The extent of changes made in the denominations outstanding during the fiscal year 1906 may be studied in the annexed table: The total amount of United States notes, Treasury notes of 1890, gold certificates, and silver certificates, of each denomination issued and redeemed during the fiscal year 1906 and outstanding June 30, 1905 and 1906, is shown in the subjoined table: PAPER CURRENCY, BY DENOMINATIONS, OUTSTANDING SEPTEMBER 30, 1906. The denominations of each kind of paper currency outstanding may be observed in the monthly statement for September, 1906: Total... Unknown, destroyed.' Net. $1,882,988 1,430, 430 6,664, 200 278,357, 911 20, 334, 812 3,777, 125 $487,366 347,804 1,579, 200 2,621,210 1,290, 170 29,750 6,889,550 344,500 86,368, 245 241, 639, 580 183, 137, 720 19,785, 750 42, 305, 100 $106, 355, 763 50,940, 826 392, 252, 117 15, 620, 821 538, 239, 522 $205, 201, 164 9,306, 080 419, 269, 946 7,649,000 93,500 20, 675,000 321,000 24,000 10,000 40, 0.59 40, 059 347,681,016 7,021,000 573, 903, 108 581,740,869 478,562, 000 1,988, 907,993 1,000,000 1,000,000 346, 681,016 7,021,000 573, 903, 108 581,740, 869 478, 562,000 1,987, 907, 993 RATIO OF SMALL DENOMINATION TO ALL PAPER CURRENCY. The percentage of small denominations to the total paper currency is shown in the subjoined statement: DEMAND FOR SMALL DENOMINATIONS OF CURRENCY. The amount of paper currency of the smaller denominations that is actually required in the channels of trade can not be correctly estimated. During the past six years the Treasury has largely increased the denominations of $10 and under by canceling the larger denominations of United States currency when presented for redemption, and issuing in their stead the smaller denominations; but the limit seems to have been reached, because the presentation of large denominations of silver certificates has practically ceased, and the available resources of the Treasury are at a standstill. From March 1, 1900, to October 1, 1906, the country has absorbed $367,725,383, or about $56,573,000 annually, in paper money of the denominations of $10 and under, but the needs of business, measured by the continuous appeals for small notes that have reached the Treasury during the last fiscal year makes it clear that the supply is not equal to the demand. The following comparative statement shows the additions to the denominations of $10 and under since March 1, 1900: The total amount of national bank notes outstanding on October 1, 1906, was $573,903,108, of which $86,369,245 was in the denomination of $5, as against $191,301,036 allowed under the law, making a deficit in the normal supply of more than $104,000,000 in $5 notes. At present the national banks, in response to the appeal of the Secretary of the Treasury, are issuing a greater number of $5 notes, and since June 30, 1906, have increased the volume of that denomination outstanding by $9,479,070. Experience, however, in recent years demonstrates the fact that many of the national banks are reluctant to issue $5 notes, though there is constant demand for an increased supply of that denomination in every section of the country. CONGRESS CAN PROVIDE REMEDIES. The National Government furnishes nearly three-fourths of the paper circulation, and the supply of denominations should respond to the demands of the public. The pressure from bankers and others for a larger and regular supply of small denominations of currency continues unabated, with the Treasury unable under existing law to comply with their urgent requests. The sentiment of the country seems so unanimous for a rectification of this untoward condition that it is naturally to be expected that Congress will ultimately enact the legislation that it has under consideration, which will bring full relief to Treasury conditions and add to the volume of small denominations without inflating the currency. COST OF PAPER CURRENCY. Many inquiries reach the Treasury relative to the cost attending the production, issue, and redemption of United States paper currency. A careful and searching investigation upon the experience of the fiscal year 1906, with due allowance for every item of expense incident thereto, shows the average cost for each piece to be 1.571 cents. The details of the reckoning may be followed here: Cost of each 1,000 sheets of paper delivered to the Bureau of Engraving and $5.95 Cost of engraving and printing each 1,000 sheets (4,000 notes) of perfect work, delivered to the Treasurer of the United States.. 42.09 Cost of sealing, separating, bundling, and issuing each 1,000 sheets (4,000 notes).. 6.00 Aggregate average expense of issue and redemption.. Average expense of issue and redemption of each note... The cost of maintenance of the United States paper currency, based upon the average expenses of issue and redemption, is set forth in the following table: 54.04 8.80 62.84 0.01571 Issued Redeemed.. Total. Issued. 1905. 1906. Total.. UNITED STATES PAPER CURRENCY OUTSTANDING AND COST OF MAINTENANCE. Fiscal year. Amount. Cost of maintenance. $1,338,938,985 Per cent. 0.196 .193 |