Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-04-11
Growth Of ceuntry's Trade and Ten.
dsney to Object to Handling Dirty
Money Among Reasons For Scarcity
Paper Money Moro Popular Now
Than Silver Even in the West.

gard as critical.
The truth is this: The government
officials. having charge Of the produc-
ton of paper money, acknowledge tina,
strike. or fire. or an explosion, OF
any other accident or circumstance
which would tie up for any consider
able period either the mill which manu-
features the paper out Of which money
is made. or the bureau Of printing and
engraving. which Is the government S
paper money factory. would cause an
immediate shortage Of small bills thru
out the country. On account Of the
rapidity with which 81 bills wear out
this shortage would increase with al
most the stunning force Of a geometri-
cal progression, with the certainty Of
at least partial paralysis of the retail
trade.
Demand Exceeds Supply.
This situation the country has never
before been called upon to meet. In
the past the money making machinery
always has been away ahead OF any
possible demand. But during the past
decade swift change has been taking
place. During those years the bureau
Of printing and engraving never has
seen the time when it could pile up
much of a surplus Of new paper money
and within the past year 1t has found
itself unable to keep up with the de-
mand. To exc out the supply of clean
paper money a machine has been de-
vised. and Furthermore ]. E. Ralph. d.
rector OF the bureau Of printing and
engraving. and Lee McClung, treasurer
Of the United States. have paid a per-
sonal visit to various subtreasuries TO
lay down strict rules that old money
must not be redeemed with new money.
unless the old money is torn or filthy
beyond any possible use.
Director Ralph has given the matter
much study and he states several reas-
ons which he believes contribute
toward the rapid increase in the con-
sumption OF small bills. They are as
follows:
"The growth in the countrys popu-
laticn. which has caused money. es-
neciallv the smaller denominations. 70
circulate more rapidly. with CORE
spord wear.
a1,he growth in business activities
"rhe tendency toward the use OF
"The publicity given TO uncieanilness
and insanitatfon of soiled notes, and the
CONSEQUENT demand for cleaner money
"The necessity for maintaining in
good condition an increasing volume
OF outstanding pieces.
"The growing practice Of payment OF
wages in factories and shops "eehis
and bi-weekly. as compared Will
monthly.
"The growing popularity OF pape.
money in sections where silver "a@
formerly in the greatest demand
" 10000, 900 MORE NEEDED.
At a hearing before the house com
mjttee on appropriations, when Messrs
Halph and McClung appeared 10 ASH
for an emergency appropriation 10 en-
able them to print an addltionad A.
600 900 81 bills during the remaihoe'
Of the present fiscal year, they mad
This statement to the committees:
"For fifteen years past the treas
urer's office has been endeaVorlng
hui,d IN reserve in its vaults. ou
without success. 1t does seem the par
If wisdom that the treasury SHOULD
have at least a ninety-day reserve
stock which would enable it to give the
people what they want within reason
able limits Such stock can never De
considered as wasted, in the sense that
applies to bank notes held in reserve
for national banks which may go into
liuuidation. 1t is only question OF
time when this money finds its way
Into the channels Of trade and COM
merce, and at the same time the money
is afforded better opportunity to under
20 a longer seasoning process while ir
reserve. Furthermore, II at the pres
ent time there should be serious fire
strike, OF other disability to affect the
Dalton paper mill or the bureau Of en-
craving and printing, the embarrass'
inent to the government and the public
might be acute In the extreme"
Used 40 Fast AZ Made.
I Have you on hand any completed
stock ?" Treasurer McClung was asked
With regard to the small denomi
nations OF ones and twos we have OF
| hand at the present time and have hat
all during the fall not more than few
days supply ahead. That gives NJ
chance whatever for the seasoning o.
the notes in our reserve. 1t necessi
tates our turning these notes into tn
! public FUNDS, thru the banks, JUST al
fast as we get them from the burea,
Of engraving Not only that but w
are unable to give the banks what the.
want. Their big demand is for tn
smaller denominations. OF the tota
amount Of paper money outstanding. g.
! per cent 10 In ones and twos alone, an,
80 per cent, practically half. Is in ones
and, Of course. the notes of small de
nominations pass rapidly from hand t
hand ana soon become spoiled and ar
sent in for redemption. That necessi
ltates our turning out new notes taste
than We ara now able to get them fror
the bureaa Of engraving and printing.
How IluShH ir:re. money IL now 4
circulatipn?"
i THE number OF pieces of pape
money outstanding on June 30 Of Lar
4. year wes 10000. 900. That was an in
csease Of 1s.1 per cent over the amour
= II -. .s--- - - A--a.