Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-03-23
DEMAND FOR SMALL NOTES
CALLS BY THE NEW YORK AND
PHILADELPHIA BANKS.
New Record at the Treasury for the
Accumulation of Gold-Polfcy
of the Department.

Inc demand 1Or Smau notes winch Is
being felt by the United States treasury is
unusual at this season of the year. and is
causing some apprehension as to the pres
sure during the crop-moving season In the
summer and autumn. The banks OF Phila-
delphia and New York have been calling
very largely for United States notes and
silver certificates of small denominations,
which have been paid for In larger notes
or in gold certificates. Treasurer Roberts
has been compelled to use considerable
foresight in the forms of money paid out
and to strengthen. rs far as possible, his
equipment of United States notes and sill
yer certificates. He has been endeavoring
to build up fund of $4,000, 900 in free
silver dollars, against Which there should
be no certificates outstanding. This would
be considerably larger fund than was
available year ago. hut the reserve of
United States notes Is considerably less
than at that time. rhe combined fund of
silver dollars and silver certificates in the
treasury at the close OF March, 1900. was
about $9.O0O.OOO, and the fund OF United
States notes barely more than S10.o00.000.
The former fund now amounts to about
SIS. 100000. but the latter has lost more
than S2,000,OOO. There has been a net gain,
therefore, in the reserves of these forms of
money Of nearly S6,o0oO0o.
The Silver Certificates.
usually considered an important reserve re-
source, because they consist for the most
part of small amounts in the current cash
of the SubtreasurieS ana are not available
for cancellation and the issue of new GER
tificates for other forms of money. There
is little restriction at the treasury upon the
power to convert notes of large denomina-
lions into notes of the same class of small
er denominations, but trouble sometimes
occurs when silver certificates or United
q oS Slxa1 in
gold Under existing law the only form of
money which can be issued without limit
Is gold certificates. The policy pursued by
the treasury is to issue gold certificates in
all cases where notes Tor $50 or higher de-
nominations are acceptable. This policy
has resulted in swelling the issues of GER
tificates for $40 from S54 077 .524 on March
81. 1900, to S76.316,U4 on February %.
1901. The increase in total issues of gold
certificates during this period was from
S210. 1910 to S276, 3i0, $50, but a large
part of the increase was absorbed in GER
tifcates for 5000 and $4,000, which have
taken the place of the old currency certffi-
Gates in the reserves of national banks.
The United States notes have been put Is
far as possible into denominations Of $40,
and the silver certificates In the meantime
have been SO rapidly converted into de-
nominations Of IS or less that the require
ment of the new law limiting the percent
age above IS has been nearly met.
Record for Gold on Hand.
a new record has been made at the
treasury in the accumulation Of gold. The
combined funds in the custody OF Treas
urer Roberts have risen to total Of S494,
061, 450-an amount never before accumu-
lated under one control in the western
hemisphere The gold actually credited to
the treasury In this amount was s243, $50
351, leaving little more than S250. 900 600
in outstanding gold certificates. The treas
ury gold is divided into two parasitic sum
for the redemption of the legal tender
notes and the remainder Of 500, 2.y0, 351 in
the current cash. The issue of gold certifi-
Gates goes on almost daily, and they are
paid out for many public dues. but the net
amount outstanding has been slightly re-
duced during the present month by the can
collation. of those received into the treas
ury for taxes. Treasurer Roberts is hopeful
that the total gold in his custody will rise
within few weeks to $5O0.OO0.00O If no
serious change occurs in monetary and
commercial conditions. purchase Of
bonds by the government would tend TO
reduce this accumulation somewhat, be-
cause it would require an outflow Of money
from the treasury in excess of what is re-
ceiVed. Under present conditions the in
flow exceeds the outflow, and has afforded
surplus during March of 81, 13s, 397. The
general cash balance has risen considera-
bly, during the month and stood today at
1852 O59. $50. A material reduction of the
gold funds in the treasury might occur
without impairing its strength, since the
gold held, exclusive of that pledged for
certificates, Is more than 60 per cent above
the requirements Of the gold standard law.
The policy recommended by Treasurer
Roberts and adopted by Secretary Gage of
Immediately exchanging notes redeemed
In gold by the redemption department for
free gold in the general funds has resulted
In keeping the gold reserve fund unim-
paired from the adoption Of the gold stand
ard law at the even amount OF $50 600, 600.