New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-02
A LESSON IN FINANCE.
PHILIPPINE CURRENCY.
Method of Putting SHUer Certificates
IN Circulation.
LrnoM - rRIBuxn BunEAu.l


Washington Aug IA novel lesson in hnance Is
on its way to the administrative officers Of the
Philippine civil government by mail Inc Fhilpphe
Government is to put into circulation SERIES "a
silver certificates secured by the new SILVER pesos
which are being coined for the archipelago Whhe
nothing difficult about doing this might De SEEM
when the officials of the government came race 70
face with the question they threw up their haIos
and wrote to the Insular Bureau OF the war Oe-
partrnent to find exactly how the Treasury Depart
rnent Of the United States handled its silver GER
tihcates. Judge Charles Z. Magoon, acting cmeE
OF the Insular Bureau thereupon took DAY Oh
and went to the Treasury Department, and IoLo"eu
a silver certificate from the time II emerged from
the Bureau of Engraving and Printing until It was
returned worn out. for cancellation ana destruc-
ton Judge AIagoon wrote this interesting story
down carefully. and suggested that it be used TO
govern the system OF bookkeeping Of the Philippine
Treasury handling the silver certificates
What Judge Magoon wrote follows;
The plan pursued by the Treasury Department
OF the United States is as follows; =, -. 1,,oa,,
The silver certificates are printed by the bureau
of Engraving and Printing They leave that bureau
nunersI. Thev are deiivered to the Treasury of
the United States in sheets eaeh containing IOua
ard hotties The Secretary Of the Treasury of the
Denominations and amounts delivered TO the Treas
urer. the entry thereof being made on the books
OF the bookkeeping division Of the Treasury ne he
Office Of the Treasurer, are counted, and then put
seal and numeraL They are again counted and
again counted and put through a machine which
separates the sheets into four bills and trims them
70 uniform size. The bills are again counted and
CAFES in each naPEaee sro15nd which is nut paper
amount in the package. Forty packages, or four
these bundles deposited in what is known as the
reserve vault where they remain until required for
While the certificates remain in the reserve vault
on the cash books of the Treasurer, and he is not
REQUIRED TO account for them as cash The Treas
n sci a
are recorded the number Of certificates and their
drawn from the reserve vault The certificates in
the reserve vault counted at the close Of each
administration, and upon change in the Office Of
LreaSureT. and at any other time when ordered by
From time to time the Treasurer withdraws such
amounts OF silver certificates from the reserve
their purchase. 1t is the practice Of the Treasurer
to 2y pay su GTe Sss g the the E6ed 81
since there is always in the Treasury silver coin
age, what Is known free sVer'-that is.
silver against which certificates have not been
avoid the annoyanoe and expense incident upon
requiring parties TO purchase the silver or present
Certificates taken from the vault
thereafter treated as cash. and must be accounted
Secretary OF the. Treasury The denominations and
al cunts taken from the reserve vault. and that
amopnt Is charged to his ACCOUNT on the books Of
Office Of the TreaSuTer II is deemed important
Of silver certificates which has passed into cash.
This is 9ccompshed by having prepared Special
book, ruled that each denomination is given
special column. When paid ont in silver or other
currency the cash received takes its place in the
Treasury When paid out in exchange for mutt
lated certificates, and the mutated currency is
destroyed, there is diminution Of the fund which
must be accounted for. The plan pursued in this
case Is as follows
The mutilated currency is counted and separated
according TO the denomination of the bills These
bills are then arranged into packages containing
hundred bills of like denomination. The pack
ages then passed through a machine which
punches two holes through each end of the bills.
They then passed through another machine.
which cuts the bills in two lengthwise. One half
the package is sent &c the Register and the other
TO the Secretary, where they counted and veri-
fed. The two parts then assembled and de-
ton certified 10 by committee Of five who super
wise the operation This certificate is forwarded
to the Treasurer. who thereupon fills out n written
statement and calls upon the Secretary of the
Treasury for a warrant in the amount Of the de-
stroyed currency. To this statement he attaches
certificate evidencing the destruction and forwards
the papers the auditor of the Treasury Depart
ment. The auditor verifes the account by
parison with the books of the bookkeeping divi-
sion Of the Office Of the Secretary of the Treasury,
approves the account and forwards the papers to
the bookkeeping division for entry the books.
The papers then returned to the Treasurer and
the warrant charged against his cash, and thereby
the account balanced.
Judge Magoon advises the Philippine officers that
this plan, perhaps in n somewhat simpler form,
can well be adopted for use in keeping account of
the silver certificates to be put in circulation
IN the archipelago