New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-20
Dearth of Currency
Causes Bankers to
Appeal to Congress
Big Military Payroll Ag-
gravates Shortage of Small
Denomination Bills

BANKERS here and in other large cities
Of the country are making an urgent
appeal to Congress through the Ameri-
can Bankers Association to enact leg
islation that will increase the number
of 81 and SIS bills in circulation. Inc
shortage Of money in smaller demon
nations, especially of 81 bills, has be-
come so acute as to be a serious handi-
cap to ordinary commercial transac-
tions, while country bankers are having
great difficulty in providing farmers
with the currency needed to pay their
harvest hands.
The large amount of currency
being used by the government to meet
the payrolls of military encampments
which have been established throughout
the country has greatly aggravated the
usual shortage at this season, when big
sums are required for harvesting and
crop moving purposes. Inquiry at the
local Sub-Treasury yesterday disclosed
the fact that demands for currency for
government payroll purposes have in
creased 100 per cent.
Government Payroll Grows
The Treasury Department is drawing
on its stock of money here, not only
to pay off the large bodies of troops
encamped in the vicinity OF New lorS
CITY. but also those military and naval
units which are constantly being moved
through the Eastern district. Inc
amount being disbursed at this centre
~ tho nresent time is now estimated
at about S4,0O0,000 a month, mostly All
in hills of the smaller denominations.
This has resulted IN such Dig de-
mand for 81, 81 and 50 bills that inc
bankers here say they are having OIL,
fculty in obtaining enough OF that hihu
of currency for use over the counter
Most of them have been obliged TO re-
fuse requests from their country cor
respondents for small bills.
Treasury Department Investigates
The Treasury Department at Wash.
ington, acting on the suggestion OF
Congressman Glass, chairman OF the
House Banking and Currency Commit
tee, has instituted an inquiry into the
shortage of 81 bills, and the chairman
of the legislative committee OF the
American Bankers Association has re-
ceived assurances that If 1t is found
necessary the legislation necessary TO
correct the present situation VIII De
introduced in Congress.
A bill introduced last spring by Mr..
HAYES, Of California, and now pend
ing, is regarded by officials OF the
Bankers Association as being good
enough, so far as it goes, but 1t does
not, they say, go far enough. 1t pro-
vides that silver certificates shall be
issued only in the denominations of 81,
81 and SIS, and that certificates OF high
or denominations than s. shall be re-
tired and those of smaller denomina-
lions substituted therefor; also, that
Treasury notes Of higher denomination
than So shall, when received at the
Treasury, be retired, and denomina-
tions of 81 and So be substituted.
Bankers Suggestions
The American Bankers Association
would have this bill amended so as to
eliminate the 50 silver certificate, as
well as other denominations over 50.
BY so doing, il is figured that 100000
600 ST silver certificates would be added
TO the amount at present in circulation.
The total amount of silver certificates
now outstanding is about S492,o6O,OOO,
of which S2l5,lO2,904 are Of 81 and
S176.l29,092 of So denomination.
1t is further proposed by the Bank
ers' Association TO add TO the Hayes
bill a provision that the Federal Re-
serve banks issue notes under the di-
rection of the Federal Reserve Board
in denominations of 81, the government
TO stand the expense Of printing them.
At the present time no Federal Reserve
bank notes are issued in any denomlna-
tion less than So.
The provision in the Hayes bill with
reference to Treasury notes, It is eI-
planned, refers to the issue Of 1890, Of
which about 81 100000 is outstanding,
and IL all these bills in denominations
higher than SIS were retired and 81
notes substituted, it would increase the
present issue of the latter about
81 ,6oo,o 900.
So far about the only action that has
been taken to relieve the shortage OF
small bills has been under the law
enacted In 1907, which authorizes the
Secretary of the Treasury, whenever
public need demands it, to issue United
States notes-that is, "greenbacks SIN
denomination of 81, 81 and IS and re-
tire an equivalent amount in higher de-