The Washington times., 1902-08-13
Exceptional Eff rts Made
by the Treasury to Avert
Any Strlngency.
RECORD YEAR IN CORN BELT
Wheat and Other Crops Also Far Above
Average Big Government Deposits
Sent to Western Banks-Plenty of
Small Bills Ready.

The prospect OF moving to market
more than three billion bushels oi
corn and wheat this fall, not to men
tion other crops. which are phenomenal
ly large, has led the officials of the
Treasury to consider seriously the sit
uation in regard to the circulating
medium that will be required for this
gigantic undertaking. II was made ap-
parent TO them by the figures published
by the Agricultural Department Monday
that the combined wheat and corn
crops alone will exceed by nearly a
billion bushels the crop of last year.
Secretary Shaw said yesterday that
the Treasury was making preparations
to meet the demand from western bank
ing centers for notes of small denomi-
nations to cover the expenses OF the
c op-moving period. United States Treas
urer Roberts said that the Treasury
was never sc well equipped to iIaet
these demands as now. and that the out
of distressing stringency in the money
market.
Stringency of Two Years Ago.
Two years ago, when the corn crop was
very large. the crop moving season was
a period of great stringency in the
money centers. and II was seen then that
measures must be devised to avert
repetition of such conditions. Last
year, on account of the severe mid-sum-
mer droughts, the corn crop was light,
and the season of moving crops passed
without any severe tax upon the coun-
try's circulating medium. Now the pros
pect is that the corn crop will be a rec
ord breaker, while the wheat crop is GER
tainly above the average. The Treasury
is better prepared to meet the situation,
however, and the prospect is that the
money stringency will be much less
severe than 1t was two years ago.
The Treasury preparations have been
going on for nearly year. A vast num-
ber OF notes OF small denominations have
been printed and the increased output
from the Bureau of Engraving and Print
ing has gone on so steadily that the total
volume of paper currency on hand is now
s591. $50 900. as against s526. .296,000.
Millions of Small Bills Ready.
The number of separate pieces Of
paper money on June 30, 1902. was 1885,
721 eco. as against 81, III 900 year ago;
so the increase. it will be seen, is large
y in notes OF small denominations. The
Increase represents. in large proportion.
notes of 500 and under, e large number
If fves and tens having been printed.
Shipments of paper currency OF small
are now being made from
he Treasury to Chicago and other money /!
,enters Of the West. adjacent to the |
,rop areas. During this calendar year
he shipments of this kind have amount |
ID to s5,S45 900, as against 50 800. 900 in |
he same period of last year.
Circulation Volume Increased.
The volume of circulation throughout |
he country has increased during the last |
rear by large amount. On July l, 1902. |
he total circulation was $3.50. $50, PAP, |
IT nearly $500. 600, COO more than 1t was |
It the end OF the fiscal year of 1901. I
There is a slightly favorable sign, how
.ver. in the fact that the total circula-
ion declined during the last two months
" about s6.C00,000, though this is re-
,arded as only drop in the bucket.
II was thought at one time that the
withdrawal CT circulation by the national
'anks would have an adverse effect on
he money market during the crop NOV
ng period. There were Withdrawals
uring, the last fiscal year amounting to
more than 500 coo 000 the cause heine |
s the Secretary OF the Treasury be
ieved, the advanced price of Govern
nent bonds. which made it more profit
BILE for the banks to withdraw their
,onds from the Treasury than to keep
hem there as security fer their own
CIRCULATING notes.
Within the last few months, however.
here has been a great increase in the
ational bank circulation secured b.
awful money in the Treasury. The net