The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-02-26
GOLD STANDARD BILL.
Its Features Pertinently Discussed by
Representative Overstreet.


New York, Feb. ga special to the
Herald from Washington says:
Representative Overstreet, of Indiana,
who has charge of the financial bill in
the house, discussing the merits of the
measure as agreed upon by the con-
ferees, said:
1T establishes the gold standard be-
yond dispute, with every proper safe
guard. 1t not only defines the gold
standard, but it requires the main
tenance of all forms of money at a
parity with that standard, and imposes
upon the secretary of the treasury the
mandatory duty of maintaining that
standard. The absolute separation OF
the trust funds to be held IN the cl-
vision of issue and redemption from the
fiscal operations of the government Will
prove a great educator IN that 1t viii
demonstrate in a simple manner that
a certificate is merely the evidence OF a
fund which is held in trust by the
government to be opened on demand TO
it's holder.
THE establishment of an ample re-
serve fund, with the safeguards which
are provided to prevent the withdrawal
of greenbacks and treasury notes when
once redeemed to be again presented LOT
the purpose of Withdrawing gold, thor
oughly intrenches the gold standard
In my opinion the unequiVocal eStab-
lishment OF the gold standard Will be
followed by stability in all business IN
which the country is Interested 1t does
away with all the fear and doubt
which confused business during the
last few years and establishes a UNI
form basis of values on which all busl-
ness can rely. Contracts and settle
ments of all kinds will be adjusted at
once to this standard, and business con-
ditions Will be greatly improved there
by. as stability is an essential element
in all business affairs in which time
and distance are taken into account.
I believe the refunding plan con-
tanned in the bill is sound economically,
and that it will work in practice 1t
is true that the rate of interest is low
er than that of any other government
has been able to fund its debt but in
view of the fact that it is proposed at
the same time that the gold standard
is being established and at a time when
the country is prosperous, think the
government will have little trouble in
putting it into operation
THE high premium on the part of
the bonds and the high tax on national
| bank circulation prevent any profit on
circulation at present Under the plan
proposed banks are permitted TO sub
stitute for their present high rate
bonds bond of comparatively stable
value, and at the same time they are
allowed to issue their note circulation
to the par value of the bonds. with
reduction of the tax. It is expected that
the banks Will promptly make the
change For this reason it is believed
that within a few months very con-
siderable proportion of the bonds now
held to secure circulation will be sur
rendered for two per cent bonds.
Authority to establish banks of $685.
OOO capital in small towns will no doubt
result in the establishment of small
banks which will undoubtedly use the
new two per cent bonds as the basis of
their circulation.
In my judgment at least two-thirds
of the $3.50, 900, 900 bonds subject to re-
funding viii be surrendered in exchange
for the new two per cent bonds within
a period which will be surprising to the
public. Such a change will naturally
result in an increased volume of ma
tional bank circulation. This increased
volume will. in my judgment, amount
to 800, 900, 600 in twelve months. The
rapidly increasing business of the coun-
try will absorb this increase without
difficulty although / believe a lower
interest rate money will also result.