The times. [volume] (Washington [D.C.]) 1897-1901, 1900-05-14
DILEMMA OF 4HE BANKS
Effect of Currency Act on Bureau
of Engraving and Printing.
Millions of Dollars Tied Up Ow-
ing to the Scarcity of WOrlImcn
Capable of Cutting New Plates Re
auircd-Trensury Department Pow
crless to Overcome the Difficulty.

Over one thousand banks will have to
be supplied with new currency plates as
an effect of the new Currency act of March
IA. and it will be from four to six months
before all can get the money to be printed
from the new plates.
There is now about s15.000.00O due to
the banks in currency tied up because it
cannot be printed until new plates are
made.
The regular force of engravers at the
Bureau of Engraving and Printing and
all of the additional engravers Assistant
Secretary Vanderlip has been able to hire
are at work twelve hours day engraving
these plates. as well as the plates for the
fifteen different styles and denominations
of new per cent bonds. The best that
the Bureau is able to do is to furnish fifty
plates weekly Before Assistant Secre-
tary Vanderlip took up the matter at the
Bureau, on the resignation of Director
Johnson, only twenty-five plates weekly
were being delivered. Even at this rate
it will be from four to six months before
all the banks that have bonds on deposit,
and TO which additional currency is due.
will get their money. These banks are
beginning to see what this delay will
mean to them and are becoming anxious.
There will be no relief. as the engraving
division is being crowded to its utmost
capacity.
Engravers cannot work more than twelve
hours day On account Of the light. The
Department cannot get engravers TO leave
good jobs to take work that will last only
a comparatively short time Nor are there
many engravers in the country who can 40
the sort of work required by the Govern
ment in making the plates for its cur
rency.
When the new Currency act Of March IA
last went into effect there were 926 banks
in the country which had bonds on deposit
in the Treasury. Since that time over
100 banks have been established under the
new act, and ir many instances all OF their
capital is invested In Government bones.
These banks are the greatest sufferers
from the delay caused in engraving the new
plates.
The 926 banks having bonds on deposit.
and having the right to circulate national
currency to the limit of their deposits of
bonds. had. up to March IA. only S. plates.
Each bank has to have plates OF its own.
The new act limits the issues Of fives to
one-third the circulation of any bank OF
national bank notes. so the engraving of
these fives had TO stop Immediately. Then
the process Of taking up these flves, down
to one-third Of each banks circulation, be-
gan, and in their place the substitution OF
tens and twenties is to be made. But until
the plates for these tens and twenties are
engraved the process only goes half way
Withdrawing the fives. but no issuing Of
tens and twenties.
There are three styles of plates that the
engraving division makes. One with four
five-dollar notes on sheet, another with
three tens and one twenty and third is
half-sheet engraving. one fifty and one
one hundred The banks do not like the
latter large denominations. and only the
new banks need the first, SO the most Lop-
ular plate and the one most in demand is
what is called the "ten-twenty."
Another provision OF the currency act |
requires that silver certificates of denomi- |
nations above $40 shall be Cancelled and
certificates of $40 or under shall be issued |
to take their place. The object and result |
of the provisions Of the act limiting the
circulation Of s. national bank notes to
one third its former volume, substituting |
larger notes of the same kind. OF $40 or |
over and at the same time canceling all
gtituting smaller denominations. is to fur
nish the country with small silver certifi-
Gates Of ten dollars or under with which |
to transact business. The bulk II the |
business of the country Is transacted in |
money of denominations under $40.
The effect of bringing all these changes |
about falls, naturally. with all its force |
upon the Treasury Department, and partic |
ularly upon the Bureau of Engraving and |
Printing and the issue division of the |
Treasury. The issue division is receiving |
from the bureau 10000 sheets of small sill |
yer certificates daily now. where ordinarily |
only about 10 eco sheets have daily in the |
past supplied the demand Between the |
rush Of printing the new national bank |
notes and the demand for small silver GER |
tiicates, the Bureau of Engraving and |
Printing has been more busy than any time |
in recent years If not in its history.
A week or so ago the number OF sheets |
of silver certificates delivered to the issue |
division of the Treasury fell one day to
3. .00O This caused the head of the divis- |
ion to call Assistant Secretary Vanderlip's |
attention to the falling off in the supply. |
and the limit of 40CO0 daily was reached
the past week. Saturday, however, only
IS Geo sheets were received.
When the banks come to realize what an
1t is for the Treasury Depart
ment to carry out the provisions Of the
new act in all their effects from the nat
ural delay caused in this changing of the
form of currency. II Is believed that they
will be more patient In waiting They will
have to be. for 1t is physically an i'm
possibility for the Treasury Department to
do the work more rapidly.
It would be impracticable to psrma-
nently increase the engraving force to dou-
BILE or triple its normal strength. The
United States Government has not the
power to get engravers Of the necessary
skill TO work for it. Hence the delay and
to. the banks. and a conse-
quent loss in interest on money they can
not get Mt present.