The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-03

der Transactions-Fises the Gold Reserve
Arbitrarily at $50, 600. O0O-Providcs for
Retirement and Cancellation of Treasury
Notes-Nationai Banks May Increase
Circulation to Full Amount of Bonds.
WASHINGTON. Dec. 2-The Republican NOM
bers Of the Senate Finance Committee met In
the committees room at the Capitol at
1880 this morning and completed tho prepara-
ton Of a currency bill to be introduced In the
Senate on the first business day by Senator
hldrich Those present at tU-day's meeting
we're Mr.. Aldrich OF Rhode Island. Chairman:
Mr.. Allison OF Iowa. Mr. Plat of Con-
necticut. Mr.. Wolcott OF Colorado and Mr.
Burrows OF Michigan. Mr. Plat OF New
York was the only Republican member alb
sent Secretary Gage was In the committee
room by invitation for some time and the
leading features OF the proposed bill were dis
cussed with him. Senator Aldrich brought
with him from Rhode Island yesterday a
rough draft OF the m oasurc. ON bodying the re-
suits Of the conferences OF the committee held
last summer. and some Of the recommended
lions made TO the committee by Secretary
Gage. Only slight notifications In this draft
were suggested at to-days meeting. and late
this afternoon Senator Adrich made new
draft
In general the Senate bill represents in a
much larger degree the ideas OF tho Indianap-
oils Monetary Convention and OF Secretary
Lyman J. Gage than the bill OF the House eau
Gus Committee does. In fact some Of the ideas
that were spurnrd by tho Caucus Committee
appear very consricuously In the Finance Com
mittee's measure. The bill declares in terms
quite as clear IA those Of the House bill for the
gold dollar as the standard Of value. In fact
the title OF the bill sets forth that one OF
obiapta a the M the ny
istinR standard It differs radically from
the House bill however. in regard to the gold
reserve fund. fixing the am cunt OF the fund ar
bitrarily and constantly at fl5O.OOO.OOO. A
member OF the committee apparently ex-
pressed the sentiment Of his colleagues to-
night when he said that he believed the gold
reserves should be large enough 20 place the
ability OF the Government to make redemp-
lions beyond question. under any and
all circumstances that may arise. This
senator did not thoroughly agree with the
criticism that the House bill ia ambiguous or
defective in its provision relating TO
the gold reserve. but he believed that
the Caucus Committee meant TO make the
reserve 70 per cent, OF outstanding notes.
according to the amount OF these notes a. they
may vary from day TO day. He maintained.
however. that the amount OF gold held in re-
serve should not lie fuctuatng. II notes
should I've retired In considerable amounts the
gold fund would become too small. The Som
ate Committee did not favor. therefore. the
percentage plan provided in the House
measure The bill makes II the duty 81 the
Secretary Of the Treasury to sell bon Ia when
ever the gold in the reserve fund falls below
800. 100000 In order to Place the fund at the
maximum amount OF Sl5U.OOO.oO0
Provision IL made for the retirement and
cancaliatio OF Treasury notes a. rapidly "a
standard silver dollar. IRE coined under the
acts OF 1880 and 1919 from bull,on purchased
under the act OF 1890. silver certificates to h.
issued uron the cancellation OF the Treasury
notes against silver dollars 80 coined National
banks have by this bill the privilege Of in
crcasiug their circulation to tho full amount u
the par value Of the 2 per cent bonds
deposited. and the right IL reserved to
the Government to demand an additional
amount OF money or hond- whenever the mar
kot value ~ hose outstanding shall he below
the par VII ~. NJ the notes In circulation. No
bank In TO I've allowed 20 circulate notes in
greater denomination than $40 and all crrula-
ton il to be lah'e to an annualtax OF one-half OF
per cent. No attempt was m ade BY the nance
Committee To provide for the retirement Of the
RrcenhRcks. Some memters OF the committee
hrr Individually In favor OF refuninR them by
the use OF . per cent bonds.
N'n' lNIN't III tne HOUSE tHN'HS' n
hill l. carefully avoided n the Senate measure.
This II the provision which declares thnt
although oil ob!ign ons. both public
and private. shall be paid In gold. yet nothing
In the bin shall affect the legal-tend"r value OF
tn" silver dollar. A senator said tonight that
IL this provision OF tha House bill meant any
thing II meant that AL obligations must be
paid In gold unless you want a. use something
else" The senate b i makes gold the requisite
OF legal-tcnder tran actiuns. Gold certificates in
denominations oi $50 or less are TO he sued.
except when the god fund shNll fall below
sl0O.OOO.0o0. when II Is to be suspended. one
:" o denomna,ions Of $50 or less. The SEQ
retar 81 the Treasury may issue such c"rtln-
Gates in dsnomIna!iIins OF $1,000. nHynnle to
is repeuted.
one Of The most radical provisions Of tho
rounding Ihr nuhllc debt: This object has
ever since the adjournment OF the last Con-
gress. The plan finally agreed on today Ia hat
ior rri"ndng into per cent thirty Donds
all the Interest bearing loans o. the United
hi,iun dollars II was this feature Of the hill
thai formed the principal subject Of discussion
Will" Secretary Gage was III the committee
The House Caucus Committee that prepared
has decided de- to max" one important Chang" /"
the M, assure. and It l. regarded that others
will either be mad before the measure is in
troduced in the House. or the trainers OF the
bill will intro luce amendments inter. The
statement WAS made to-day h. Repr"se.tatiVe
payne. II monde Of tho Caucus mttee. that
the defect in the bill VII ch has been pointed
Iut Affecting the main ,enance Of the gold re;
serve will b. corrected at once. Az the iii
stands now, II is.proytdcd that the duty OF the
Secrctar, Of the Treasury s.a'l be 70 keep tho
cent. Of tho volume OF notes now outstanding
This provision takes no account OF the amount
Of notes that vii bc retired ! nll The notcs
should be paid In and redeemed. bonds would
probably lave to BE- sold To make M the ofigl-
nal % per. cent. The bill 1t IL true. leaves the
selling OF bon IL 10 the discretion oil the Score
tary, Tut Il il recognized that the selling ~
bonds for this purpose Ia not desirable. aud IL
not Contemplated.
several leaning Republican memhsrs who
are especially interested In the proposed legiS-
lation have called attention 10 he fact that the
% per cent, revision, since II takes no account
Of notes 10 I've retire :, means that an arhi-
reserve. Since the amount al notes il now
S4Ni.ONQOoO. the go' rescTyr,, under this
proposed law, would be Oa.O0o.00O, and
woild have to he kent there. even 4 every
dollar OF the notes should be retired. The AR
Rumcnts OF these representatives. among