Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-17
NEW TYPE OF MONEY
SOON TO Be ISSUED
Federal Reserve Notes
Amounting to Many Millions
in Contemplation.
SAMPLE BILLS SUPPLIED
BY GOVERNMENT BUREAU
Five Denominations Submitted. SIS to
$100-Plans for Uniform De-
sign in Paper Currency.

Millions OF dollars worth of paper
money of a new type will be put into cir
! culation upon the establishment OF the
| federal reserve bank within the next few
weeks.
Under the federal reserve bank act each
of the twelve federal reserve banks will
receive advances from the federal reserve
! board in the form of federal reserve notes,
distinctly new sort Of paper money.
Commercial paper will be the collateral
advanced by the various banks as Sc
curity fer these notes.
Controller of the Currency Williams has
samples OF this new paper money now un-
der consideration. At his request Joseph
E, Ralph director of the bureau of en-
craving and printing, prepared notes Of
IS. SO. $50, $50 and 500 denominations
and these have been submitted to Secre-
tary McAdoo. 1t is not likely, however.
that the samples will be officially ac-
cepted until the members of the federal
reserve board have been confirmed by
the Senate and can confer with Secre-
tary McAdoo and Controller Williams
concerning the new notes.
No Estimate of Volume.
At present no official of the Treasury
Department is able to make any estima e
which will probably be put into circu,a-
ton this year Federal reserve banks are
required under the new law, to keep gold
reserves of not less than 10 per cent
against federal reserve notes in actual
circulation. The amount Of these notes
required by the federal reserve banks
will depend largely on the amount OF
money required by member banks for
the redlscountins of commercial paper.
Last year at harvest time Secretary
Mc-Adoo permitted banks in the west
and south to borrow money 0. CONNER
cial paper and about SS7,000.O00 was
loaned The Immediate demand for
federal reserve notes will probably be
far in excess of that sum, as the har
vest loans were limited to the farm
ing sections, while the entire United
States will draw on the federal re-
agricultural. industrial and commercial
paper. The money for harvest emer-
gencies was limited to twenty-eight
states and none of it went to New
FORK and New England
Designs of New Notes.
The new five-dollar note submitted
by MIR. Ralph is typical of agriculture.
The portrait ON the face OF the note is
Lincolns. and the back shows a har-
vesting machine and allegcrical fig
ures typical of farming. The ten-
dollar note bears portrait of Cleve-
land aud manufacturing scene. The
twenty-doilar note bears Jackson's
portrait and is typical of commerce,
having steamship, train and other
mediums of trade on the back. Grants
picture is shown on the fifty-dollar
note, and Franklin's portrait adOrns
the one-hundred-dolla bill Both of
these larger bills are typical of the
arts. All the bills will be printed in
green ink on the back. while black ink
will be used on the faces.
For some time the. Treasury Depart
ment has been anxious to make all
paper money more uniform. At present
different portraits appear on different
sorts of paper money of the same de-
nomination. 1t is likely that the por-
traits selected for use on the federal
reserve notes will also be used on other
paper money. So in the future all
bank notes. gold certificates. silver GER
titicates and federal reserve notes of
IS denomination will probably bear Lin
coins portrait. and so on through the
series up to 500.