New-York tribune., 1906-03-24
MUST PAY FOR CHANGE
United States VIII Not Transport
OitUer Coin Free after March 81
tFrOm The Tribune Bureau ]


" ashlhston, March 23.-By order of Secretary
oH9" announcement made at the Treasury
Dep@F FIiheht yesterday that after this month the
Tree transportation Of silver coins will be dis
continued. In the language of the order "notica
Is hereby given that after the close of business
darch o. 1906, no more fractional silver COINS
OF standard silver dollars will be sent to the
appl'cah's iree OF charge for transportation from
lhe oHlces Of the Treasurer or of the several
Assistant Treasurers of the United States. All
regulations of this department on this subject
heretofore issued are hereby modified accord
ingly."
simple explanation of this order is given
at the department; the money appropriated by
congress for the transportation of the coins has
become exhausted. Congress was asked for an
additional appropriation of $4,000 to carry on
the work, but the legislators eliminated the
paragraph from the Urgent Deficiency bill, Sec
retary Shaw directed his subordinates to stop
the shipments whenever they believed the orig
inal appropriation would be exhausted
It is probably not a matter Of common lznowl-
edge that for some years the government has
been spending in round numbers S12OOOO annual
ly for the free transportation Of silver coins to
whatever banks or individuals made application
for them. Some years there has been a small
balance left, but within the last three or four
years there has been a deficiency. Last year and
this year the amount OF the deficiency was S1O,-
GOO, and until the present economical Appro-
priations Committee got hold Of the purse
strings the deficit has always been made up as
soon as the Secretary Of the Treasury asked
for it.
Treasury Department officials express them
selves as rather pleased than otherwise over
this attitude the part Of Congress. A high
official said to-day:
There is really no reason why the government
should pay the express charges on the transpor-
tation of silver coin to individuals nowadays.
Many years ago, when our monetary system was
young and the circulating medium small
and not well distributed, it was to the interest
OF the Treasury for the department to make eX-
traordlnary efforts to get the coins into the
hands Of the public far from the larger cities.
1t was a necessity then. Now it is only a con-
The first order issued granting free transporta-
Lation Tor silver to individuals was made by
Secretary William Window in 1881 under an
act Of Congress, approved March Of that year.
His circular placed the minimum limit of $500
on sums TO be transported without cost TO the
applicant. Under the rules of the department
to-day the minimum sum is $500, and will be
until the end Of the present month. after which
Ihose VINO want smaH CONS VIII nave 10 pay
express charges. We viii probably let them
have the money at the same express rate that
the government pays which is four-tenths OF
cent a mile for a thousand dollars. with min
imum rate of dollar. In other words. if the
Secretary Of the Treasury is desrous Of sending
a bag Of silver coin by rail to Alexandria. Va.
company would charge him dollar. small
bag could be sent to Baltimore or Philadelphia
for the same sum.
The free transportation of silver is of chief
benefit 10 the ranch owners, planters and miners
who live remote from the Sub-Treasuries. They
find II Of great help when they wish 10 pay OH
their hands, for all they have to do is to send
a draft on to New York or Washington TO the
department for the specified amount, and in due
time the bag containing the money is laid down
at their door without cent of charge 10 them
AS soon as the crops are moved and the hahdS
paid off the money gradually flows back INTO
the Sub Treasures from the banks, there to re-
main until the next man asks for CONSIGNMENT
rule, do not want paper money. 1hSy Hs W.
something that jingles and something, besides
that will not tear, OF buTn' or become sOlleu ny
grease and sweat.
once in a while we have been informed Of in
stances where certain banks have used the gov
errment's generosity in this free haulage OF
money to the detrnlent Of their business rivals.
For instance, two rival banks are striving TOT
business in a little city Ihey. or course, g na.e
the usual arrangements whereby each casneS
the others checks, and in course or time one OF
them outdistances its rival. The bank Whlch IS
getting the worst of the business deal and IS
obliged to make up in money the dlHerehce pc
tween it's own checks and the checks or the
other hits upon the plan OF paying TINS dlLeI- on 3
ence in standard silver dollars II sehoS 70 me
nearest Sub-Treasury and imports several thou-
sand silver dollars, and as fast as possible uI-
loads this bulk OF undesirable coin on lts rival
After a while the other bank gets more silver
dollars than il can use ana must pay out money
TO have It shipped back to washington Tor i the
government will not transport coin free in the
other direction. I remember an instance when
The government stepped in and stopped TINS
little piece Of spite work on the part Of one
hank by making the other bank a government
depository. The next time the splte1ul DahK
asked for shipment Of silver coins the depart
rnent referred the cashier to the other hSuJu-
ton for the hard money.
The mere fact that Congress has turned down
the deficiency appropriation asked for does not
nroye that It has decided to discontinue this
system altogether The chances are that lhe
next regular appropriation bill will carry the
usual $4,000 for transportation of coins. At
anv rate the Secretary has asked for the usual
amount in his estimates for the fiscal year
1906-0T.