Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1900-03-29
WHAT THE FINANCIAL BILL MEANS.
Secretary Gage Endeavors to Explain the
Measure in Popular Manner.


WAslIlNGToN, March 20.-Secre-
tary Gage made the following state
ment in explanation of the provis-
ions of the financial bill which
passed the House March the 18th:
cit rcatfirms that the unit of value
is the dollar consisting of twenty
five and cight-tenths grains of gold,
ninc-tcnths fine, but from that point
it goes on to make it the duty of the
Secretary Of the Treasury to main.
tain all forms Of money issued or
coined at parity with this stun
dard. 1t 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 it transfers from
the general fund of the trcasury's
cash Sl50,0OO,000 in gold coin and
bullion to the redemption fund, that
gold to br used for the redemption
of United States notes and treasury
notes. That fund is henccforth
absolutely cut out and separated
from the cash balance in the treasury,
and the available cash balance will
hereafter show a reduction of $780,
100000 from the figures that have
heretofore prevailed. This $780,
00D,Q00 redemption fund is to be
used for no other purpose than the
redemption of United States notes
and treasury notes, and those notes
so redeemed may be exchanged for
, gold on the general fund or with the
public, SO that the reserve fund is
kept full of gold to the Sl50,000,O00
limit.
"The Secretary is given further
power. If redemptions reduce the
gold in the reserve fund below
$l0O,000,000, and he is unable to
build it up to the $l50,000,000 mark
by exchange for gold in the general
fund or otherwise, he is given power
to sell bonds, and it is made his duty
TO rcr(enish the gold to the $780,
100000 mark by such means.
"Fhc 'cndlcss chain is broken by
a provision which prohibits the use
OF notes SO redeemed to meet def
ciencics in the current revenues.
The act provides 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 be
retired and replaced with an equal
amount Of silver certificates.
"Thc measure authorizes the issue
of gold certificates in exchange for
deposits of gold coin, the same as at
present, but suspends that authority
whenever and so long as the gold in
the redemption fund is below $780,
100000, and gives to the Secretary
The option to suspend the issue of
such certificates whenever the silver
certificates and United States notes
in the general fund of the treasury
exceed &G0,000,000.
"rhc bill provides for a larger
issue of silver certificates, by dcclar-
ing that hereafter silver certificates
shall he issued only in dcnomina-
tions of ten dollars and under, cx-
ccpt as to 10 per cent of the total
volume. Room is made for this
larger ns" Of silver certificates in the
way Of small bills. Furthermore
national banks are allowed only one
third of their capital in dcnomina-
tions under ten dollars.
"Onc clause of the bill which the
public will greatly appreciate is the
right that it gives to the Secretary
to coin any of the 1890 bullion I'M
subsidiary silver coins up to a limit
OF &lOO,OOO,000. There has for
years been scarcity Of subsidiary
silver during periods of active retail
trade, but this provision will give
the treasury ample opportunity to
supply al the subsidiary silver that
is needed.
ga distinct feature is in reference
to refund ing the 3 per cent Spanish
war loan, the . per cent bonds ma
turing in 1907 and the 5 per cent
bonds maturing in 1904, a total Of
SS3o,OOO,oOo into new 2 per cent
bonds. These 2 per cent bonds will
not be offered for sale, but will only