The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-16

Secretary of the Treasury Morgen-
than predicts that all National Bank
notes will be out of circulation in a
year.
Single Type Is Aim
Only three types of currency will
be left in a year or more, with
gradual retirement of National Bank
notes. Federal Reserve Bank notes.
of which there are some S97, 10000
in circulation. and Treasury notes
of 1890. OF which there are only
sI,184.474 theoretically in circula-
ton and most of which probably
have disappeared.
Remaining will be Federal notes,
silver certificates and United States
notes.
What Senator Thomas Cd, Okla)
calls our "hodge-podge" of currency
thus is becoming simplified, with
the ultimate objective reported to be
the circulation of only one type of
paper money over whose issuance
the Federal government will have
complete control.
OF the $3.50, 428,9 $50 of money in
circulation on Jan. 81 a total of
1927 062 .304 was in National Bank
notes. This is quite a slice of the
total currency and yet the average
citizen will not miss it. Federal Re
serve notes will replace them.
Federal Reserve notes now are
preponderant in currency in circu-
lation. constituting S3.O48 ,255, 300 of
the over S5.OO0,OOOOOO. Next are
National Bank notes and third are
silver certificates, of which there
we're s58OOO0.OOO in circulation on
Jan. 81.
Whatever currency you have now
is legal tender for all debts. 1t was
made so by the gold dollar devalu-
alton act.
On the face of the nations cur
rency may be read much of the his
tory of the country.
Civil War Issues.
The issuance of notes by the ma
tional banks. for instance. was
authorized to help finance the civil
war. Bonds which secure the 1914
600, 900 of National Bank notes which
are to be retired from profits" of
dollar devaluation are Panama Ca
nal bonds to finance that giant prof.
ect and consolS. or consolidated.
bonds. which include an issue to
help finance the Spanish-Anerican
War.
United States notes are the green
backs of the civil war. originally
-SSUed under acts of February 25
and July II. 1862. and March 3.
1863. to help pay for civil war mate
rails. The largest amount out
standing was s449. 1886. 9O2 on Jan. 81,
1864.
The Treasury maintains a reserve
of sl56,039 43O in gold against these
and the Treasury notes of 1890.
The silver initiation fever of the
early nineties played about the So
called Treasury notes of 1890. They
were issued under the Sherman act.
which provided for compulsory pur-
chase Of silver and issuance of notes
I against II which could be redeemed
either in gold or silver.
This started a gold run on the
Treasury which compelled President
Grover Cleveland. at tire expense of
public criticism. to get a loan from
j. P Morgan the elder and sub
Sequently to obtain repeal of the Act
by Congress.
The Federal Reserve Act author
lied the issuance Of Federal Reserve
notes by Federal Reserve Banks
Federal Reserve bank notes were au-
thorized first temporarily in 1918 to
replace silver certificates being with
drawn from circulation. and again
during the 1898 banking crisis when
there was a shortage of actual cur
rency. They can not be issued after
the President declares an end to the
banking emergency he proclaimed
March s. 1888. They are being re-
-sr-1Z