which in recent years have become so popular in our circulation. The gold certificates are restricted in denominations to $10 and above but there appears to be good reason for the issue of a $5 gold certificate. The volume of gold certificates is greater than that of any other kind of paper money in circulation, therefore large amounts of this currency are sent to the Treasury for redemption with requests for a part of the returns in denominations of $5. The total amount of gold certificates outstanding on June 30, 1910, was $862,936,869, an increase of $10,335,000 as compared with that of the preceding year. The transactions in this currency during the fiscal year 1910 are recorded, by denominations, in the table following:

Silver certificates are issued largely in denominations of $1, $2, and $5, and are in great demand. The volume that may be issued is limited to the standard silver dollars available for the purpose. On June 30, 1910, the total stock of such dollars was $564,605,508, of which $72,432,514 were in circulation. The total amount of silver certificates outstanding at the close of the fiscal year 1910 was $489,117,000, an increase of $4,703,000 as compared with that of

1909.

The transactions in silver certificates, by denominations, during the last fiscal year are shown in the following table:

The demand for small denominations of currency, $5 and under, was incessant throughout the past fiscal year. The resources of the Treasury for the issue of such denominations were practically limited to the process of redemption and reissue in kind. For denominations of $10 and above recourse was had to the gold coin against which gold certificates were issued.

65872°-FI 1910-10

The total amount of United States paper currency of each denomination issued, redeemed, and outstanding at the close of the fiscal year 1910 is recorded in the subjoined table:

PAPER CURRENCY, BY DENOMINATIONS, OUTSTANDING JUNE 30, 1910.

The amount of each kind of paper currency outstanding, by denominations, may be observed in the monthly statement for June,

1910:

347,681,016 3,672,000 716, 193, 425 862, 936, 869 489, 117,000 2,419, 600, 310 1,000,000

a 2,762, 692

3,762, 692 346,681,016 3,672,000 713, 430,733 862,936, 869 489,117,000 2,415,837, 618

a Redeemed but not assorted by denomination.

RATIO OF SMALL DENOMINATIONS TO ALL PAPER CURRENCY.

The ratio of denominations of $10 and less to the total paper currency, by fiscal years since 1900, is given in the statement following:

COST OF PAPER CURRENCY.

Inquiries frequently reach the department relating to the cost of the paper currency issued directly by the Government. As a matter of information it may be stated that the paper used is made by a secret process under Treasury supervision by special contract, renewed every year. The Bureau of Engraving and Printing, a branch of the Department, designs, under the direction of the Secretary, engraves, and prints the notes and certificates complete. This currency is delivered to the Treasurer in packages of four thousand notes, the product of one thousand sheets of paper. Such a package is taken as the unit from which to reckon the cost.

With allowance for every item of expense attending the making, the issue and redemption of this paper currency, it appears that the average cost is as follows:

Total average expense of 4,000 notes issued....
Total average expense of 4,000 notes redeemed.

Aggregate average expense of issue and redemption....

$54. 04

8.80

62. 84

From the foregoing it will be seen that the average cost for each note is 1.571 cents. Calculations based upon these average expenses of issue and redemption indicate results that will be very close to the actual cost of maintenance of the paper currency, and such cost for the fiscal years 1909 and 1910 may be studied from the details set forth in the annexed table:

UNITED STATES PAPER CURRENCY OUTSTANDING AND COST OF MAINTENANCE.

AVERAGE LIFE OF PAPER CURRENCY.

Experience shows that the average life of the paper currency is shortened by the increasing activities of paper money in the business transactions of the country This is especially noticeable in the

smaller denominations of silver certificates-$1, $2, and $5. The average lifetime of each note, by kinds, may be seen in the statement following:

AVERAGE LIFE OF EACH NOTE AND CERTIFICATE IN YEARS.

The national-bank circulation owes its apparent advantage of longevity over other issues to the circumstance that the original plan of redemption was found to be practically inefficient. Since the inauguration of the present system of redemptions in the office of the Treasurer on July 1, 1874, these notes have been freely retired on becoming unserviceable, with a consequent shortening of their life, but the records of the earlier period still affect the calculation based on the whole history of the issue.

PAPER CURRENCY PREPARED FOR ISSUE AND AMOUNT ISSUED.

The increasing volume of the paper currency issued directly by the Government calls for the preparation of an adequate supply of the respective kinds and denominations authorized by law in advance of putting it into circulation. The pieces of currency issued during the fiscal year 1910 numbered 240,990,922 as against 235,210,400 prepared for issue.

Economy and prudence suggest the preparation of a greater volume to be held in reserve in order to supply demands for increased issues and to secure the best results in appearance and wear when put in circulation.

The number of pieces and amount of paper currency prepared for issue and the amount issued since 1902 is recorded in the annexed table:

The number of pieces of paper currency issued during the fiscal year 1910 was 240,990,922, an increase of 38,244,730, or 18.8

as compared with that of 1909.

per cent,

The issues of United States paper currency, by months, for the fiscal years 1909 and 1910 are stated in the table following:

UNITED STATES PAPER CURRENCY ISSUED DURING THE FISCAL YEARS 1909 AND 1910.

REDEMPTIONS OF PAPER CURRENCY.

The redemptions follow within a short period the issues of government currency. The demand for small denominations and the growing activities of the currency in circulation, by which its life of usefulness is shortened, increased both the number of pieces and amount returned to the Treasury for redemption. During the fiscal year 1910 the number of pieces redeemed was 216,173,273, an increase of 21,665,704, or 11.1 per cent, over those of 1909.

The redemptions, by months, for the fiscal years 1909 and 1910 are recorded in the subjoined table:

UNITED STATES PAPER CURRENCY REDEEMed during THE FISCAL YEARS 1909 AND