The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1900-02-27
THE FINANCIAL BILL.
Representative overstreet says 1t win
Settle Many vexed Questions
OF Dispute.

NEW YORK, Feb. pa special to
the Herald from Washington says:
Representative overstreet, Of In
diana. Who has charge of the financial
bill In the house, discussing the merits
OF the measure as agreed upon by the
conferees, said:
1T establishes the gold standard
beyond dispute. It not only defines the
gold standard but il requires the
maintenance Of all forms Of money at
a parity with that standard and inn
poses upon the secretary of the treas
ury the mandatory duty OF maintain
ing that standard.
The absolute separation OF the trust
funds to be held in the division Of is
sue and redemption from the fiscal
operations OF the government will
prove a great educator, in that it Will
demonstrate in a simple maner that
a certificate is merely the evidence of
a fund which is held in trust by the
government, to be paid on demand to
its holder.
THE establishment of an ample re-
serve fund. with the safeguards which
are provided 10 prevent the withdrawal
of greenbacks and treasury notes when
once redeemed to be again presented
for the purpose Of Withdrawing gold
thoroughly intrenches the gold stand
ard.
''In my opinion the uneQuivocal es-
tablishment of the gold standard will
be followed oy stability in all business
in which the country is interested. II
s1nac trrffh oil ha faar nd nOffhf
which confused business during the
last few years and establishes a uni
form basis OF values on which all busi-
ness can rest. Contracts and settle
ments of all kinds viii be adjusted at
once to this standard and business
conditions will be greatly improved
thereby. as stability is an essential ele-
ment in all business affairs in which
time and distance are taken into ac-
count.
Il believe the refunding plan con-
tanned in the bill is sound economically
and that it viii work in practice. 1t is
true that the rate Of interest is lower
than that at which any other govern
ment has been able to fund its debt,
but in view OF the fact that ii is pro-
posed at the same time that the gold
standard is being established and at a
time when the country is prosperous,
! thing the government viii have little
trouble in putting il into operation.
''The high premium on the present
bonds and the high tax on national
bank circulation prevent any profit on
circulation AT present. Under the plan
proposed banks are permitted 10 sub
stitute for their present high rate
bonds a bond OF comparatively stable
value, and at the time they are al
lowed TO issue their note circulation to
the par value of the bonds with a re-
duction Of the tax. 1t is expected that
the banks viii promptly make the
change.
For this reason it is believed that
within a few months a very consider
able proportion Of the bonds now held
to secure circulation viii be surrend-
cred for two per cent bonds.
Authority to establish banks of $25,-
900 capital in small towns will no doubt
result in the establishment of many
small banks which will also use the
new two per cent bonds as the basis
of their circulation.
In my judgment at least two-thirds
of the $3.50. 100000 subject to refunding
VIII be surrendered N exchange for the
new two per cent bonds within period
which viii De surprising to the public.
Such change viii naturally result in
an increased volume of national hank
circulation. This increased volume /