The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-27
THE CURRENCY MEASURE
REPRESENTATIVE OVERSTREETS
OPINION OF THE COMPROMISE BILL.
Thinks the Unequivocal Establish
ment of the Gold Standard VIII
Greatly Benefit Business.

NEW YORK, Feb. Pa special to the
Herald from Washington says: Represent
alive Overstreet, of Indiana, 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, with every proper safeguard. 1t
not only defines the gold standard, but it
requires the maintenance of all forms of
money at parity with that standard. and
imposes on the secretary of the treasury
the mandatory DUTY OF maintaining that
standard The absolute separation of the
trust funds to be held in the division of is
sue and redemption from the fiscal opera
tons of the government will prove great
educator in that it will demonstrate in
simple manner that a certificate is merely
the evidence of a fund which is held In
trust by the government, to be paid on de-
mand to its holder. The establishment of
ample reserve fund.- with the safeguards
which are provided to prevent the with
drawal of greenbacks and treasury notes
when once redeemed to again be presented
for the purpose of withdrawing gold thor
oughly intrenches the gold standard.
ment 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 bust
ness during the last few years and estab-
fishes uniform basis of values on which
all business can rely. Contracts and set
Elements of all kinds will be adjusted at
once to this standard and business condi-
tions will be greatly improved thereby, as
m m nj h11c
ness affairs in which time and distance are
taken into account. ~
Il believe the refunding plan contained
in the bill is sound economically and that
it will work in practice. 1t is true that the
rate of interest is lower than that at which
any other government has been able to
fund its debt, but in view OF the fact that
II is proposed at the same time that the
gold standard is being established, and at a
time when the country is prosperous. 1
think the government will have little
trouble in putting it into operation.
zine high premium on the present bonds
and the high tax on national bank circula-
ton prevent any profit on circulation at
present. Under the plan proposed banks
are permitted to substitute for their pres
ent high rate bonds a bond Of compare
lively stable value. and at the same time
they are allowed TO issue their note circu-
lation to the par value of the bonds, with a
reduction of the tax. 1t is expected that
the banks will promptly make the change.
For TINS reason it Is believed that within a
few months a very considerable proportion
of the bonds now held TO secure circulation
will be surrendered for per cent. bonds
Authority to establish banks of S25, 900
capital in small towns will no doubt result
in the establishment of many small banks,
which will also use the new per cent
bonds as the basis of their circulation. In
my judgment at least two-thirds of the
$3.50, 600 bonds subject to refunding will
be surrendered in exchange for the new 2
per cent. bonds within period which will
be surprising to the public. Such a change
will naturally result in an increased VOL
ume Of national bank circulation. This in
creased volume will, in my Judgment,
amount to 500, 600. 900 in twelve months The
rapidly increasing business of the country
will absorb this increase without difficulty.
although / believe a lower interest rate
generally will also result"