Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1902-08-21
A GRAND CROP YEAR.
Corn and Wheat Yiald Of 3 900, OOO,-
900 Bushels - Treasury Hurrying
Notes to Pay.the Freight.

With the prospect that more than 1000 =
900 600 bushels of corn and wheat will have
to be moved to market this fall the trea-
s,fry officials are seriously considering the
situation in regard to the circulating me
diun that will be required for the UNDER
taking. 1t is apparent from the figures
published by the agricultural department
yesterday that the corn and wheat crops
alone will exceed by nearly 1850 900 .001
bushels the crop Of last year The crop
Of other grains is also phenomenally large
Secretary Shaw said that the treasury
was making preparations to meet the de-
nand for small notes, such as will be call
ed for in the western banking centres to
meet the expenses of the crop-moving
period. United States Treasurer Roberts
said that the treasury was never better
equipped TO meet these demands than
now, and that the outlook vas most en-
couraging, with no sign of distressing
strlngcncy in the money market
Two years ago when the corn crop was
very large the crop moving season was
a period of great strinEency in the money
centres. Last year, on account of The sew
ere midsummer drought, the corn crop
was light, and the season of moving crops
passed without any severe tax upon the
country's circulating medium. Now the
prospect is that the corn crop will he a
record breaker, while the wheat crop IS
certainly above the average. The treasury
Is better prepared to meet the situation
however and the prospect is that the
money strngency will be much less severe
than in 1900.
The separations for this crop-moving
season have been going on for nearly a
year. In anticipation of large crops thu
treasury has had large number of
notes of small denomination printed. and
the increased output from the bureau Of
engraving and printing has gone on 50
steadily that tie total volume of paper
money on hand Is now s59l. $50. 600 as
against S526.29G,o00 The number of separ-
ate pieces OF paper money on June 30, 1902
was l56.I2l 900, as against Sill, coo a year
ago; So the increase is seen to be largely in
notes of small denominations.
Shipments Of paper currency of small
denominations are now being made from
the treasury to Chicago and other money
centres in the West adjacent to the CROP
shipments of this kind have amounted to
areas. During this calendar year the
So.Sit, 0OU, as against $500 900 the year be
fore.
The volume of circulation throughout the
country has increased during the last
year by large amount. On the first of
last July the total circulation was s.
260, '50,2ie. or nearly 5000 600 900 more than
it was at the end OF the fiscal year 1901
There is slightly unfavorable sign how
ever in the fact that the total circulation
declined during the last two months by
about $6Wl,O0o This Is regarded as only
drop in the bucket, when the great vol
une of the countrys paper currency is
considered. 1t was thought at one time
that the withdrawal Of circulation by the
national banks would have an adverse eff
feet on the money market during crop
moving season. There were Withdrawals
in the last fiscal year of more than 500
1000, the cause being as the secretary
of the treasury believed the advanced
price of government bonds which made 1t
more profitable for the banks to with
draw their bonds from the trea sury than
to keep them there as security for their
own circulating notes Within the last
few months, however, there has been a
great increase in national bank circulation
secured by lawful money In the treasury
The net increase in national bank notes
has, in fact, Kept pace with the increased
volume of the general currency. Last
week national banks withdrew from the
treasury $3.50 600 worth of bonds. but there
were deposited In the treasury In the same
week Sl.l4S. $50 to secure circulation The
amount of bonds held by the treasury for
the security of bank circulation on the
IS0th Of June last was 1917 ,0SS.iS0 as
against SIG, l19, $40 a year before; but much
of the circulation for bonds withdrawn
during that period is still outstanding
against the cash paid In to the treasury.
incidentally, this fact is cited as showing
that Secretary ShawS action In suspend
ing the bond purchases inaugurated by his
predecessor has not had the bad effect on
national bank circulation that some cri-
tics have said il had