The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-05

OF treasury notes. and provides that
upon the cancellation OF the notes, sill
YER certificates shall be issued against
the silver dollars so coined.
The fourth section authorizes and
directs the secretary of the treasury 10
receive deposits of gold coin and 10
issue gold certificates therefor in de-
nominations of not less than $50. The
provisions Of this section are in most
respects the same as those contained
in the twelfth section of the act of
July Il, 1882.
THE purpose Of the section as a
whole is TO give certain and active
monetary use 10 the large and rapidly
increasing amount Of geld in the eoun-
try.
Denomination of Notes.
The fifth section provides that no
United States notes or treasury notes
shall hereafter be issued or 'reissued in
denominations of less than $40, and all
such notes of a smaller denomination
whenever redeemed, shall be Cancelled
and notes Of $40 or upwards substituted
therefor. II also provides that no sill
Yer certificates of a higher denOmina-
ton than $40 shall be issued.
The sixth section gives 20 the Sec
rotary of the treasury power to convert
a portion OF the national debt into
bonds bearing ? per cent interest. The
proposition contemplates a profitable
anticipation Of interest payments and
consequent reduction of the public
debt
In order to induce the holders OF
the outstanding bonds to consent to
the conversion proposed, and in COnsid-
GRAFTON Of the reduction of interest," ef-
fected thereby. the secretary Of the
treasury is authorized to pay to them
in exchange q sum not greater than
the present worth Of such bonds COM
puted to yield an income of "a per
cent per annum, and their par value.
Surplus In Treasury.
THE surplus in the treasury over and
above the amount required for an ade-
quate working balance and for the re-
serve fund created by this bin would
allow the secretary TO pay without
difficulty the SIS, coo GEO which would be
required TO effect this reduction Of in
terest.
I'm fact. under present conditions.
and with the necessity confronting rs
Of more promptly turning current re-
ceipts back into the channels Of bust
ness, the payments suggested would
congestion"
Mr.. AIdrich, in discussing the effect
Of this transaction in the national debt
said the committee was of opinion that
it would not place this portion Of the
national debt beyond the control of the
government.
We trust that our expenditures viii
soon be on peace footing, but we
must realize that we shall have large
III
which ii may not be possible to pay
from the current revenues. In cOnsid-
ering the possibilities Of the future we
cannot overlook the fact that the ma
tional debts of the world have in.
creased at an astonishing rate.
Advantage That Would Accrue.
I'VE believe it impossible to over
estimate the advantage which would
accrue to the United States from plac-
ing its national debt upon a 2 per cent
basis and keeping its obligations is
sued at this rate at par in the markets
Of the world.
zone of the principal reasons which
led the committee to recommend this
plan of conversion was that the bonds
suggested would be much more desira-
bic as a basis for national bank note
circulation than the outstanding secur-
public interest, to so modify the nation
al banking act as to give to banking
associations an opportunity to issue
currency with a reasonable profit.
If the provisions of this bin are en-
acted into law we may expect q con-
siderable increase in the national bank
note circulation in the near future, and
there is no reason, If the business Of
the country demands it. why in time
Lei
equal the capitalization Of the banks
Deposit Of Bonds.
1.-The seventh section provides that
upon the deposit Of United States
bonds by any national banking asso-
citation in the manner. provided by law,
such association shall be entitled to re-
ceive circulating notes equal to the par
value Of the bonds deposited It also
provides that any national banking as
ISOLATION now having bonds on deposit
shall be entitled to the same privilege.
THE eighth section provides that any
national banking association having on
deposit as security for its circulating
notes bonds of the United States bear
ing interest at ? per cent per annum,
shall pay tax upon such circulating
notes Of One-half OF one per cent an
nually instead Of the tax of 1 per cent
now imposed Dy law. we OeiieNe TINS
reduction in taxation is necessary to
encourage national banks to increase
their circulation and it will undOubt-
edly have the effect Of promoting the
conversion of bonds as provided for in
the sixth section"
Mr. Aldrich received the interested
attention of all the senators present,
but he was not interrupted by any one
At the close of the Spesch the senate
went into executive session, adjourn
ing at 2:30 o'clock until next Monday.
THE REPUBLICAN VIEW.