The record-union., 1897-12-17

year This power would not be eX-
erclsed except at rare intervals, but 1t
would have a steadying effect from the
knowledge it gave the market that the
power existed. With this power to bor-
row in case of need and the measures
provided by his bill, Mr.. Gage said, he
would just as lief run the Government
finances as to run any bank, as there
would be no more responsibility or haz-
ard
After this initial statement 1t was
deemed advisable to read the Secre-
tary's bill in detail, and discuss it by
sections
THE BILL IN FULL.
The bill submitted is as follows:
A bill to provide for the refunding of
the national debt, for establishing a re-
demption fund, and division of issue
ana redemption in the treasury, and to
modify existing laws respecting ma
tlonal banks and for other purposes.
BE it enacted, that there be estab-
llshed in the Treasury Department, as
part Of the office of the treasury Of
the United States, a division to be des-
lgnated and known as the Division of
Issue and Redemption, to which shall
be assigned, under such regulations as
the Secretary of the Treasury may ap-
prove, all records and accounts relating e
10 the issue, redemption and exchange,
as hereafter provided, of the several
classes of United States paper money.
There shall be transferred from the
general fund in the treasury of the
United States and taken up on the
DOCKS or said division as a redemption
fund the sum of $50, 100000 in United
states gold coin and bullion, and such
further sums of standard silver dollars
and silver bullion purchased under the
Act Of Congress approved July IA,
1871. as shall equal the silver certifi-
Gates outside the treasury and treasury
notes of 1890 outstanding on the date
when this Act shall take effect: and
thereafter the gold and silver coins and
bullion hereby transferred from the
general fund in the treasury as herein
provided shall be increased or dimin-
ished, as the case may be. in accord
ance with the provisions of this Act,
and in no other way
Section 2-That all United Estates
notes, treasury notes of 1890 and silver
| certificates presented for redemption
shall be redeemed from the redemption
fund herein provided, in accordance
with the terms of existing laws, but the
notes and certificates so redeemed shall
be held in and constitute a part of said
fund, and shall not be withdrawn from
said fund, nor disbursed except in ex-
change for an equivalent amount for
the coin in which said notes or certifi-
Gates We're redeemed: but to enable the
tn, Of ha
oughly to carry out the provisions con-
tanned in this Act, he is hereby author
lied to exchange any of the funds in
the division of issue and redemption for
any other funds which may be in the
general fund in the Treasury Depart
ment: provided, that nothing in this
Act shall be construed as repeating that
provision of the Act approved July IA,
1890, which provides that there shall be
outstanding at any time no more and
no less Of the treasury notes authorized
by said Act and the silver bullion and
standard silver dollars coined there and
held by the treasury purchased by said
notes
Section 3.-That the Secretary Of
the Treasury be and hereby is author
lied to receive at the treasury any Of
five per cent bonds of 1904 and the
three per cent. consols of 1907, issued
restrictively under the Act approved
January IA, 1915. and the Acts ap-
proved July IA, 1870, and January IA.
1919, and the Acts approved July IA,
1870 and January 20, 1878, and to issue
in exchange therefor coupon and reg
istered bonds of the United States in
such form as he may prescribe in de-
nominations of $50 or some multiple of
that sum bearing interest at the rate
Of ~ per centum per annum, payable
semi-annually. and redeemable after
ten years at the treasury at the pleas
ure Of the United States; and the bonds
hereby authorized shall be PAYABLE.
principal and interest, in United States
gold coin Of the present standard value.
and shall be exempt from all taxation
by interstate. municipal or local author
ity; provided that none Of the outstand-
ing bonds shall be received at a valua-
tion greater than their present worth to
yield an income of two and one-half
per centum, and that the bonds hereby
authorized shall be issued at not less
than par.
Section 4-That the bonds authorized
by this Act and other bonds of the
United States may be deposited with
the Treasurer Of the United States as
security for the circulation notes of ma
tional banking associations, and any
national bank in which he may deposit
the bonds herein authorized to be de-
posted as security for it's circulating
notes shall be entitled to receive from
the Comptroller of the Treasury and to
issue such notes TO an amount equal
10 the face value Of such bonds: pro-
vided that the aggregate amount of
bonds deposited by any n1Sronaf bank
ing association under any law shall not
exceed the amount Of IT'S capital pro-
vided. further. that nothing herein con-
tanned shall be construed to modify or
repeal the provisions of Section 516 and
Section 511 of the Revised Statutes, au-
thorizing the Comptroller Of the Cur
rency TO require additional deposits of
bonds or Of lawful money in case the
market value Of the bonds held to So
cure the circulating notes shall fall
below the par value of circulating notes
outstanding, for which such bonds may
be deposited as security
Section 5-That any national banking
association whose deposit of bonds is
less than the amount Of its capital may
deposit with the Treasurer OF the Unit
ed States under such regulations as
the Secretary Of the Treasury may ap-
prove, United States notes. treasury
notes Of 1890 an7 silver certificates,
and shall be entitled to receive from
the Comptroller of the Currency and TO
issue an equal amount of it's circulat-
ing notes 40 or