New-York tribune., 1922-10-22

tain 60 get over it In time and rstura
to his former casual acceptance ef sas
gold certificate as no different from
other currency. Of course, there b
and has been no difference from shs
| money standpoint, and the recognition
and spread of that fact as pepusr
conviction will probably be the most
important consequence of the freer 90
culation of the yellowback.
The decision of the Treasury De-
partment that the gold certifcstes
which had been piled up in banking
reserves DUNG the war should gradu-
ally be put back into circulation de-
for that accumulation no longer sx-
quirements for credit elackued seie
Of unwieidy proportions. American
gold reserves are to-eey higher tnsn
they have ever been, moro than sboo.-
100000 above what hey were CURING
the war when the need wss the gIeas-
est. The Increase within The year &c
shown by the Federal Reserve - ssase- NV
nents, has been in exeess o sSSV,voSv,
600. Meanwhile, tremendous nquioss.
tion of loans has occurred WHICH ohls
recently has been succeeded py ~
newed expansion as Improving 49,
and seasonal agricultural requirensInn.s ~
have made their demands upon .ae
credit structure. Reserve bank rsti0s
which a couple of yesrs ago noss1sr c.
close to the minimum prescrioea ~
law are now at levels indicative % -
extremely sound condition ana ~
fiecting the temporary lack OF use ~ =,
the Great hoard of gold which sns
country possesses.
More irs Circulation
Under the circumstances. tsrmlnSs
tion Of the war practice was aesm
wise by the Treasury. Tae 1aa,.
which had been segragating soia Ma NJ
tificates from other money 20 Gn.t hsats
their shipment to the Reserve papss s.s
were told to pay out ysliowpscAS -. T.
discrirninately with other bisss. ~ ~
banks, however, har relatively rv av
yeilowbacks on hand The TreasIn
recognized this situation. ana " u,
structed the reserve bankas ss -. ~
agents. Co put more gold csftincss'
intn the 1ansral currency pool. ~.
The reserve banks, followsng sns..
directors. have been gradually inefss..
ing the amount of yellowbacks " ~: ~
cnfation. both relatively and sctuslu.
These institutions have large pcsxs
in regulating and determining tns =. hai IS
and proportions of the various nos.A .Ais
circulation, /, O., the circulating s,s n
are constantly flowing into the e. ~ q.
banks and In paying ont funds snes' 4. n
,stitutions can disburse, WITHIN "a
limits Of the denominations waSs =. g
and the aggregate supply Of eaea usls
of notes on hand, gold certincsss., -.
yer certificates, national pank w.
and Federal Reserve notes. .1
After q moderate initial denzss' :
there have been few requests Ass 8.
supply Of gold certificates. Tne 81
crease in the floating supply hss gsss ssss
accomplished rather by the zeee.ss
out process undertaken By tho resesss s
banks. The actual expansicn ~ voIuIs
outstanding has not been % iafge q
might have been expected g ksssf
from the new policy. The amcnns =
gold certificates In circulation la eua.
stantly fiuctuating, 80 that aascasss
figures ara difficult to obtain.
Yellowbacks wexc In circulaticn outs
ing the war as demanded; to-day ~
are Ia casual circulation sn that sass =.
are paid out without di6erentiassos
from other BILLS. Before long tnsy
shciud BE- casually regarded 80 mk
that II possible 81 . FERN Qt nc9e - ~
smallsat dsnouAtaaA3sR "a whash =
&at3axsv