The times. [volume] (Richmond, Va.) 1890-1903, 1900-03-14
Fife COMING
TO RICHMOND.

:
to- RICHMOND.
Continued from First Page)
gold in the general fund or with the
public, SO that the reserve fund is kept
full with gold to the $50, 100000 limit.
1.-THE Secretary is given further
power If redemptIons REFUGE the gold
reserve fund below sloo, 100000. and he is
unable to build it up to the $50, 900, 900,
mark by exchange for gold i'll the gen-.
,eral fund or otherwise, he is given.
power to sell bonds, and it is made
his duty to replenish the gold to the
s15o. 100000 mark by such means.
1.-THE endless chain is broken by a
provision which prohibits the use Of
notes SO redeemed to meet deficiencies
in the current revenues. The act pro-
vides for the ultimate retirement of all
the Treasury notes issued in payment
for silver bullion under the Sherman
act. AS fast as that bullion is coined
into silver dollars, Treasury notes are
to he retired, and replaced-t,w with an
equal amount of silver certificates.
1.-The measure authorizes the issue of
posts of gold coin. the same as. al pres
ent, but suspends that authority when
ever and so long as the gold in the re-
demption fund is below 500, 900, COO, and
gives to the Secretary the option to
suspend the issue of such Ger Utica ties
whenever the silver certificates and
United States notes in the general fund
of the Treasury exceed s6O,00O,6oo.
1.-The bill provides for larger issue of
silver certificates by declaring that here
after silver certificates shall be issued
only in dcnomina tons of ten dollars and
under, except as to 10 per cent. of the
total volume. Room is made for this
larger use of silver certificates in the
way of small bills:- Furthermore, ma
tional banks are allowed only one-third
of their capital in denomination under
ten dollars. One clause of the bill which
the public will greatly appreciate rs the
right that it gives to the Secretary to
coin any of the 1850 bullion into subsid-
larry silver coins up to a. limit of 100000.
There has for years been scarcity OF
subsidiary silver during periods Of active
retail trade. This provision will give the
Treasury ample opportunity to supply
all the subsidiary silver that is needed.
"a distinct fea ture is in reference to
the refundinS tine per cent. Spanish
war loan, the per cent bonds maturing
in 1907, and the 5 per cent.bonds ma
turing in 19o4-a total of ssS9.OCo, Oo0-into
new Q per cent. bonds. These new . per
cent. bonds will not be offered for sale,
but will only be issued in exchange for
an equal amount. face value, of the old.
bonds The holders of old bonds will
receive a premium in cash to compen:,
safe them in a measure for the sacrlhce
of interest which they make. The cash
premium will be computed on a basis OF
the present worth of the old bonds at
o A o,,1
the date that the new 2 Per cent bonds
will bear sos. 6S51 for the IS, s111.6765 for
the As. and s11O.0751 for each 500 Of the
SIS This exchange will save the gov
eminent, after deducting the premium
paid nearly s23,o0ooo9, if all the holders
of the old bonds exchange them for the
new ones. National banks that take out
circulation based on the new bonds are
to be taxed only one-half Of 1iper cent.
of the average amount of circulation
outstanding, while those who have cir
culation based on a deposit of old bonds
will be taxed, as at present, one per
cent Where heretofore the minimum
capital was $4,000 national banks with
$4,000 capital may now organize In places
of 5000 inhabitants or less.
at also permits banks to issue circu!a-
ton on all classes Of bonds deposited UP
to the par. value OF the bonds. instead OF 80
per cent of their face, as heretofore. This
ought to make an immediate Increase in
national bank circulation Of something
like 100000, as the amount of bonds now
deposited to secure circulation is about
S242, Ooo. 900. # the price of the new twos
is not forced so high in. the market that
there is no profit left the national banks
in taking out circulation we may also
look for a material increase in national
bank circulation based on additional de-
posts of bonds.
National banks are permitted under4
the law ITO issue circulation up; to an
amount equal to their CAPT tai. The total
CAPT tai of ell national banks is S6l6-5
ooc 0oo:N the total circulation outstanding
is 1858, 600. OcA There is, therefore. a pos.
sibility of an increase in circulation of
$50. 0Oo,OO0 although the price of the new
2 per cent bonds, as already foresllad-
owed by market quotations in advance of
their issue, promises to be so high that
'.he profits to the banks in taking out
circulation will not be enoug'tll to make
the increase anything like possible
total''
Comptroller Dawes, when asked what
his course would be in connection with
requests for national bank charters under
tho new law, said:
I'm view Of the large number of ap-
plications for charters Of small banks,
shall institute special inquiry, in addi-
ton to the usual examination as au-7
thorized by section $3.50 Of the Revised
Statutes of the United States. wherever
there is the slightest ground to suspect.
the existence of improper motives on the
part of those applying for charters under
the national system
This course will also be followed in the
case of State banks applying for leave
10 convert themselves into national
ranks. = $5.j ss 81
New Orleans Races.