Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-19
TURNING OUT MONEY
ENGRAVING BUREAU PRESSES
RUN AT TOP SPEED.
National Bank Circulation Greater
Than Ever Before in History
Process of Refunding.

The bureau of engraving and printing Is
turning out national bank notes as fast as
an increased force and extra work Will per-
NIT. 1t takes about twenty-five days to
prepare new money for the banks SO that
it will be properly seasoned to go into the
hands of the patrons of the banks. The
banks have orders ahead for many millions,
and the circulation is being delivered to the
controller at the rate of many thousands
day. From the controllers office it is ship
ped right out to the banks upon the deposit
of bonds covering the amount to be Ship
ped.
The circulation of national banks of the
United States has passed the $400 900 600
mark, the largest amount in the history or
national banks. The banks are still putting
| more money in circulation to prevent any
scarcity in the money supply late TINS sum
mer or early in the fall. The amount OF
circulation outstanding yesterday afternoon
was $400, ,031, 705. December 81 last the cir
culatiOn Of the banks stood at 1854 ,929 7S4,
and this was considered about the highest
figure that would be reached before next
fall.
How Circulation Was Increased.
To encourage the increase of circulation
during the stringent money conditions last
fall Secretary Shaw resorted to number
Of expedients. By these he succeeded in
ber 81 the circulation decreased to 1881, ,845.
343, which point was reached March 25. 1t
was at this time that Secretary Shaw an
nounced that he would refund and per
cent bonds into per cents.
This action of the Secretary put stop to
further reduction of circulation on the part
of the national banks and from that day to
this the increase has been rapid. There Will
will continue to be an increase, but 1t Will
not be at so rapid pace as between March
mer months there may be some withdrawal
of circulation, but to no considerable
amount.
The Refunding Operations.
The refundng operations and the substt-
tuition of Philippine certificates for United
States bonds when the latter are imme-
diately deposited for circulation have both
aided in the increase of circulation. The
refunding operations have thrown large
amount of new per cent bonds in the way
of the banks at the best figure of recent
years, and the banks have promptly taken
these bonds and put them up for circula-
ton. The tax on circulation based upon
per cent bond is so much less than that
on other classes of bonds that banks are
using them almost to the exclusion of other
classes. OF the total amount of circula-
ton now outstanding about $5oo,UOOoO Is
secured by per cent bonds.
The refunding operations reached their
height about two weeks ago, after a phe-
nomenal run, and have since dwlndled to
small proportions each day. The total
amount of and per cent bonds refunded
to date has been just little over $4,000
coo, of which about $50, 100000 has been OF
per cents This sum is much beyond the
calcula tions of Secretary Shaw and other
Treasury officials when he announced his
willingness to exchange the bonds upon the
terms fixed by himself. Secretary Shaw
announced that he would make the eX-
change to the amount of $100,OO0,00O 1t is
somewhat doubtful now If this figure will
be reached, but Secretary Shaw will not
discontinue the operations for the present
OF the $3,OO0,O00 certificates that were
sold by the War Department nearly $1,000
COO is now on deposit with the treasurer OF
the United States as security for public de-
posits, and the other 81 100000 is expected
in the course of a week or ten days