The Washington times., 1928-11-17
Ne v CURRENCY
To APPEAR
IN JULY
BY HARRY GUSACK
Financial Editor

Inc 0ate OF issuance OF new sinai
sized currency, in denomination:
from 81 to $40 has been tentatively
fixed for next July, 1t was an.
nounced by Under Secretary of the
Treasury Ogden L. Mills yesterday
at the quarterly conference of Fed
eral Reserve Board governors.
National bank notes will not be
Included in the initial distribution
of the new currency, it was stated,
as Secretary of the Treasury Mel
lon believes it advisable to submit
to Congress the question whether
It was still desirable to retire the
national bank notes.
1t was originally contemplated
at the time of the creation of the
Feueral reserve system that ma.
tional bank currency should be re.
tired" Mills said. Moreover, since
9 considerable period of time has
elapsed. the Secretary of the Treas
ury deems it advisable to submit
the matter to Congress for its fur
ther consideration at the next ses.
sion.
Should Congress determine that
national bank currency is to be
continued in circulation, the de.
partment will be prepared to begin
production of national bank notes
in the reduced size early in the
/ fiscal year 1880, which begins on
July i, next.
This statement is taken to mean
that Secretary Mellon will ask au-
thority of Congress TO issue ma.
tional bank currency in the new
sizes and may indicate that 1t will
become a permanent part of the
currency system. The national
banks have opposed elimination of
this currency since it forms, for
one thing. an excellent advertising
medium for the banks.
The plans presented by Mills are
subject to modification after the
reserve bank governors have had
an opportunity to study them,
since. the new money will be put
into circulation through these
banks.
Issues of old size United States
currency by the Treasury will cease
about April 80, 1929, and thereafter
for two months the currency de-
mands will be met by Federal re-
serve banks from their stock of new
or circulated old size currency.
This may involve for a short pc
Rod the circulation of notes that or
dinarily would be retired from cir
culation because of their condition,
but it is believed that the public will
accept this as a temporary measure
rendered necessary by the plans for
the change to new size currency. and
in this way will cooperate in facili-
tating the carrying out of the pro-
gram" Mills told the governors.
On July there will be In. the
hands of the reserve banks ready for
distribution a sufficient number of
small-sized bills of the various kinds
and denominations to meet the rea-
sonable demands, according to Mills.
It probably will be necessary for a
period of time to allocate distribution
so that for several weeks certain
proportion of oId.size currency will
remain in circulation, due to the
problems involved in the cancellation
and redemption of the old-size cur
rency.
AT as early a date as possible
the Treasury will require the re-
demption of all outstanding old.size
currency as rapidly as it reaches
the Federal Reserve Banks" Mills
said. The Secretary of the Treas
ury later will issue further public
statement definitely fixing the issue
date and method of distributions.
Full details will thereafter be fur
nighed the individual banks by the
Federal Reserve Bank of the district
from time to time as required.
Advance orders for currency
cannot be accepted by the Treasury
from individual banks or others. az
the distribution will be handled
through the reserve banks"