Evening star., 1919-12-20
Mr.. .PLATTEXP[A|NS
LEGAL TENDER BILL
House Committee Chairman
Discusses Measure Relating
to Gold Certificates.

The House has just passed the bill
previously passed by the Senate to
make gold certificates Of the United
states payable to bearer on demand
legal tender.
Chairman Plat Of the House com
mittee on banking and currency,
which was in charge of this bill, ex-
planned the legislation as follows:
This bill carried the Endorsement
OF the Treasury Department and of
the Federal Reserve Board, and it's
enactment was urged to relieve the
shortage OF 81 and So bills, which at
this time Of Christmas trade has be-
come somewhat acute. The shortage
ing the last year or more by the fact
that silver certificates in considerable
amounts have been withdrawn from
circulation and the silver received in
exchange has been melted and sold
as bullion. Most Of the melting Of sill
ernment itself. which has sold the
bullion under the terms Of the act OF
April 23. 1918, known as the Pittman
act. but within the past two or three
weeks the price Of silver has several
times been enough above $1.292s an
ounce. which is its coinage value. to
make it profitable to exchange silver
certificates for standard silver dol
lars. and the disappearance Of silver
certificates tends to continue.
Demand for Small Bills.
The Treasury Department had re-
ported that the demand for small bill.
comes from all sections of the country
and Is becoming more urgent every
day. The banks find it necessary at
present to hold United States notes
OF larger denominations because of
the occasional demand for them az
legal tender in satisfying contracts.
If gold certificates were made legal
hn o.
that purpose. releasing the higher val
ue United States notes. Of which there
are outstanding in denominations 81
above 81, s174453,466. The Treasury
has enough 81 and 50 bills already
printed to relieve the present situa-
high value United States notes as
soon as legislation is passed so that
gold certificates can perform the same
function in the matter of making ten
der of lawful money on contracts.
Probably nearly everybody believes
that gold certificates are already law
full money and it seems rather sin
gular that they have not been made
legal tender before as they are legal
reserve money for both national
banks and federal reserve banks.
Silver Certificates Decreasing.
Monthly statements were issued by
the treasurer of the United States
showing paper VI cdCu
nominal ton outstanding down to
April 80, 1919, but since then have
not been published, though compiled
for the treasurer each month, with
the exception of federal reserve notes
According to these statements silver
certificates were decreasing slowly
even before the Pittman act was
passed in April, 1918.
On January 81. 1913, outstanding sill
yer certificates had fallen to s2s3.-
0S3. 900, of which $196,925,S52 was in
81 and 81 bills. while small United
States notes of the same denomina-
tions had risen to s12S,110.353. and
federal reserve bank notes which
were Issued specifically to take the
place of the silver certificates. called
in under the Pittman act. had risen
from s11,742,955 April 30. 1918, TO
sl3S, S,25O,1SO. of which SIS. .020.6o0 were
ones and twos.
Another Drop Noted.
On October 81, 1919, when the last
available statement was compliea
outstanding silver certihcates nau
fallen to $1S0.265,40o Of which Ss5,.
sS1.177 were 81 bills and $25.ssS.14o
50 bills. while federal reserve oank
notes to the amount of $269.642,soo
had been issued. of which $114.241 $50
we're ones and $46,624, ,3s4 were twos:
C;reenback 81 bills to the amount OF
sill g05.415. were. then outstandins
and s40,655,103 of greenback 81 pliis'