Belding banner. (Belding, Mich.) 1889-1918, 1912-06-06
MUCH MONEY
DISAPPEARS
Government Benefits by Disappearance Of
Paper Money.

What becomes of all the money
turned out by the great govern
ment money print mill at Wash
ington? At this mill 1000 persons
are on the pay roll and all mainly
engaged in turning out paper
representative of money, and the
wonder is what becomes of it all
Sooner or later much of it falls
into the hands of few men. such
as Carnegie, Rockefeller and Nor
gan, but it does not remain with
them long, for they turn it back
to the people for railroads, oil
lands or United States securities.
Much of it, howey er, disappears
and is never heard of more.
The government stands ready to
redeem il when it is presented,
but a great deal of it is never
presented. 1t is eaten up by rats,
destroyed by fire, rots away in
some secret hiding place, or
sinks beneath the waves of old
ocean and old ocean is famous for
never giving back what it claims.
The first paper money ever issued
by the government was in 1861. Ii
then was in the form of demand
notes, the first issue being for
$35, 100000, and bore interest at
the rate of 6 per cent. They were
payable two years after date.
They were called in many years
ago and the interest stopped, but
they have not all shown up at the
cashiers office for payment
Where are the missing notes?
Perhaps in the hands Of collec-
tors perhaps absolutely lost or
destroyed and will never be seen
at the treasury.
The net issue was of 100000, 900,
in the same year, but without the
interest feature. More than $780,
900, of this issue is floating
around somewhere. The govern
ment has been anxious to have the
notes presented and retired,
but the money keeps shy of the
treasury. Some of it may be in
the hands of collectors, but much
of it no doubt will never be seen
again.
During the civil war silver
change practically disappeared
from the country and some
remedy had to be found, somet
thing that would pass as money,
so the government issued first
and last nearly $37O,OOO,O0O of this
fractional currency, in denom-
nations of 5, 10, rs and so cents.
With an eye to the future the
flimsiest paper possible was
used. The result is that more than
$6,75O,O0O of this fractional cur
rency has disappeared without the
government having to take sub
sidiary silver from it's strong box
to hand out in return. On this
little deal in paper money the
government is to the good by
nearly $7,OO0,OOO, for there is no
probability that any considerable
amount of this paper currency
will ever appear for redemption.
Even bonds issued by the
government for loans made to it
disappear. OF the bonds issued
prior to 1861 more than $3.50, 900 has
never have presented for pay
ment. All interest on these
bonds ceased more than half a
century ago, and il they were in
existence they would have found
their way to the treasury long
ere this.
In 1863 the government was in
hard stress for money and issued
three series of treasury notes.
One series bore per cent inter-
est and was payable one year
after date; the second series also
bore per cent interest, but was
to run two years, and the third
series, known as compound in
terest notes, bore per cent in
terest and was payable in three
years. or these three series nearly
500, 100000 was issued, and more
than $500, 100000 are still out
standing. The interest ceased
more than forty years ago. What
is most remarkable about the non