Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-23
Mr.. JONES' FINANCIAL BILL
How He Proposes to Solve the Present
Difficulty in the Treasury.
Three Per Cent Bonds Payable In
Coin and Free Coinage of Silver
Provided For.

. Senator Jones today introduced his finan-
cial and currency bill, which was promised
ten days or two weeks ago. The bill is as
follows:
Authority is given to the Secretary of
the Treasury to issue bonds of the United
States to the amount of $500,0O0,O00. paya-
BILE in coin of the present standard value
and bearing interest at the rate of :, per
cent, not to be sold at less than par. The
bonds are to mature thirty years from date
and be redeemable at the option Of the
government after twenty years. The Sec
retary Is authorized to use the proceeds OF
the sale of the bonds to defray current ex-
penses of the government and for the re-
demption of United States legal tender and
treasury notes issued under the act Of July
IA, 1890. The bonds are to be of the de-
nominations of $50 and $50 and multiples OF
those sums, at the option of the purchas-
ers. The bonds are to be free from all
taxes. 1t is declared to be the intention of
tho act to give full opportunity for general
subscription for the bonds. Payment for
the bonds may be made in gold coin. but
the Secretary is allowed to accept United
States notes and treasury notes issued TN
der the act OF 1890
Section =. National banking associations
are authorized and permitted to issue cir
culatiEg notes to the par value of United
States bonds deposited with the Secretary
OF the Treasury, and the tax on such cir
culation is reduced to one-fourth Of l per
cent.
Section 3. Section nine of the act Of
July II. 1882, is repealed and hereafter no
national banking association shall retire lts
circula ton without written authority from
the Secretary of the Treasury. So much Of
section twelve of the act OF 80 as directs
the Secretary of the Treasury to receive
deposits of gold ccin and to issue certlh-
Gates therefor is also repealed.
Section 4. National banking associations
desiring to retire the whole or any part OF
their circulating notes are required to de-
Dosit gold coin equal to the amount or
notes to be retired and at all times keep
on deposit with the treasurer of the United
States in gold coin a sum equal to five per
cent of their outstanding circulating notes,
to be used fer the redemption of such
notes.
Section 5. Not exceeding one-half of the
lawful reserves on account of deposits to
be kept by national banking associations
may consist of United States bonds is
siled under this act.
Sections G and provide for the displace-
ment Of all national bank and United
States and treasury notes of denominations
OF less than $40 with silver certificates, the
explicit declara ton beirg made that 1t is
the intention of the act that neither the
Treasury Department nor national banks
shall issue or keep in circulation any notes
other than silver certificates of a less de-
nomination than $40.
Section s. The Secretary OF the Treasury
is directed to redeem and cancel and not re-
issue the United States and treasury notes
whenever and as fast AS the aggregate cir
culation of United States legal tender notes,
treasury notes, silver certificates and ma
tional bank nores shall be in excess of the
aggregate amount of these forms OF paper
money in circulation at the date OF the
passage of the act.
Section o. The Secretary of the Treasury
is directed to receive at any United States
mint, from any citizen Of the United States,
silver bullion of standard fineneSs and coin
it into silver dollars OF 4l2ls grains each
The seigniorage on the bullion IS to belong
to the United States and is TO be the differ
ence between the coinage value and the
price of the bullion in London on the day
the deposit is made.
The Secretary is required to deliver to
the depositors of such bullion standard sill
yer dollars equal iii amount to the price OF
the bullion, and whenever these CONS shali
be received into the treasury, certificates
in denomindt tions of less than $40 may oe
issued on them, as now provided
The important changes made in the bill
making the bonds payable in coin instead
of gold, increasing the rate of interest
from 2 IL to 3 per cent and providing Tor
the displacement of national bank and
II easury and United States notes of less
than $40 by silver certificates instead of
$40 as at first proposed. The first con-
cession was made to the silver men ana
the two others to the bond advocates and
those who wish to restrict the use of sill
Ver
1t is understood that in introducing the
bill today Mr.. Jones abandons to a certain
extent his original position, that he would
not introduce the bill unless he could first
be reasonably assured Of it's passage, but
that he has at last decided to put it in
and allow it to take the chances just as
any ordinary measure before Congress
must do. He also desires. it is understood.
to forestall the proposition which it is
be made later in the session to press
through authority for a bond issue without
other legislation.