
banks at $Ai224 700. This ahsOrbs more
than SHb6, ,SsI0.0O0 OF the new bonds and
leaves hut little more than $25,Oo0,O00 in
private hands In process Of transfer.
The national banks have increased their
bond deposits Oi ali CLASSES from S2.;4 4S4-
$40 January T. 1900, 10 S!.s6. 119. .l3O at
the present time
Increase of Bank Circulation.
The to.a! bank note circulation at the
beginning of the year was S2I6. 19j. .;,o3. The
increase of $50, 0O.0N has been derived to
the amount OF about ST., oG0 900 from adii-
tionai deposits OF bonds. and so3 900 on0 by
the increase of circulation to par upon
the old bonds. offset by delay in the issue
ot notes 10 The amount of about si Gin NB
The circulation to which the banks are
now entitled is close to $50 900 600. and
this circu!ati lion will be attained within
few weeks The delay thus far has hccn
due to the inability to prepare plates for ali
the rev banks which have entered the ma
tGnal system. The requirement OF the new
law that every national bank reduce its
Proportion 1f notes for 81 To one-t third az
Its circulation has brought 500 orders for
plates from old banks since March L.
Most of the old banks got their orders
ahead of the new banks because OF the Ge-
lay in complying with all necessary for
malities. but the new banks have already
hled orders for 3S9 plates. Orders from
the old banks to the number of 902 have
now beeH fifed and orders from lie
banks to the number of 23J. The bureau of
engraving and printing Is catching up rap
idly with the work and Is not now much
further behind than the time usually re-
quired after receiving an order for the
making OF the plate and the printing and
drying of the notes. The bureau has been
catching up rapidly with the orders since
Acting Secretary Yanderlip increased the
force of skilled engraFers. and will soon be
running upon steady basis.
Excbang. of Nutured Two Per Cents.
call upon the national banks to sur
render deposits of public money where they
are secured only by the deposit in the
treasury of the matured per cent bonds
has been made by Acting Secretary Van
derip- Secretary Gage announced on May
Is that these bonds would he paid when
presented at any time after that date. ard
that interest upon them would cease with
IL three months II IL now nearly a month
since the interest ceased on August Is, and
hr Nanoeri'p feels that the banks have
had ample time and notice to obtain bonds
of other classes If they desire to retain the
public deposits. He will not give them any
definite period within which to substitute.
other bonds. but if the substitution does
not occur within few days he will direct
Them to pay into the nearest subtreasury
all 0i their deposits which not secured
by other classes OF bonds.
EHe per cents have been coming in very
slowly for redemption. and thus far only
SlsSf4.4 400 have been received out of S25.-
'fI,'"@ outstanding at tie time when Sec
Tetary Gage issued his cali. This leaves
about SG5tDpOo III the hands OF the public,
and II Is known that more than 81 900 zoo
uf these belong to the national banks The
amount pledged To secure public deposits
stands at s2.IfS.Jo0. of which 81 272 800 is
In the treasury la Washington and sSi6-
HD In the custody of Assistant Treasurer
Jordan at New York. Controller Dawes
has been taking measures to hasten the
surrender of the bonds pledged for circula-
tian, which are kept deposit by the
banks IN direct violation of law He is re-
1uslng TO issue notes to banks having the
old bonds ca deposit when their notes are
received for redemption. He will be able
by this means to gradually reduce the out
standing notes 10 the volume of the bonds
6f The proper classes on deposit, and the
banks viii find their circula lion consider
ably curtailed il they do not fake meas
ures tn find legal classes of bonds to sub
stitute for the extended per cents These
bonds pledged for circulation stand at So
Jif. 900
. =