The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-09
President VIII sign IL without Delay.
and Gold viii Then he the Receg-
mixed Standard of Our Money.
PREPARATIONS BY MR.. GAGE
TREASURY WILL s0ON BE READY To
ISSUE TWO PER CENT. BONDS.
National Banks Expected To Add Over
One Hundred Millions to the Circu-
Inting Medium by Issue of Nodes.
peclal to the 1naIanapoli. Journal.

GpcNtdi 70 ne 4uOt0hdlOl- SOdAna4-
WASHINGTON, March Sat the re-
quest of Representative Overstreet the
House to-day decided to take a vote next
Tuesday afternoon at 4:30 o'clock on the
conference committees financial bin and
in less than sixty minutes thereafter the
measure will have passed that branch OF
Congress and be ready for the Presidents
| signature which will formally complete
the recognition of gold as the standard
money of the country. Immediately there
after the Treasury Department will begin
the conversion of about ss50.O0O.ooo OF our
funded debt into thirty-year 2 per cent.
bonds and the banks will set to work ex-
panding their circulation. This process
will take from four TO six months. and
when it is over. the volume of national
bank note currency will be anywhere from
500. O00. 900 to $50, 0O0. 900 larger than IL is at
the present moment by an injection OF the
best money in the world into the circula-
ton, which may be depended on 20 enor-
mously stimulate business. within safe and
healthy bounds.
In this connection the following state
ment, dictated by a high treasury official
who does not care to appear in print at
this juncSure, but is willing to give the
| public the benefit Of the inside view, will
be read with interest He said: 1T is OF
course difficult TO estimate exactly the
amount of increase in bank note circulation
| which will be due TO the new financial bill
when enacted into law. 1t is safe to as
sumo, of course. that the banks now having
circulation TO 80 per cent. OF the par OF
the bonds deposited TO secure the same
will Immediately take out circulation 10
the par of the bonds. which will give an
increase OF about s24. 10000 Since the law
| provides in its refunding features that the
secretary of the treasury is TO pay in
| cash the premium on such Of the bonds as
| are exchanged for the new 2 per cent
lsbonds, it is probable that he will utilize
to some extent the cash balance of the
government now on deposit in the United
States repositories. which amounts TO
about sl11, 0O0.Oo0 to secure which govern
ment bonds are deposited. Naturally such
reduction as the secretary Of the treasury
may make in the amount OF the public de-
posits in national banks secured by bonds
will be represented by an increase in the
issue of national bank notes, since the
bonds will be released and can be used by
| the banks to take out circulation. The
amount of the increase which can be ex-
pected from this source depends somewhat
on the amount which the secretary of the
treasury may see mt to withdraw for the
m of the premium. 1t may be that
some of the bonds deposited by the
national banks as security for public de-
posits may have been borrowed for that
purpose, but it is reasonably safe 10 as
sumo that in time the bulk of the bonds
- -, t,-L. 50 D.nr nu-
eminent deposits will eventually be used as
security for circulating notes. resulting
in an increase in the currency Of from
$50, &c., 900 to 800. O0.O 600. In addition the
Dec. 2 statement of the banks showed
holdings of government bonds not securing
deposits of SIS. 0O. 600. on a portion of which
circulation may be taken out. Some cir
culation may be taken out upon bends pur-
chased in the open market, but the
amount which will be obtainable In this
connection it is difficult to But IL
is the opinion of those who have investi-
gated the subject that a fair estimate of
the total increase In bank-note circulation
as a result of the new legislation will be
not in excess of l50.ooo.oco.
The proposition to amend the pending
1 Hdy-I dQUCSlOlt litdts ny Az
of certain articles Of the Suez convention
which guaranteed the Egyptian govern
ment the right to take any measures
deemed necessary in case OF war. TO de-
fend Egyptian rights. has not been sub
mitted by any responsible person 10 the
Judgment OF the administration officials.
Moreover. 1T is said by those competent
to express the opinion that IL IL were
submitted IL would be disapproyed. The
particular articles were omitted from the
Hay-Pauncefote treaty. not by accident
not by an error or a blunder, but by de-
sign, according TO the statement OF au-
thorized persons. The reason for the omis-
sion was clear In their minds. According
TO a high official, the conditions under
which England dealt with Egypt were ex-
actly the reverse OF the present conditions
II was the secret purpose OF England 10
confer on Egypt at that time a nominaliy
independent government, put one ~hich
would soon become Englands creature, a
power in respect TO the protection OF her.
self along the line OF the canal In the
event of war. which would revert 10 Eng
land, the ultimate owner or the canal ana
suzerain of Egypt. In other words. as an
administrator official put IL, 10 parallel
that condition Of affairs would be 10 sup
pose the United States now 70 make a
treaty with Nicaragua and Costa Rica
relative TO a canal. sustaining a clause
granting those nations power TO take such
measures as they deem necessary In time
i Oh war, lmply lu6s VI tOuArCs III iAthN "
close the canal against a foe. Such a
clause might be polite and statesmanlike.
IL is said, In the event that the United
States government cherished a purpose
10 some time in the near future annex
Nicaragua and Costa Rica: otherwise the
coded authority might work disastrously
against US In answer TO a suggestion that
the proposed amendment was to apply, not
TO Costa Rica and Nicaragua. but only TO
the United States AMI Great Britain, the
official already quoted declared that even
IL England should assent 10 such an
amendment. and there was little doubt on
that point II the United States really de-
sired Il. the adoption Of the amendment
would certainly defeat the purposes OF the
treaty. for he did not believe that a single
continental power would adhere 20 the
treaty I'm the amended shape.
The Senate committee on foreign rcia-
tions will meet tomorrow TO consider the
treaty. The subcommittee consisting cf
Senators Davis. Lodge and Morgan vii
report 10 the full committee. This report Is
favorable 10 the treaty with an amend
merit providing that the United States shall,
have the right 10 defend the canal In time
OF war. The provisions 20 prevent fortlhca-
tions stin remain. The amendment Is con-
s!6ered sufficient 10 allow the United States
10 shut up the canal In time OF war and re-
fuse to allow vessels at war with United
States TO pass through the canal.
Several conferences were held with TIE
President to-day on the pending recipr0c-
ity treaty with France with the result.
IL is thought. that the French government