Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07

mediateiy substituted for the old. We
must proceed gradually and carefully.
Essential safeguards are necessary In
handling the retirement of the old,
which, In effect, IL the basis for the
issue Of the new. The redemption of
currency necessarily involves definite
legal and accounting restrictions, and,
of course, there are physical limita-
tions both at the Federal Reserve Banks
an immediate redemption Of all out
standing currency it will be necessary
for the issue of the new to be made
over a certain period of time. The
Treasury and the Federal Reserve
Banks viii do everything to make this
period as short as possible. This means
that at the very outset all banks APP
plying for currency will be rationed, ss
1t were, and each will be required to
take q certain percentage of old-size
currency assorted from the most At for
circulation. This percentage Of old
currency will be gradually decreased
| until after period of a few months
1t is anticipated that all old-size cur
rency presented at Federal Reserve
Banks viii be replaced in full with the
reduced-sized currency.
First Issue Of All Kinds.
The first issue of the new small
size currency will include all kinds,
except national bank notes and all
denominations from 81 to $40. Small
size gold certificates and Federal Re
| serve notes in denominations above
| $40 will be issued at later date. The
| small-size national bank notes will be
| printed and issued in order of charter
| numbers, beginning about July Is.
The issue of the new snall-size cur
rency will be made through the Fed
eral Reserve banks and branches.
Stocks of the new-size currency already
have been placed in Federal Reserve
| custody In the IL Federal Reserve
banks and in certain of their branches.
The Federal Reserve banks have been
authorized to make available on July
| 10 to the commercial banking ir1sti-
| tutions Of their respective districts
| limited amounts Of new srnall-size cur
rency. But let me emphasize that the
amounts available for issue on July 10
will be strictly limited. We anticipate,
| Of course, a curiosity demand, which,
! for comparatively short period OF
time, will increase the demand for cur
rency, and we are prepared to meet
| that curiosity demand, but only 70
! limited extent After what I may call
the period of initial novelty interest is
| over the public must expect the new
currency to be issued but gradually and
aS the OLD currency ID Ietucu as uHAlb
| for further circulation. This will re-
ouire, as I have already said, period
Of at least three or four months. during
which time both sizes of currency viii
| be in circulation, but with the old size
gradually disappearing. In so far as
| the national bank notes are concerned,
| 1t will probably take at least six or
seven months to complete the turnover.
| All this necessarily will involve GER
| tain amount of inconvenience on the
part of the public, an inconvenience
wholly temporary in character and
which I think the public will appre-
ciate is fully justified and is very much
outweighed by the advantages to be
| derived from the substitution Of the
new currency for the old. You can
rest assured that the Treasury will
make every endeavor to accomplish a
complete turnover as rapidly as pos
sible. but in the meanwhile we ask
you to be patient: to be satisfied for
| the time being with the currency which
has given you reasonable satisfaction
| for more than go years. and not to
consider 1t necessary to carry nothing
| but the new bills In your pocket. With
your cooperation and good will it Is
probable that year from now the old
size currency bill will be rarity and
| in a short time thereafter will arouse
as much curiosity as our new bills VIII
on Wednesday next.