The system of issue and redemption of federal reserve notes which has been adopted has had a marked and beneficent effect on our monetary media. The Treasury, federal reserve banks, and the member banks co-operated to substitute federal reserve notes for gold certificates. The reserve notes have increased rapidly in circulation, whereas the gold certificates are pocketed in the federal reserve banks and with the federal reserve agents. The large greenbacks are also being concentrated in these hands or are being converted into small denominations which are finding a permanent field of circulation. The void left by these withdrawals is filled with federal reserve notes. The national bank notes will be gradually retired. Thus the currency of the United States is being simplified and federal reserve notes are fast becoming the only currency of $5 denomination or higher. The process of reducing the denominations of the greenbacks and national bank notes, and the process of saturation of the currency with federal reserve notes, render the objectionable greenbacks, silver certificates, and national bank notes less annoying and threatening.