The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-11-29
BILL FIXES The
GOLD STANDARD
Provides for Selling Bonds to
Maintain Reserve.
NO TAX ON CIRCULATION
THAT ON ISSUE OF NATIONAL
BANKS REPEALED.
MAY ISSUE TO PAR WITH BONDS HELD
National Banks May Be Organized With a
Capital of twenty-five Thousand DOL
lars in Towns of Two Thous-
and Inhabitants.


Washington. Nov. 2S.-Copies of the
bin and report prepared by the Republi
can caucus committee, which met at
Atlantic City last spring. were mailed
this evening to the Republican members
of the House. The purpose of the bill
is to remove any doubt that may exist
as to the character of the standard 1t
contains a number of distinct PROPOSE
tons
/. The standard unit of value shall be
the gold dollar.
?. United States bonds. United
States notes and Treasury notes, shall
be paid in gold. and all other public and
private obligations shall be paid in con-
formity with the standard.
3. The establishment of division of
issues and redemption in the Treasury
10 separate the note issue from the fis-
cal operations of the department and
the creation of gold reserve equal to
twenty-five per cent. of the outstanding
United States notes and Treasury notes.
4. The sale of 3 per cent. gold bonds
to maintain the gold reserve.
5. Gold coin may be exchanged for
any other money, when necessary to
maintain the parity and United States
notes and Treasury notes redeemed in
gold shall not be disbursed except in ex-
change for gold.
g. Subsidiary silver may be coined
from any silver bullion purchased under
the act of July 18th, 1890. and Treasury
notes equal to the cost of the bullion
contained in such coin shall be can
celled
Z. All Worn and uncurrent subsidiary
Silver coin may be re-eoined.
8. Silver certificates shall be limited
in denominations to 81, 81, and So.
o. National banks may issue circula-
fion to the value of the bonds deposit
ed by them.
10. The tax on national bank circu-
lation is repealed and a tax of one
fifth Of one Der cent. per annum is placed
upon the franchise of the banks as
measured by their capital, surplus and
undivided profits.
H. National banks may be organized
With capital of twenty-five thousand
dollars in towns of two thousand in
habitants.
The fact is pointed out that the Treas
nry at the beginning of October had a
met gold reserve of more than $3.50
100000. that there lis more gold in the
United States now than ever before and
that the present conditions are most ia
yorable. and the time most opportune,
for the clear and unequiyocal adoption of
the gold standard IF under all existing
conditions the United States shall clear
", by law, adopt the gold standard, 1t
will pass to the new condition with even
less friction than was experienced by
the redemption of specie payments.
The mechanism of the new division of
issues and redemption is explained and
it is declared that the different funds
referred to such a division, as they stood
ON September last. are as follows:
Gold coin and bullion, represented
by outstanding gold certificates. $133,
501, 119.
2-United States notes, represented by
outstanding currency certificates $780,
100000.
3-Silver dollars, represented by out
standing silver certificates, S403, 1877 ,504
4-Silver bullion, represented by out
standing Treasury notes, S91, 167,2S0.
5-Gold coin and bufiion, equal TO one
fourth of the United ,ates notes 1885,
6S1.01G) and Treasury notes (S91, 167,-
2S0) outstanding, 800, 462,074.
The first four items enllInerate the spe-
cial deposits dedicated to specific pay
ments. As these obligations are met,
the deposits are correspondingly reduced.
The scope and purposes of the provi-
sions for maintaining the standard by
the sale of bonds and the exchange of
money are thus set forth by Mr.. Over
street:
l..
protection to the gold reserve, it is al
ways subject to encroachment in expen-
ditures to meet the general expenses of
the Government. Whenever such en-
croachment appears probable, fear has
arisen that the Government may not be
able to meet its demand obligations, and
rum upon the reserve for the redemp-
tion of the demand notes has followed.
This situation is responsible for the so
called endless chain" BY separating the
reserve fund from the general fund and
prohibiting its use except for redemption
of United States notes and Treasury
notes the dangers to which it has been
so greatly subjected will bes removed.
These demand notes are being redeemed
in gold now, and always have been, and
no additional burden is imposed upon the
Government. 1t is sought to simplify
and legalize the practice, and create a
division in the treasury where the whole
business Of issuing and redeemfng notes
may be transacted, and to establish com
plete confidence in the redemption of our
demand obligations
Section 4 of the bill seeks to provide
complete safeguard to guarantee the
permanent maintenance of the gold
standard. by authorizing the Secretary
of the Treasury whenever it is necessary
for such maintenance to issue and sell
bonds OF the United States, payable in
gold coin, ard for the exchange of gold
coin for any other money issued or coin
ed by the United States, should the Sec
rotary of the Treasury deem such ex-
change necessary in order to maintain the
parity and equal value of all the money
of the United States.