New-York tribune., 1908-09-02
SILVER DOLLARS SHORT
Ability of Treasury to Supply Smaa
Bills About Exhausted.

The National City Bank in its monthly circular
esye that somewhat contrary TO expectations there
Is an early and strong demand on the Treasury for
small bills. particularly 81 silver certificates. ano
that the ability OF the department to supply the
latter is sbout exhausted. These certificates. 1t
points out he issued only against free silver
dollars held in the general fund or IL exchange for
silver certificates Treasury notes of 1890 of the
larger denominations. 1t continues:
The free silver has fallen from s4o43,ono at the
teginniag of August S765.oO0 ut the end of the
IS probably due in part TO the reVvlng retai trace
silver dollar is longer transported at the ex-
pense Of the government
The circular adds that taking into account the
express charges silver dollars, which average
81 for 81 oo0 II is apparent that the certificates
are likely henceforth to supplant in favor the
sctual coin. if not with the public which has been
accustomed TO the use % coin. at least with the
banks which are required to pay transportation
Charges. In regard to these charges for shipping
currency the circular says:
A curious and absurd condition of affairs has
grown out Of the legislative requirement passed at
the last session Of Congress which was intenoeo
tionai silver pieces by registered mail The appro-
pTiation Of $4,000 this year for the transportation
Of subsidiary silver coin is coupled with the pro
vision that at least one-half that sum-, or $4,000.
shall be used for the shipment of such coin ny
registered mail Former appropriations required
the transportation TO be made by registered man
or otherwise.
The words ''or otherwise gave the Treasury sum
cient latitude to ship by express ,o,
AS the expense by the latter rnetnoo was illuSii VI
cheaper practically all shipments were mace sy
express. In order comply with the new requiTe e.
ment that one-half the appropriation be expenoed
at all events under the registered mail pan tne
Treasury established regulation TO the effect that
Hence a an 0 shiPmets Jpn Of subediary coin July
this wear until a week ago were by registered
mail Il actually SO so $1,000 to make these
shipments. as against average of 81 per sISo, s
by express. OF course Sle 80 per $1,000 is palo py
the Treasury 70 the Postofce Depal -ment. ana lHe
government actually loses nothing The net result
Of the whole transaction is to exhaust one nan
the appropriation rapidly because of the high cost
Of shipping sil1 er by registered mail Now thet
the law been fully complied with parhs LIZ
obtain fractional silver by express IN sums OF ~
or more Of the axDense of the government. or by
registered mail. in of 500, also at te eApelLS
Of the government, hut at the rlSK OF Iile
depositors may request
While the Treasury is short Of standard silver
dollars there is no scarcity of subsidiary or frac
ttonal pieces the circular says there being IN tne
general fund at the close of the month above SZ .
ooo ooo ,n halves quarters and dimes, which are
supplied by the department substantially without
limit and st the expense Of the government II
declares that in the event that the pressure Tor
one dollar certificates should become as pronounced
es has been the demand for dollar silver pieces
tn preceding years might be had TO the sup
ply Of half dollars available, or the SITUATION
might be further relieved by banks sending to the
Treasury for redemption the large silver ceruncates
or Treasury notes which they may happen TO hold
Speaking Of national bank circulation. of which
only s. ESs6 500 retired during August, the cir
cuiar says that the retirement engagements Tor
future months are insignificant, and adds:
No better illustration of the rigid character of
the last months when, in the face OF a
large shrinkege in business, the volume OF bank
notes outstanding has remained practically at the
high level reached the result of Treasury oper-
etions during the panic