The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-24
PLAN TO REDUCE INTEREST
PROVISION MADE FOR ISSUE OF TWO
PER CENT. GOLD BONDS.
Changes I'm National Bank Laws
Senate Declaration as to Bimetal-
Iism modified and Incorporates.
pecial to the Indianapolis Journal.

Special to the Indianapolis Journal.
WASHINGTON, Feb. pa bill which
declares gold TO be the standard OF value In
the United States, and gives comprehensive
powers to the secretary of the treasury to
maintain the standard, was agreed on to-
day by the conference committees of the
two houses of Congress. The bill has been
changed in many details from both the
Senate and House bills and is declared by
advocates Of soundmoney legislation to-
night to be great improvement on either
bill as originally passed. The declaration
for the gold standard Is now Independent
of former laws and cannot involve any
question whether gold has been the stand
ard of the past or not. The gold dollar IL
made the standard for the future, and IL is
declared that all other money OF the United
States shall be maintained at parity with
this standard. One OF the changes made
in conference is the addition OF the words
''It shall be the duty OF the secretary OF
the treasury to maintain said parity" This
provision was inserted when the Senate
refused TO adopt the language of the House
bill, directly giving discretion to the secre-
tary OF the treasury to exchange gold for
silver in order TO maintain parity. Agree
ment finally reached on the clause
giving absolute power to the secretary to
maintain parity in the terms quoted. More
than this. the secretary is authorized to
use the increase in the funds of the treas
ury resulting from the sale OF bonds for
any lawful purpose, except to cover de-
ficiencies. This language would permit the
secretary, In case the parity of silver or
paper money were threatened, to strength
ON. 10 r0l1 81
of $50 1000. 900 which is directly set aside for
the redemption of greenbacks and Sherman
treasury notes. This reserve can be used
for no other purpose than the redemption
of these two classes of legal-tender notes.
and the secretary Of the treasury is re-
quired to replenish the reserve by buying
gold and making exchanges and finally by
issuing per cent. bonds whenever the
gold fund drops below sloO.ooO.Ooo.
AN IMPORTANT PROVISION.
The provision that the proceeds of bonds
shall not be used to cover deficiencies has
been added by the conference committees
with the direct purpose OF preventing the
conditions which arose under the Cleye-
land administration and the political dis
pute which grew out OF those conditions.
The secretary Of the treasury is authorized
to purchase or redeem United States bonds
from time TO time with this money, but IA
not required to make such purchases and
redemption at once, while the money I'm
circulation is redundant and gold is going
abroad. The clause which prohibits the
use of any Of this money to cover def
ciencies will compel a complete separation
OF the ordinary expenses Of the govern
ment from the maintenance OF the redemp-
ton fund. A deficit cannot be covered by
dipping into the gold reserve nor into the
proceeds OF bonds issued to maintain the
reserve. 1t must be met by taxation or by
the issue OF short-term treasury certif-
Gates authorized by the war revenue act
and the transaction kept distinct from the
measures taken 10 strengthen the reserve
The House secures it's provision for sepa-
rate divisions Of issue and redemption In
the treasury. but in language much strong
than that OF the original House bill.
Every fund In the custody OF these dfyi-
sions is made a trust fund available only
for its specific purposes as provided by
law. The provisions for maintaining the
gold standard inviolate are thus buttressed
at every point, so they cannot well be dis
regarded by any secretary of the treasury
without rendering him liable TO impeach-
rnent for violation Of his oath to obey ana
enforce the laws.
THE REFUNDING SCHEME
The refunding project OF the Senate was
accepted by the House conferees on the as
surance of Secretary Gage and other imam.
cial experts that a per cent. bond could be
foated at par If it afforded secure invest
ment for long term of years. IL Is be-
lieved the prestige OF the United States
will be heightened abroad by floating a
per cent. bond at par that the industries
and interests OF the country would proht
enormously by the credit thus obtained.
Such an achievement viii surpass that OF
any European government Two per cent
bonds have been offered on large scale
and many OF the German imperial bonds.
the Russian bonds and even the French
and British bonds paying higher rates have
recently been quoted below par
The conference committee reluctantly acv
cepted the blmetailic clause OF the Senate