The morning call., 1893-08-21
bank notes and send the measure to the

House for its concurrence.
People who expect the House to adopt
this proposition in toto and with prompt
fude are likely to be disappointed. 1t
will give rise to prolonged debate. and the
silver men are preparing 10 meet the
VOORHEES, bill with even more liberal
proposition. They will propose a meas
ure which. instead of swelling the national
bank currency by S19.0O000O. as contem-
plated by the Voorhees, bill. would in
crease this circulation SIS, 000,000 and at
me same time satisfy the demands of a
very strong element of the American
people by making it impossible for
national banks to increase or diminish at
will the volume of their circulating cur
rency.
The measure which Is being discussed
by the silver men as counter proposition
to the VOORHEES, bill has been drawn by
Representative Bailey of Texas, an ardent
bime etallist, who is known in the camps of
the free-cOinage men to be the real author
of the free-coiDage bill now pending in
the House as proposition to be offered by
Bland as a substitute to the Wilson repeal
ing bill.
The title of Bailey's national bank bill
will be as follows: "a bill TO increase the
currency and to provide for the redemp-
tion thereof, and Tor other purposes"
Section l reads: From and after the
passage of this act any bank organized
under the laws of the United States, and
having on deposit with the Treasury OF
the United States bonds bearing interest
at the rate of 4 per cent per annum, may
surrender said bonds to the Treasurer of
the United States TO be cancelled, and to
receive in lieu thereof an amount of ma
tiOnal bank notes, which, added to the
amount of notes heretofore issued to said
bank shall be equal to 120 cents for each
dollar specified in said bonds.
Section 2-Any bank which shall surren-
der its bonds. in accordance with the first
section Of this act, shall thereafter be and
remain exempt from the tax OF l per cent
now required to be paid upon its circula-
ton.
Section 3-The Treasurer of the United
States shall return to any bank which
has surrendered its bonds In accord
ance with the first section of this act the
amount which may be in the treasury to
the credit of such bank on account of its
redemption fund.
''Section 4-The United States hereby
assume all notes issued under the first Sec
ton of this act, and all notes heretofore
issued by such banks as shall surrender
their bonds in accordance with the first
section OF this act, and, in order to provide
for the redemption OF said notes, the Sec
retary of the Treasury is hereby directed
to have coined into standard silver dollars
all silver bullion now in the treasury,
except so much thereof as may be sufficient
to redeem the coin notes issued under the
act of July IA, 1890, entitled An act direct
ing the purchase Of bullion and the issue
of treasury notes thereon aud for other
purposes and said silver dollars shall be
reserved as special fund to redeem such
said notes as may be presented for redemp-
rion.
''Sec. 8. The additional notes issued to
a1v bank unde- the first eesffoa 5F Ihss A.
shall be uniform in all respects with the
notes heretofore issued to the same bank,
and may be counted as part of the lawful
reserve which the law requires national
bank to hold, and said additional notes
shall be receivable the same as is pro-
vided by law for notes heretofore issued.
and when received by the treasury shall
be reissued the same as is now provided
by law for United States notes"
Bailey said that his proposition would
increase the circulation over S51, ,OO0, 600
directly, and would indirectly add over
100000 more by releasing sums held in
the treasury for redemption purposes,
making the total increase more than
SIS, ,000,000 Besides this it would save the
taxpayers Of tue country over Sc, OOO. 600 in
annual interest. Banks ic every part of
the country would find it profitable to sur
render their bonds and take this addi-
tonal circulation, but it would be es-
pecially profitable to banks in those
sections where the rate of interest IS
highest, and these are the very sections
which stand most in need of this increase.
MY bill, be continued, Twill also util-
lze all the bullion now in the treasury ex-
cept what is necessary to redeem notes
issued under the Sherman act. The sur
plus is something like S6O.OOO.O00 which
Will constitute a coin reserve fund of
about the same proportion as is now held
Tor the redemption of green backs"
Senator Voorhees,, during his speech on
the financial question in the Senate on
Tuesday next, will read letter from Sec
rotary Carlisle to show the difficulties In
the way of the free coinage of silver at a
changed ratio
The letter is as follows:
Hon. Daniel ". Voorhees,, United States
Sendte-DEAR SIR: Referring to our con-
versaton relative to the probable cost in
cident to change from the present coin
age ratio between gold and silver to 16
for standard silver dollars and / TO 14.a5
for subsidiary silver to a ratio of l to %.
you are respectfully informed that the
number Of silver dollars coined since 1878
aggregates 1892, $50 Without anv AL
lowance for abrasion and loss incident IN
the melting of the same, the coming yalue
of these dollars at the ratio of to 20 yould
be $685. DO, 1852 or S64. 10, 22S less than their
present value. To recoin these dollars ar
ratio of to 20 would require the addition
of 81, 1861, 700 ounces of new bullion. which
at the average price paid for silver under
the act of July IA, 1890, 93A cents. wouId
cost SIS, S83, 700. In addition to this esti-
mate there would be loss from abrasion
and in melting these dollars of at least
S3O00,000, which amount, together with
the difference in th e face value of the coins
1884. 110, ,2S3), would have to be reimbursed