New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-22
RELIEF FOR BANKERS.
B'H Intended to End Paper Money
Famine Passed By House.
LFron The Tribune Bureau. !

Washington, May 21.-An important piece Of
currency legislation to meet the famine in paper
money OF small denominations, of which there has
Oeeh much complaint from bankers throughout the
country. and especially from banks in New York
having TO supply large payroIs, was passed by the
House to-day The bill amends two sections OF
the Currency act Of March IA, 19OO authorizes the
Secretary OF the Treasury issue gold certificates
in denominations Of less than So instead of not
less than $50, as now provided by law and also
gives to national banks the authority to place in
circulation such portion Of their notes in the de-
nomination Of IS as the Secretary OF the Treasury
may from time TO time authorize by regulation in
stead OF being limited in their right to issue So
notes to one-third Of the issue, as now provided
by law. The bill passed without debate under a
suspension Of the rules the measure having been
unanimously reported by the Committee on Bank
ing and Currency. Secretary Shaw and United
States Treasurer Treat strongly urged the Iegis-
lation-
Mr.. Treat has had a difficult time to satisfy the
daily increasing and almost imperative demands
from bankers for a supply Of 81 and 81 bills. He
has advised them that it impossible to issue
them unless he had silver dollars TO put in their
places and there not a sufficient quantity OF
silver certificates Of largo denominations in for
exchange for smaller ones, he has been unable to
this need This condition has been particular
" trying TO business interests having large pay
rolls. Last week MI Treat received an urgent letter
from the paymaster Of New York City asking If
means could not be devised to obtain relief
tiOnal City Bank.
The Treasury will be short some fourteen million
silver dollars as compared with the corresponding
period last year, and the appropriation for free
transportation OF silver dollars has been cut of.
there is only about one-f1fth Of the movement Of
silver dollars. compared with the corresponding
period of year ago. The Southern bankers have
served notice the Treasurer that they win re-
quire millions OF SIS and Sos, they do not pro-
pose to pay the expressage CON- which is much
greater than currency. Mr.. Treat said to-day.
This bill is of great practical Importance to the
business men Of the country, tnasnuch as its pro-
visions intended facilitate the adequate sup
ply Of bills of small denominations SIS. SIS and $5s
by retiring larger denominations Of silver certih-
Gates and substituting small denomna tons there
for. which only be done in quantity by issuing
gold certificates and retiring adequate amount
Of silver certificates, thereby releasing an equal
amount Of silver dollars, which be utilized to
issue silver certificates of small denominations.
There has been a great famine in small bills ever
since November 1905, and for over two months the
Treasury unable to furnish any Of the denomi-
yer certificates in abundance to exchange for the
smaller SIS and SIS, and there way that the
law permitted the issuing Of any silver certificates
unless silver dollars deposited in the Treasury
for the same amount. This fact generally
overlooked by the banking community of the cOun-
try and they expressed much surprise when they
found that they could not get silver certificates In
SIS SIS and SIS by presenting gold or gold certih-
Gates therefor. the law was mandatory.