Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-08-26
New Workers Expect No Money
Stringency This Fall.
TREASURER TREAT TALKS
South and West Making Little De.
mand for Cash.
THE SUPPLY OF SMALL BILLS
No Rush for Retirement of Circula.
tion-Looking for an Early Re-
sumption Of Business.

New York banks do not think there
will be any stringency I'm the money mar
kets this fall and winter" said Charles
H. Treat. United States treasurer to a Star
reporter today. They base their views on
the fact that southern and western banks
are not making great demands as
usual for the crop-moving period. now
close by. This il especially true Of southern
banks. 1t is their custom, as far ahead
each year Is July. to make arrangements
in the big financial centers for money for
the season of handling the crops. This
year, up to this time, their demands have
been much below usual.
This is not caused by any shortage Of
crops. but is attributed to the fact that
probably $10O. ZOO, 600 Of cotton, held from
last years crop. has been DISPOSED of in
the south I'm the last few months, giving
the banks a large supply Of cash on hand
IL Is estimated that from 500 600 600 to
S2ON0.OOO above the normal demands
Oh business is needed during the crop
season, and the fact that the southern
banks have come into a goodly supply
OF cash In the last few months lessons
the demand considerably"
HOW about the supply of small bills.
for which there is always such a great
Marked Change Over Past Years.
1t is an interesting fact that there
Is marked change in that feature of af-
fairs over past years. National banks
have been piling up bank notes of small
denominations. instead Of sending them
In Tor exchange as heretofore. The tax
upon the circulation Of banks secured by
per cent government bonds Is "a of 1
per cent. but where the circulation is
neid In the vaults there is no tax.
1T is evident that the banks loo,.
for an early resumption of business &C
tiV!tles and are holding their circula-
tion. both large and small bills. instead
OF retiring 1t. Notwithstanding the
prising that the 5000. 600, limit for re-
tirement Of circulation during any sin
gle month has not been reached at any
time since the passage of the law in
creasing the limit from 100000 each
month to 100000. Right in a period
when there were claims of business de-
preston and hard times 1t would be
supposed banks would scramble over each
other 10 retire circulation and escape the
tax or y per cent on money they had
10 use FOR and could not loan.
Retirement Of Circulation.
In June last the total retirement of
circulation by banks was only $685.. aS,:
in July the total was $5.729,577, and I'D
to August 10 the deposits for retirement
for this month reached only 81. 291. 434.
The Aldrich law has SO far shown that
1T imposes no restrictions upon the banks
IN the matter Of retirement. 1t is a
that there should be no limit upon re-
tirement and that the banks should be
free to retire as much and as often as
they desired. The law, as it has worked
SO 1ar; shows that the needs Of the banks
nave been fully met.
LAS to silver certificates and United
states notes of small denomination we
VIII shortly increase the daily supply
reaching us from the bureau Of engray-
ing and printing. Our daily supply from
the bureau for a long time has been
about $50 bundles Of sheets. each bundle
containing 1000 sheets and each sheet
containing four notes. About the 18th
of September we will increase the supply
an abundance Of small bills. We require
from $1.50o.O0 to 81 00o. 900 Of silver GER
tif1cates, United States notes and gold
certificates each day to meet the exchange
demands from banks and business gem
orally. In the national bank division
the redemption reaches an average of ST.
OOOOOO each day."
Outstanding Paper Bills.
Mr. Treat went on to say that in the
laSt lew years lie HAS STcAtly lNCTedSeQ
the supply Of small bills OF all classes
and denominations. This is shown by the
figures Of outstanding paper money Of all
kinds. July 81. 1905. the total of 81 bills
outstanding was $1O4, .956. while July
81, this year. the total was $115. 1854 .955: Of
So the supply two years ago was $40 629,-
OPS. while now 1t is $57, 6SS, 1872; Of SIS. the
total in 1906 was 1885. lie. 237, while now
it is $4s5. 7O2.6 17: Of Sos. $685., 1922 and
$6OS, 1885 1881. respectively.
A goodly part of the increase Of SIS
Is in national bank notes Secretary Cor
telyou last year appealed to the banks
to use a larger amount Of small bills.
and this many Of them did. since retain
ing this circulation for this fall and win
ter's business.
Treasurer Treat has written an article
on the guarantee Of national bank de-
posits. and it will be used. it is under
stood in the campaign book Of the repub-
licans this year. The article combats the
BRYAN view Of security Of deposits.
ROTHSCHILD MARRIAGES.