Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1900-03-15
THE FINANCIAL BILL.
Secretary Gage Explains the Pro
visions Of the Measure.
CIRCULATION OF NATIONAL BANKS.
Comptroller Dawes Speaks About the Re-
quests for National Bank Charters and
Says His ONCE Will Endeavor to
Prevent Fraud.

| Prevent Fraud.
Washington, March 14.--Secretary
Gage yesterday made the following
statement in explanation of the pro-
vision of the financial bill, which
passed the house: "rhe financial
bill, which now awaits only the sigma
ture of the president to become law,
has for its first object what its title
indicates, the fixing of the standard
of value and the maintaining at a
parity with that standard of all forms
of money issued or coined by the
| United States. 1t reatiirms that the
unit of value is the dollar, consisting
of % $40 grains of gold 0-10 fine,
but from that point it goes on to
make it the duty of the secretary Of
the treasury to maintain all forms of
money issued or coined at parity
with this standard. 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 transfers
from the general fund of the treas
ury's cash S15O,OO0,O0O in gold coin
and bullion to the redemption fund,
that gold to be used for the redemp-
ton of United States notes and treas
ury 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 reduction of $780,
100000 from the figures that have
heretofore prevailed. This $15O0OO,-
900 redemption fund is to be used for
no other purpose than the redemption
of the United States notes and treas
ury notes, and those notes so re-
deemed may be exchanged for gold in
the general fund or with the public,
so that the reserve fund is kept full
with gold to the $15O,OO0,OOO limit.
"rhe bill provides for a. larger issue
of silver certificates by declaring that
hereafter silver certificates shall be
issued only in denominations of $40
and under, except as to ten per cent.
Of the total volume. Room is made
| for this larger use of silver certifi-
Gates in the way of small bills by an
other provision which makes it nee
essary as fast as the present silver
certificates of high denominations are
broken up into small bills to cancel a
similar volume of United States notes
of small denominations and replace
them with notes of denominations of
$40 and upward. Further room is
made for the circulation of small sill
yer certificates by clause which per-
mits national banks to have only one
third of their capital in denomina-
ton under $40.
"One 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 into
subsidiary silver coins up to limit of
$l0O,0OO,OOO There has for years been
a scarcity of subsidiary silver during
periods of active retail trade, but this
provision will give the treasury ample
opportunity to supply all the subsi-
diary silver that is needed. Another
provision hat the public will greatly
appreciate is the authority given to
the secretary to recon worn and un-
current subsidiary silver now in the
treasury or hereafter received.
National banks are permitted
under the law to issue circulation up
to an amount equal to their capt
tai. The total capital of all national
banks is $6l6,OO0,0OO. The total cir
culatioh outstanding is $253,OOO,0O0.
There is, therefore, possibility Of
an increase in circulation of $363,000,-
600, although the price of the new
two per cent. bonds, as already fore
Swallowed by market quotations in adj
vance of their issue promises to be
so high that the profit to the banks
in taking out circulation will not be
enough to make the increase any
thing like such possible total"
Comptroller Dawes when asked
what his course would be in connec-
ton with requests for national bank
charters under the new law said:
1.-THE question of the best methods
of preventing the abuse of the new
law. which authorizes the establish
ment of banks of $4,000 capital in
towns with not exceeding 5000 pop
ulation. has had my careful consider
alton. The law places the power of
granting national bank charters in
the hands of the comptroller and au-
| thorlzes him to refuse them II he has
reason to believe that improper use
is to be made of them.
at is essential to the welfare Of the
community that great care should be
taken in this. matter, and this Office
will endeayor in every way possible
to. prevent fraud and do its duty
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