The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-01-05
B[VER|DGES VIEWS
ON PHILIPPINES.
and consequent reduction Of the

payments. and consequent reduction OF the
public debt.
'Tn order to induce the holders Of the
outstanding bonds to consent to the con-
version proposed, and in consideration OF
the reduction Of interest effected thereby.
the secretary of the treasury Is authorized
to pay to them in exchange sum not
greater than the present worth OF such
bonds computed to yield an income OF "a
per cent. per annum and their par value.
1.-THE surplus In the treasury over and
above the amount required for an adequate
working balance and for the reserved fund
created by this BILL would allow the sec
rotary to pay without difficulty the Sss,-
100000 which would be required to effect
this reduction of interest.
"In fact, under present conditions and
with the necessity confronting us of more
promptly turning current receipts back into
the channels Of business, the payments
from dangerous congestion"
Mr.. Aldrich. in discussing the effect Of
this transaction in the national debt, said
the committee was Of the opinion that It
would not place this portion Of the ma
tional debt beyond the control Of the gov
eminent.
1--WE trust that our expenditures will
soon be on a peace footing but we must
realize that we shall have. large disburse-
ments for some time to come, which 1t
may not be possible to pay from the cur
rent revenues. In considering the posi-
bilities OF the future we cannot overlook
the fact that the national debts Of the
world have increased at an astonishing
rate.
eve believe It impossible to overesti-
mate the advantage which would accrue
to the United States from placing its ma
tional debt upon a per cent. basis ana
keeping its obligations issued at this rate
at par in the markets of the world
"One of the principal reasons which led
the committee to recommend this plan of
conversion was that the bonds suggested
would be much more desirable as a basis
for national bank note circulation than the
outstanding securities.
at is the duty of congress, in the pub
lie interest, to SO modify the national bank
ing act as to give to banking associations
an opportunity to issue currency with a
reasonable profit. If the provisions of this
bill are enacted into law we may expect
considerable increase in the national benk
note circulation In the near future end
there is no reason. II the business Of the
country demands 1t why, in time, the out
standing circulation should not equal the
capitalization of the banks.
1.-THE seventh section provides that upon
the deposit of United States bonds by any
national banking association in the man.
ner provided by law such association shall
be entitled to receive circulating notes equal
to the par value Of the bonds deposited. 1t
also provides that any national banking as
ISOLATION now having bonds on deposit shall
be entitled to the same privilege.
1.-THE eighth section provides that any a
tional banking association having on de-
post as security for its circulating notes.
bonds Of the, United States bearing snter-
est at per cent. per annun1. shall pay a
tax upon such circulating notes Of half of
per cent annually instead of the tax OF
per cent. now imposed by law. We be-
lieve this reduction in taxation is neces-
sary to encourage national banks to in
crease their circulation and it will un-
doubtedly have the effect Of promoting the
conversion of bonds provided for in the
sixth section"
Mr.. Aldrich received the interested atten-
ton OF all the senators present, but he was
not interrupted by any one.
At the close of the speech the senate
went into executive session. adjourning at
2:30 until next Monday. .ei-.-. :. 4. ~.