New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-13

the bill but criticised the sixth section, which pro-
vides for the funding Of the public debt On this
provision he said in part.
sariiy part Of the bill Why mix the subject Of
establishing and defining the monetary sJandaro
and strengthening the public credit WITH wnaI must
best, under the provisions Of The Dill De an eX-
hurrfuI TO the general purposes and policy OF the
measure and the public Interest," The rerunQlng
hotties nor he connected In anv wise With political
debt should be made the subject OF separate OIL
to be considered and passed when our bonds mature
and monetary conditions may be entirely different.
The bill undertakes too much; II not only DENIES
and blshes the monetary standard DuJ sets oul
a scheme 10 fund the public debt three years before
this scheme success it provides that the National
banks shall be the most important factors III l-s
In my Judgment the public debt should be funded
banks. Let the scheme OF funding stand on its own
ward when the time comes and borrow money for
funding purposes at low rate Of interest as il
being maintatned at par Without depending on Ma
tonaI banks or any outside agency and without
giving grounds for the impression that a public
debt Is 10 be encouraged and fostered in order 10
provide safe currency. Moreover, II seems 10
from the standpoint Of vision or the highest wave
ditions which surround Us in the financial and com
nerciaI world are extraordinary Present favorable
that Will bring new experiences and these will
fhan now what may be done in the matter of fund
ing the public debt when our bonds mature.
Mr. EIkins suggested that the Government might
find it difficult az some time in the future keep
the proposed 2 per cent bonds par and asked
would il not be better and in the public interest
10 make the rate Of interest higher. and offer
inducements to the National banks. II might turn
out that the inducements and advantages offered
the banks may cost the Government more than the
saving in interest that will result from funding the
debt at per cent He continued:
Il seems 10 much safer course would be TO
. he IN IA q
debt when the time comes. for instance, give him
authority to refund at rate not exceeding. say.
per cent per annuIn- We cannot hope % Go in the
matter of finances what all other nations, espe
world have failed TO do, She has never reached
standard as low as per cent. for her national
The chief argument Of the distinguished chair
rounding feature OF the bill based largely on the
superstition that National banks viii aid materially
that the provisions Of the bin allowing National
banks TO issue circulation up TO the face value OF
ton VIII be of such advantage 10 the banks that
cuIation on them The circulation OF National banks
is not so profitable, as some suppose nor Is X me
tional banks on Decembe- last was about 1920
divided profits which would be converted into cap
iJ2 # IT W OF Pei g 90 R fG ne aoun o N
tionaI bank notes in circulation secured by bonds
Reducing the tax on circulation to Il per cent and
permitting the issue Of bank notes up 10 the face
inducement TO National banks largely TO Increase
oir0IY 1a-fD 2 a
outstanding bank with 10000 circulation would
get 5000 income from its bonds From this amount
ton s125: total, s625, leaving annual profit OF
$3.50 In case the bonds should decline per cent,
5[inaI % bon5s 70 secure circuiation This might
happen al time when the banks could not raise
money In case Of prOtracted war our bonds
ba55pen at time when National banks could not
deposit more bonds secure note circulation. This
could be made TO meet such emergencies. Then.
again securing by legislation low "a OF interest
NAV not in the end The best thing for the
use OF money can BE bought cheaply, il may have
afraid very low rate or interest would tend 10
reduce wages
After referring 10 what he called the unjust
prejudice against National banks Senator Elkins
closed by saying:
Under present conditions. and even the more
favorable promised in the bin before the Sen
ate note circulation Of National banks may dts
appear. partly because II IS mol pTonIaole now 70
the banks and may not be under the provisions OF
this pill. and partly because OF me PrejJlolce ana
people TO National banks issuing currency bur
that there win be no need OF bank note circulation
in case the Increase OF certificates against gold de-
DOsfts in the Treasury should continue. To nv
mind gold certificates and silver certificates under
proper hnits tons are the money 81 me future and
6oernnent the sole power OF Issuing money; there
5ucements 70 National banks 10 take Der cent
bonds 70 fund the public debt before our bonds
putting out bond that cannot be redeemed under
II the law is not already clear. make II clear tina,
anv person in the United States, n our posses
Bullion can deposit the same in the Treasury Of tbe
United States and get certificate redeemable 30
money throughout the world
PoPULIsT FINANCIAL SCHEME
Mr. Butler then began a speech on his substi-
sute for tia SenAts bill entitled IAN ar, a.