Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1900-03-14
ALL MONEY AT PARITY
WITH GOLD STANDARD.
MT. Gage, Secretary of the Treasury, Ex-
plains the Provisions of the New
Currency Law.

WASHINGTON, March 14.--Secretary
Gage made statement in explanation
of the provisions Of the financial bill, in
which he SAID in part:
The financial bill has for lis first object the
fixing Of tho standard OF value and the main
tanning at parity with that standard of all
forms of money issued or coined by the United
States. It reaffirms that the unit of vulue Of
the dollar, consisting Of 25 $40 grains OF gold
nine-tentbs fine, hut from that point 1t goes on
to make it the duty Of the secretary Of the
treasury to maintain all forms Of money issued
or coined at n parity with this standard. II
puts into the hands of the secretary ample
power to do that. For that purpose the bill
provides in the treasury bureaus Of issue and
redemption and transfers from tho general
fund of the treasury's cash sl50,0O0,0O in gold
coin and bullion to the redemption fund, that
gold to be used for tho redemption OF United
States notes and treasury notes That fund Is
henceforth absolutely cut out of and separated
from the cash balance in the treasury, and the
available cash balance will hereafter show q
reduction of $l50,0O0,000 from the figures that
have heretofore prevailed, This 100000 re-
demptiou fund Ia to be used for no other pur.
pose than the redemption Of United States
notes and treasury notes. and those notes SO
redeemed may be exchanged for gold in the
general fund or with the public, 30 that tho re.
serve fund is kept full with gold to the $50 0O0-
OOO limit.
The secretary is given further power II re
demptions go on 80 that the gold in this re-
serve fund is reduced below $l000O0,0O0 and he
is unable to build it up to the sl5O0OO,OOO mark
by exchange for gold in the general fund or
otherwise he is given power to sell bonds and
1t IL his duty to replenish the gold to the $780,
0O0,OOO mark by such means.
The "endless chain" is broken by provision
a. %
70 meet deficiencies In the current revenues.
The act provides for tho ultimate retirement
of all the treasury notes issued in payment for
silver bullion under the Sherman act. As fast
az that bullion is coined into silver dollars
treasury notes are to he retired and replaced
with nm equal amount Of silver certificates.
The measure authorizes the issue of gold
certificates in exchange for deposits Of gold
| coin, the same as Mt present, but suspends that
authority whenever and so long as the gold Ia
| the redemption fund Is below 1000 900 and
gives the secretary the option to suspend the
| issue OF such certificates whenever tho silver
| certificates and United States notes IN the gen
| ernl fund in the treasury exceed S60,0OOONp.
The bill provides for larger issue OF silver
certificates by declaring that hereafter silve,
certificates shall be issued only In denomina
| tions Of so and under, except US to 10 per cent
| of the total volume. Room is made for thi
larger use OF silver certificates in the way Of
Slnull DlilS ny uHbNIST pTuNlSlOU WHICH Wuke
IL necessary as fast MS the present silver certif
Gates of high denominations are broken up int,
small bills To cancel similar volume OF UniteC
States notes Of small denominations and re
| place them with notes OF $40 and upward
| Further room il made for the circulation o
small silver certificates by clause which per
| mits national banks to have only one'third o
thcr capital in denomination under $40.
One clause OF the bill which the public vii
greatly appreciate is the right that il gives T.
the secretary to coin any of the 1850 bulliol
into subsidiary silver coins up to a limit o
tlOO,OO0,0O0, There has for years been scar
rity of subsidiary silver during periods of nc
tive retail trade, but this provision will give tn
treasury ample opportunity TO supply all tn
subsidiary silver now in the treasury or here
| after received. Tho bill makes a continun
appropriation for paying the difference he
tween the face value Of such coin and tn
amount the same will produce In the new ooir
A distinct feature Of the bill is in referenc
to refunding the 8pcr cent Spanish war loar
the 2 per cent bonds maturing w 1907 and tn
b per cent bonds mnturing in 1904, total q
SS,a,0O0.UD into new 2 per cent Bonds Thes
new 9 per cent bonds will not he offered 70
sale hut viii only be issued In exchange for
equal amount, face value, Of old bonds Tn
holders Of old bonds will receive promium i
cash to compensate them, IN measure, for th
sacrifice Of interest which they make. Tha
cash premium will be computed ON n basis {
the present worth OF the old bonds at214 pc
cont aud viii be on April |, the date that tn
new 2 per cent bonds will bear, sl0S,6sbl for IN
~, Slll,G65 for tho II and sll001bi for each SIC
Of the 5s, This exchange win save tho govern
ment, after dcducting the premium paid, neal
Is t2s,0OO'0O0 II all the holders Of the old bond
exchange thoW for the new ones. Nation,
J banks that taie ont circulation based ON til
new bonds ara to bc taxed only one-half OF
= per cent on the average amount Of circulatio
outstanding, while those who have circulatio
based ON deposit Of old bonds willbc taxed,
at present, per cent.
There are some other changes in tho nations
banking act. The law permits national banl
with $4,000 capital 10 be organized in plnc
OF 5000 inhabitants or less whereas heretofoi
the minimum capital has been s50,VAi II nl,
!. permits banks 70 issue circulation on oil class
Z OF bonds deposited UP to the par valre Of Il
! bonds, instead of % per cent of their face
heretofore, This ought 10 make an immedia
I Increase IN national bank circulation of som
I thing like s2iOO0,OoD es the amount Of hon
now depo'itod 20 secure circulation Is abo
ts42Oo,o0oo' II the price Of the q is n