The Portland daily press., 1890-12-31
THE S0-CALLED FINANCIAL BILL.
Provisions Of the Measure Now Be
fore the Senate.
The Result of the Cry for Aid From
Wall Street.
At Best Ii is a Scheme Of Very
Doubtful Expediency.
Especial to the Press. ]

Lopcciht W luo IICs5.l
WASHINGTON, December 80 In the Sem
ate today, Mr.. Stewart Of Nevada. one Of
the ''silver Senator'S" acting In accordance
with the notice which he gave yesterday,
brought to the attention of the Senate the
so-called financial bill," which the Repub-
lican senatorial caucus framed some time
ago in conformity with the outcry raised in
Wall street and in some parts Of the West
and South. that some legislation be enacted
to relieve the financial situation. 1t is very
doubtful whether this bill has been heartily
favored, even by those who framed 1t. But
the situation of the elections bill. the atti-
tude Of the "silver Senator's" and the pres
sure from certain financial circles formed a
combination Of circumstances that impelled
some Of the most conservative Senators to
acquiesce in the bill, which is at best meas
ure OF imitation and OF very doubtful expedi-
ency. But whatever the tendencies Of the
bill, and whatever its prospects of passage,
IL embodies some important notifications OF
the governments financial system.
The most Important OF these changes are
six In number:
~. The purchase during 1891 of large lump
OF silver bullion Tin ali 2,0O0.o0O ouncesl, In
addition to the ordinary monthly purchase Of four
and q nalf million ounces, which Is going on In
mer.
law so that national banks with a capital stock OF
not more than S5U.oU0 each may be relieved Of
the necessity OF having deposit of United
States bonds of more than thousand dollars for
each bank.
(3). That national bank may issue crculat-
ing notes up to an amount equal to the full
amount @ In Uni,.d States bonds deposited to Sc
(4). That the Secretary may issue $500, ,Or o.
600 worth Of United States two per cent bonds.
which he may apply TO the purchase Of outs % and d.
ing United states bonds bearins a higher rate of
interest. This would enable the secretary to re-
fund about a third Of the entire bonded debt now
bearing interest at four per cent
(5). The free coinage Of silver whenever the
market price Of silver bullion shall have been
continuously for one year one dollar or more for
37l14 grains VI pure silver; !. 6. whenever gold
and silver shall be on parity in value according
(6). The issue Of treasury notes against the
fve and half million dollars worth of trade dol
lar bullion held In the treasury at the present
time.
1t will be noticed that there is considera-
BILE initiation In the provisions Of this meas
ure. The purchase of the twelve million ad-
ditional ounces Of silver would put out abont
ten million dollars of circulating notes; the
issue Of notes for the trade dollars in the
treasury would put out about five and half
million more; and the clause authorizing ma
tiOnal banks TO issue notes up to the full
amount of their deposits OF government
bonds Qnstead OF Only to the extent of 90 per
cent as at present) would, if availed of, add
about fifteen million dollars more to the cir
culation. Thus the financial measure ought
to ue good for about thirty millions of dol
lars addition to the circulating medium. If
iDfiation is what Is needed the Senate bill
ought to stop the Fl Iancial strlngency.
The provision relating to the minimum de-
posit of United States bonds to secure the
circulation of banks having a capital stock
Of not more than fifty thousand dollars might
have In 1t measure OF contraction, how
ever. The circulation of the national banks
has for some time been of little profit to the
banks, and nearly all of them have been
drawing in their circulation as rapidly as
possible and TO as great an extent as allowed
by the lawful limit. During the five years
ending in October of this year. the aggregate
Of their circulation based upon deposits Of
about S125,OO0.OOO; although in the
same time the number of national banks In
the country has increa sed 839. AS business
Institutions the national banks are growing
steadily In popular favor, especially in the
West and South but as bar ks of circulation
they are decreasing In their Importance.
Lowering the amount OF the required deposit
would have tendency to reduce still fur
ther the bank circulation. perhaps to the OK
tent Of fifty million dollars. But clause OF
the bill prevents this reduction going on at a
faster rate than three million dollars a
month, which Is less than the monthly issue
Of notes paid for the silver purchased. An
advantage that would accrue to the govern
ment from lessening the requirements OF
bonds to be held by the banks would be that
in future purchases the Secretary of the
Treasury ia his work of retiring the debt, he
would have less competition in the market
from national banks, which are now requir-
ed by law to have certain amount of bonds
on deposit.
These are the important features of the
financial BILL" Its prospects of passage
seem to be as doubtful as its probable utility.