The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-03-05
NEW CURRENCY LAW.
Secretary Gage Plans to Put It's Pro-
visions Into Effect at Once.

New York, March 5.-A special to the
Herald from Washington, D. c., says:
Plans for complying promptly with
the new currency law are being con-
sidered in the treasury department and
1t will be put into operation at the ear
lest possible moment after it's passage.
Secretary Gage will have new form of
the daily treasury statement prepared,
which will separte the funds set aside
for the redemption of gold and silver
certificates and legal tender notes from
the funds used in the ordinary fiscal
operations.
The most important work to be done
is to prepare the new bonds under the
refunding plan.
The new two per cent bonds will be
issued to holders of the old bonds to the
face value of the old bonds, but certain
premiums will be paid by the treasury
in cash. These premiums will be such
that the bonds would pay two and a
quarter per cent. interest until matur-
ity, with allowance for the sinking
fund. The effect of the premiums will
be that a man holding a bond for 81, 900
will receive q new bond at two per
cent for 81 900, will receive q check
from the treasury for the premium,
amounting in the case of the furs and
fives to something like 500, and will
thereafter receive interest at the rate
of two per cent.
None of the new two per cent bonds
will be offered for sale by the govern
ment. This probably accounts for the
reported premium of five or six per
cent. upon new bonds when issued.
If the government We're taking up a
loan which had matured some of the
new bonds might be offered upon the
market and the money received fof
them used in paying old bonds whose
the present case, however the only OPP
ton of teh holder of the old bonds is
to accept the new ones or retain the
old ones.
Tt is proposed to issue bonds of de-
nominations as high as $4,000 to meet
the needs of the banks. but they will
also be issued as low as $50.
An apprehension seems to have
gained ground that the pending bill calls
in large silver certificates. This is not
the case. The treasury will not make
any call for large silver certificates,
but when they are received in the ordi-
nary course of business and for redemp-
ton only certificates of $40 and under
will be issued in their place. This will
tend to put all the silver certificates
into small notes, and there will be a ten
dcncy to cancel small legal tender notes
and substitute large ones.
The high price of the bonds capable
of being refunded and the recent in
crease of bank note circulation indi-
Gates that general preparations are be-
ing made by the banks to exchange the
old bonds for the new. It is expected
that a rush of applications will come
to the treasury when the law is ap-
proved The issue of the bonds and the
payment Of premiums which Senator Al
| drich estimated at $685. 600, 900 and would
| put this much money in circulation, so
/ far as it is not already in public use
| through government deposits in the
| banks. It is not generally expected,
| however that all the bonds will be re-
| funded at the present time
The treasury balance will drop, ac-
cording to the present form of state
ment, to about 1925, 100000, and the set
! ting aside of the new gold reserve of
| $3.50. 900 viii leave the fiscal balance,
according to the new form of state
ment, at about sos, 600, 000-a much more
manageable fund than the surplus OF
the last few months. which has threat
ened the supply of the money market
and required constant special meas
ures by Secretary Gage to prevent I'M
| due contraction