Evening Republican, Volume 14, Number 98, Rensselaer, Jasper County, 25 April 1910 — How Money Gets Into Circulation. [ARTICLE]

How Money Gets Into Circulation.

yhere are four different kinds of legal tender In this country. They are gold and silver coins; gold and silver certificates, treasury notes and national bank notes. When gold bullion is brought to the government mint to be coined the person to whom the gold belongs is paid by the government in gold coin, while those bringing silver bullion are paid in silver certificates. Owing to the fact that gold easily wears away and that a gold coin, after being in circulation for same time, would lose some of the gold, the value deteriorates. There would not be the full amount of gold in the coin and the actual value would be less than the face value. The government instead of allowing the gold to circulate puts it into its vaults and issues certificates of deposit which entitle the holder to 'the face value of the certificate if he presents it at the treasury, and he is given the amount of gold It calls for. The same is done with the silver, but merely because silver is too heavy to carry around In large quantities. The silver certificates are in the form of one and two dollar bills. Treasury notes are merely promissory notes Issued by the government. No certain amount has been deposited in the United States treasury for them, but the government’s credit is behind them. National hank notes are the same as the treasury notes with the exception that Instead -of issued by the government they are issued by the national banks, whose credit is good, for tho government backs them.