East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-08-28

A New York national bank last
week applied to the treasury for $780,
600 in 81 and 50 certificates and Of
fered in exchange three $4,000 gold
certificates. says the Kansas City Star.
The bank did not get the small notes
because the treasury did not have
them to spare. All demands for small
bills in excess of 400 or 500 lots are
being refused.
\ curious situation confronts the
government. Within the next few
months the treasury will be unable to
add to the volume of ST. 50 and S5
certificates. and money famine OF
more or less serious consequence will
follow. Secretary Shaw will be una
bic to furnish relief until congress
enacts a law. authorizing him to issue
more silver certificates of small de-
nominations or providing some other
means of increasing the volume Of
circulating money.
When the crop movement gets un-
der full swing the pinch will be felt
The treasury now holds s6,O44,965 in
silver dollars, which represents the
amount available for increasing the
present volume of 81, 50 and IS bills
in circulation. As is well known, the
bulk of the nations business-that is,
the daily transactions-is done with
81, 50 and s. notes.
Silver Dollar for Each Paper Dollar.
These are known as silver certifi-
Gates and for each paper dollar so is
sued the secretary of the treasury
must set aside silver dollar I'm the
vaults of the department as guar
it should be called in. Congress linn
tied the amount Of silver that should
be purchased for tire coinage of these
dollars and for many years the treas
ury has not purchased an ounce Of
the metal to add to the stock of
money.
The treasury has coined something
like 4SS million silver dollars. In sup
plying the demands of the banks and
business houses all over the country,
the treasury has from time to time is
sued silver certificates aggregating
Az million dollars, and for each dol
lar so issued, the secretary has sep
arated a silver dollar from the reserve
store of cart wheels" in the vaults.
He has now left only a trifle more
than six million of the silver dollars,
and as no more can be coined after
they are gone. he is boarding them
with the greatest care.
Shaw VIII Can So Notes.
Secretary Shaw was asked what he
would do when the last of his re-
serve had been dissipated. He re-
piled that he would then endeavor to
have the holders of s. certificates
send them to Washington for re-
demption For each S. hote thus
presented he will have five 81 notes
struck off, thereby adding to the
number OF notes without increasing
the total amount outstanding.
Recently a Washington banker sent
a messenger to the cashier at the
treasury department with a request
for $500 worth of dimes. The mes
senger was sent back without a single
dime, but he was told that next week
he could get few. This shows how
nearly bankrupt the government is ir
fractional currency also.
To supply the demands on the nine
subtreasuries and the four mints tn,
government has only a trifle' NOR,
than five million dollars worth o
dimes, quarters and halves. Thii
stock will not last long. but before thu
| business interests of the country suf
fer relief will be at hand.
Can Coin Small Coins.
Secretary Shaw has been advised b.
Attorney General Moody, that, whil
the law prohibits the purchase of sill
yer bullion for the coinage Of silve
dollars, 1t sanctions the buying of thi
metal for the coinage of subsidiar
currency. So Mr.. Shaw has given no
tice that the department Is prepare,
to bid for silver bullion.
In the meantime the scant suppl
Of dimes, quarters and halves is bein
nursed carefully. Only small draft
OF this character of money Is bein
honored. It is stated that most of tn
five million dollars is made up o
quarters and halves, and that there
now almost famine in dimes.
Tn this state II Is not necessary I