The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-04-13
Cannot PRINT
ENOUGH BILLS
DEMAND FOR SMALLER oENoMl.
NATIONS ouTRuNs SUPPLY
AND DANGERS EXIST.

WASHINGTON, April lJ.-Ihe average
llfe Of 81 bill Is only about one year,
This, coupled with the fact that tho
United States governments paper
money factory Is running 70 its capac-
| ity without being able TO build up a
surplus stock of bills, brings the re-
tail business men of the country face
TO face with situation which they
viii regard as critical
The truth is this: The government
officials. having charge of the produc-
ton of paper money acknowledge that
a strike. or q fire. or an explosion, or
any other accident or circumstance
which would tie up for any consider
| able period either the mill which man
ufactures the paper out Of which mon
ely is made, or the bureau of printing
and engraving. which Is the govern
ments paper money factor, would
cause an immediate shortage of small
bills throughout the country. on ac-
count Of the rapidly with, which 81
bills wear out. this shortage would in
crease with almost the stunning force
Of geometrical progression. with the
certainty OF at least partial paralysis
of the retail trade.
Demand Exceeds Supply.
This is situation the country has
never before been called upon to meet.
In the past the money making machin-
cry always has heeu 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 new
er has seen the time when II could
pile up much of surplus of new pa
per money and within the past year IL
has found itself unable to keep up
with the demand. To exc out the sup.
ply of clean parer money q machine TO
wash dirty paper money has been de
vised. and Furthermore. ]. L.. Ralph
director of the bureau of printing and
engraving, and Lee McClung. treasurer
of the United States. have paid a per-
sonai visit TO various subtreasuries TO
lay down strict rules that old mon
ely 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 rca-
sons which he believes contribute to-
ward the rapid increase In the con-
sumption of small bills. They are as
The growth In the countrv's pop.
ulation. which has caused money, es-
peci0lly the smaller denominations. 10 |
circulate more rapidly, with GORE
spending wear.
The growth in business activities |
1.-THE tendency toward the use OF |
small denominations
"The publicity given to uncleanliness
and insanitation of soiled notes. and |
the consequent demand for cleaner
money.
THE necessity for maintaining In
good condition an increasing volume of
pieces.
THE growing practice of payment of
wages in factories and shops. weekly
md bi-weekly as compared with
The growing popularity of paper
money In sections where silver was
in the greatest demand"
100000 900 More Needed.
AZ n hearing before the house COM
nittec on appropriations. when Messrs.
Ralph and McClung appeared to ask
or an emergency appropriation to en-
lble them TO print an additional 49,
10000 81 I've Sa~'a~ fNe "-~,ainderI
Il the present fiscal year. they made
his statement TO the committee:
For fifteen years past the trcasur-
RS Office has been endeavoring To
,uild up a reserve in its vaults. but
without success II does seem the part
Il wisdom that the treasury should
ave at least ninety-day reserve
took, which would enable Il to give
he people what they want within rca-
onable limits. Such a stock can new
II be considered as wasted. in the
ense that applies To banknotes held H.
FOR national banks which may
70 into liquidation. II Is only "a ques-
ion Of time when this money finds It's
sav into the channels OF trade aid
commerce. and ut the same time the
,,npav L. ooorl.d hotta. orportuottyI ,