The Washington herald., 1917-06-22
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspapers.

Not the least OF the evidences Of the
business prosperity which is now
speeded up almost to its capacity, is
furnished to those who receive at
currency paid out up on small checks.
These bills are in small denomina-
lions OF one and two dollars. They
are greenbacks and the expert eyes
In the banks have recognized ever
since these small denominations were
Treasury Department is using old
places OF the one or two-dollar de-
nomination. So long have people been
accustomed to greenbacks or no SMALL
er denomination than five dollars, that
1t occasionally and even often hap
ing presumed that the one-doIlar
greenback or the two-dollar green
oack Is really a five-dollar note.
The reason for this recent infusion
Of greenbacks OF the denomination OF
one or two dollars in the currency
Is OF itself sufficient to prove that
great business prosperity prevails
tnroughout the country. For demands
Tor an unusual amount of bills of
small denomination have been recefv-
ed at the banks and at Washington.
Ihe printing and Engraving Bureau.
II Is understood, cannot print more
silver certificates OF the denomina-
ton Of one or two dollars. There
lore 1t was necessary to turn to an
other resource. The banks and the
treasury Department have been in
possession Of greenbacks of large de-
nominations, 200 or more. These
nave been withdrawn and in place
Of them have been issued greenbacks
or the denomination OF one and two
dollars. These issues do not Increase
tne aggregate of the breenback but
tney do greatly increase the use OF
these promises to pay as a circulate
Ing medium.
It. is an axiom of both banks and
business men that when there is an
unusual demand for currency of
small denomination, that demand
points to great business activity. By
ana by farmers in the West will have
need OF small currency for the nav
ment OF their farm hands, although
wlthln the past five or six years some
farmers have been making use of
being able to do that because Of H.
Improvement of banking facilities in
the farming district, Al
This morning, the president of one
or the banks in New York Citv
through which nearly five million
s1oScTlpuons were received for bonds
OF less than a thousand dollar de-
nomination, the greater proportion of
them having been bought upon the
lnstallment plans said that the ma
Jorlty OF the tlrst payments CbeinR
Two dollars for each one hundred
aoliar oond), was made in green
packs OF the denomination Of one or
Therefore, it is reasonable to as
sumo that II this Is the case with
one bank, 1t has also been the ex-
PsTlence OF many, so that the issu-
ing OF greenbacks in the smallest
poSsSSipe pcsSit oenomination has greatly
taclICaIeo the sale Of government
What the Reason Is.
Oncial announcement comes from
washington that Secretary McAdoo
VIII accept subscriptions for no more
man man tne fuli amount Of the g, ,O00, ,OOO, 90
nverIS,bo y SOnGsi In other words, the
eePting for the moral effect. Excel
lent reasons are given, in the view
OF nnancial authorities for this de-
cision OF the secretary of the treas
tn;. Hry;n Eor' In their opinion, 1t points
retary now has In mind the making
OF an offer for another large loan.
perhaps as much as g, 900. 900 900 some
time IN the autumn. If he were to
accept now over subscriptions for the
ioersy .sSo i0an noa ~ which may reach as much
in that way impair, for reasons which
the banking authorities Understand
new loan, SeSS "a 'He
That the new loan will be a sue
cess rs now the opinion Commonly
expressed, It being frequently said
tnat the temper of the American peo-
pie indicated by the great nonnIsr
success OF. the present loan assures
success tor a new offering, One of
mo nose an IA me financial district who
I9r Tour weeks to leadership in the
placing Of this liberty loan. said this
morning that it would NOT snrprise
him a. considerable mart of the
money which the Tovernmsnt 4. 1o
receive for the liberty loan. and
which is speedily to he disbursad
among the banks. whence n Will he
paid out In payment for sunnIies and
munitions Of war, were inyasted In
the new loan, which win he ofsered
before the close Of the year.
As II Was I'm other Days.
Some OF those in authoritv In the
banks which have taken 20 strnro - sn q
part In facilitating the nIecing Of
,arisncss ~" recall some of the ex-
pSLsnces ptL OF american bankers in
S s5 tays wnen the government Of
leasu 70 sen ponds In order to raise
mo money; Eor instance, as recently as
.ne aonistration OF John Sherman
Se.ary o1 the Treasury, many
oanhS' especialiy some in Boston,
couid NOT De Persuaded to partici-
RGAxrn ne refunding loan offered