The evening times., 1900-01-04

adequacy and use Of the gold reserve. we
ere bound 10 enquire into the ability of tie
Treasury TO maintain an equality Of value
between the silver dollar and silver GER
tifcate and the gold dollar without pro-
vision for direct eXchangeability. Our own
experience and that of other countries, no.
tably France and Germany, clearly prove
that ii is possible to keep in circulation at
a parity of value with gold large but
limited amount Of legal-tcnder silver OF
notes based upon such silver without any
provision for compulsory redemption IN
gold.
BY the provisions of the pending sub
stitutS all outstanding notes and certih-
Gates OF a less denomination than $40 are
TO be Withdrawn from circulation and sill
yer certificates issued in their place. Inc
amount OF paper currency of denominations
OF ST. s. and s. in circulation on the SVJn
o. November 1899. was S3Sl.S4O. lSS- ii
will be seen that these denominations prac-
tically absorb the entire amount OF out
standing silver certificates and VIII give
10 silver notes a secure place IN our cur
rcncy system.
"The committee do not suggest any
changes in the status OF the silver dollar
or the silver certificate. We do not pro-
pose to take away from silver any OF the
monetary privileges or prerogatives which
1t now enjoys.
THE third section makes it the duty Of
the Secretary OF the Treasury. as fast as
standard silver dollars are coined, as re-
puired by law, from the bullion purchased
under the act of July Ia, 1890, to retire and
cancel an equal amount of Treasury notes.
and provides that upon the cancellation OF
the notes silver certificates shall be issued
against the silver dollars so coined.
Authority 10 Issue Certificates.
''The fourth section authorizes and di-
rects the Secretary of the Treasury TO re-
ceive deposits Of gold coin and to issue
gold certificates therefor in denominations
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 u, 1882. The differences
are as follows:
''First. The section suggested makes
more specific pledge thar the coin deposit
ed shall be held for the payment of such
certificates on demand. IL also provides
that Il shall be used for no other purpose.
Second. II provides more clearly that
the suspension of the authority to issue
certificates shall only continue during the
time that the gold reserve remains below
500 Gee eco.
OF certificates outstanding az any time one
fourth at least shall be of denominations
of $50 or less
Fourth. The Secretary of the Treasury
is authorized ia his discretion to ISSUE gold
certificates in denominations of SO 900,
payable to order. These certificates are
intended TO take the place of currency GER
tlfcstes nov issued in accordance with the
terms Of section 51s2 of the Revised Stat
ion - to he lad
The Secretary OF the Treasury called the
attention OF the committee to the fact that
the currency against which currency certi-
fiCates are issues Is held at the various
subtreasUries at considerable risk 20 the
Government. The issuance OF these certi-
ficajes was authorized principally for the
convenience OF banks and these institu-
Ji0ns would he equally well served by the
issue Of gold certificates a. suggested
The fifth section provides that no
United States notes or Treasury notes shall
hereafter be issued or reiSsuea in denOmi-
nations OF less than SO. aud all such notes
of a smaller denomination. whenever re-
deemed. shall be Cancelled and notes OF
$40 or upward substituted therefor. n also
provides hat no silver certificates Of a
higher denomination than $40 shall be is
sued
MISUNDERSTANDING Bonds.
Itrti II ftlittt't-tHbn WIN lhe ldSI f1Is
of the seventh section. The effect OF the
legislation suggested would be to with
draw from circulation all outstanding notes
and all certificates (eXcept silver Of de-
nomina tiOns less than sic and TO issue in
their place silver certificates. I have al
ready stated in my explanation OF the
provisions OF the second section the rea-
sens v h;ch led tie committee 10 suggest
this course.
The sixth section Of the substitute
gives 10 the Secretary OF the Treasury au-
thority to convert portion OF the national
debt into bonds bearing , per cent interest. .
The proposition coutempistcs a profitable
anticipation OF interest payments and con-
sequent reduction OF the public debt The
transaction may be considered first as q 4
mathematical question of profits, and sec 4
ond as question Of policy affecting the I
public credit.
The proposition recommended by The .
committee is to authorize the Secretary OF .
the Treasury to convert the Der cent !
bonds due in 1904. the per cent bonds due
IN 1907, and the per cent bonds due in /
1908, amounting in the aggregate 70 SS49,- 4
3S2. .520, into . per cent bonds. PAYABLE at !
the pleasure OF the United States after
thirty years. On these three classes of /
bonds there is at present an annual in
terest charge OF S32 800. .532. .60''