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larger Lay ger bank notes N otes growing in favor hoarding boarding one of reasons advanced by financiers washington paper currency of high denomination has notably increased in the last three and one halt half years in outstanding 1000 and notes the net gain has been outstanding and bills decreased while other high denomination paper gained between january 31 1029 and june 30 1032 neither the treasury nor the federal reserve has analyzed the paper money data to the extent necessary to determine the exact reason for the tremendous gain in the and 1000 bills hoarding boarding and the use of money in large units bs bi gangsters racketeers bootleggers and other illicit gentry have been advanced as factors in the largo large amount of outstanding bills in the to 1000 group i recently at the institute of public affairs at the university of virginia edmund platt of new york vice president of the marine midland corporation and former vice governor of the federal reserve board was asked whether he thought 1000 and notes were money in the sense of useful circulating medium and why they were issued by the federal reserve system mr platt said that the e only a ly issue of 1000 1060 notes by his bank he could recall had been one which wao sent to cuba mr platt understood that the bills were to be used for betting on horse races robert warren of new york asserted that bills were used instead of gold by those who lacking confidence in banks banka have withdrawn their money from deposit and transferred it to safety deposit boxes to the amount of about in determining the amount of hoarding boarding treasury lind end federal reserve experts have considered the requirements of busl business ness and the amount of currency in circulation on this basis hoarding boarding has been estimated as aa from to including the abnormal volume of money maintained in vaults by banks to meet emergencies on june 30 the total amount of money in circulation was or an increase of during the year in the face of declining business circulation at the end of the 1032 fiscal year was higher than june 30 1029 1929 find and higher than june 30 1030 1930 considerable doubt Is expressed in washington whether criminal elements make great use of banknotes bank notes of above 1000 normally they use more i norene negotiable goti got able lable money not much change in their banking habits has been noted nevertheless and 1000 bills may be used to a considerable extent in the bootlegging business hoarders boarders Hoar ders of large sums a undoubtedly use bills of 10 and 1000 between january 31 1029 and june 30 1632 1932 the largest gain in outstanding bills was that of the denomination it was the bills increased the 1000 bills in bills there has been an ln increase rease of we since january 31 1030 in the lost last six months it came to but from 1020 1920 to this month a net decrease of Is recorded five and 2 bills decreased the reduction in outstanding bills as shown by treasury books was however of that amount OW was accounted for by the retirement in I 1 may of a reserve in gold certificates maintained in the new york assay bringing the actual decrease in the bills to As these bills were sent to the treasury for redemption they were retired |
