The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-28

TON HERALD, SUNDAY, AU
are found to be unfit because Of wear
and tear and other reasons.
rs it true that the size Of all the paper
money is TO be changed?'
We are considering the matter now
The size OF our notes. in my Judgment,
is too large. committee, OF which I
am chairman. is studying the subject
very carefully, Our notes are ~ inches
long and inches wide. would make
them inches long and 2sk inches wide
The saving in paper and labor would
amount TO 10000 q year. Besides.
smaller notes would be more convenient
The tills OF merchants would not have
to be changed. nor would the pocket
books now in use among the people
There might be some complaints at first,
especially among banks, because Of the
difference in size between the new and
old note but it would only be tenn
porary
Change Not Difficult.
Il would print an immense stock Of
new notes against the day when the
change was to be made with such a
provision the old notes would soon dis
appear from circulation. Everybody
would want the new money. inasmuch
as it would be clean. novel. artistic, and
convenient The paper currency Of Eng
land is even Of a larger size than our
own, and a note returning TO the Bank
OF England is never reissued. but a new
one is put out in its place. However. the
money OF the people is coin, the lowest
denomination in paper being q Is note.
or So in our currency. In the United
States paper money is very largely used
in the common transactions Of the people,
and It ought TO be in form that is the
easiest to count and handle"
do you believe that the increased sup
ply Of gold is the principal cause of the
dear prices for food. clothing. and other
commodities2"
Tt is a big factor. possibly the greatest
factor in causing the upward trend n
values. Living is not only dear in this
country, but It is dear the world over"
If there should be a financial panic n
one Of the cities having a subtreasury
could the government help the local
banks?"
1T could. and it sometimes does helT
the local banks. There are subtreasuries
in Boston. New York. Philadelphia, Bal
timore. Cincinnati. Chicago. st. Louis
New Orleans. and san Francisco. The
government acting through its subtreas-
uries, can increase It's deposits with tho
national banks in any OF the cities
named A telegraphic order from Wash
ington 10 subtreasury could cause The
transfer OF government funds from ths
subtreasury to the banks Moreover. II
large ba.ilI in the interior were in trou-
bic. bank in New York, for instance
could send its help by telegraph through
the New York subtreasury, on depositlne
funds for that purpose"
Has Emergency Currency.
The government has q large amount
OF emergency currency stored away 70
be used in the event Of a scarcity Of
money in the country"
Under a law that is to be operative
for six years, 100000 Of emergency
currency has been printed 10 meet pos
sible periods Of stringency in the money
market. The currency can only be OBJ
tained, however. by the national banks Of
a city working jointly as an association
thus making each bank responsible sepa-
rately and by depositing commercial
paper-Otherwise the promissoyy notes o.
firms and corpOrations-that is accent.
able 10 the government. When the need
Of the currency Is over. 1t can be re.
turned 10 the government. whereupon the
commercial paper will be given back tc
the banks by which It was pledged in the
first place"
You are 20 be treasurer Of the new
postal savings banks?'
Yes. Plans are being worked out for
the establishment OF the banks. In my
opinion. the time is coming when cry
post-office in tho United States will re-
celve deposits OF money from the people
and pay interest on the same at the rate
OF per cent There are said TO be s..
VVV,VV Americans without banking con-
nections Doubtless an immense sum o.
money is being boarded and kept from
circulation. Post-ofice banks viii draw
a great part Of II out into the open. No
man is afraid OF the government.
furthermore, going TO bank with some
persons is a ceremonious undertaking. re-
curing ones best clothing, fresh shave,
and look OF awe and submission on
the other hand. the post-offiee is dem
ocratic institution. which one may visit
without fear or trembling. and in his
shirt sleeves, If the day is too hot FOR
a coat. II seems 10 inc that our postal
scheme OF banking is bound 10 be 4
tremendous success"
Copyright. 1910. By Itmes B. Morru4.)