The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1900-03-08
Plans For Complying With 1t
Being Considered by the
Treasury Department.
IT WILL SOON GO INTO OPERATION.
Most Important Work is the PreFara-
ton Of the New Bonds Unde.
the Refunding Plan.
New Bonds VIII Re Issued to the
Holders of the old Bonds
To Their Face
NnIuc.


Washington, March G.-Plans for
complying promptly with the new
currency law are being considered in
the Treasury Department, and it viii
DC put into operation at the earliest
possible moment after its passage.
Secretary Gage will have a new form
Of the daily treasury statement pre-
pared, which viii separate the funds
set aside for the redemption of gold
and silver certificates and legal ten
der notes from the funds used in the
ordinary fiscal operations.
The most important work 10 be
done is 10 prepare The new bonds un-
der the rcfunding plan.
The new per cent. bonds VIII bc
issued to holders Of the Old bonds 10
the face value Of the old bonds. but
certain premiums Will he paid by the
Treasury in cash. These premiums
will be surh thar thr bonds would pay
two and quarter per cent. interest
until maturity With allowance for thc
sinking fund.- The effect Of the rrr-
miums paid viii bc that q man ho'I-
ing bond for $1,000 will receive Il
new bond at . per cent. for $1,000.
will receive "a check from the treasury
for the premium. amounting i'm the
case of the four's and fyc's TO some
thing like 500. and Will thereafter
receive interest at the rate Of per
cent.
None Of The new per cent. bonds
will be offered for sale by the gov
crnmcnt. This probably accounts for
the reported premium of five or six
per cent. upon new bonds when is
sued. If the government were taking
mp loan which had matured some
of the new bonds might be offered
upon the market and the money re-
cciycd for them used in paying old
bonds whose holders desired their re-
dcmpton. In the present case. how
ever, the only option of the holder Of
the old bonds is to accept the new
ones or retain the old ones.
1T is proposed TO issue bonds Of
denominations 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 GER
.iiicateS, but when they are received .
n the ordinary course Of business and I
Tor redemption oniy certificates Of SO
and under viii be issued in their .
place. This Will tend to put all the +
silver certificates into small notes, and .
here will be Il tendency to cancel
small legal tender notes and substi-
ute large ones.
The high price oi the bonds capable
If being funded and the recent in
'rcase Of bank note circulation indi-
ate that genera. preparations are be-
ng made by the banks to exchange
he old bonds for the new. 1t is cX-
,ected that a rush Of applications viii
ONE to the treasury when the law is
pprOrcd. The issue of the bonds and
he payment Of premiums which Sen
tor Aldrich estimated at SSS,OO0,OO0,
nd would put this much money
II circulation so far as it is not al
eady in public use through the de-
osits in the banks. Ii is not general
V expected, however, that all the
onds Will be refunded at the present
ime.
The treasury balance will drop, ac-
ording 10 the present form of state
lent. to about S255,0OO,0OO, and the
citing aside of the new gold reserve
f $l50,00O 600 will leave the fiscal bal
nee, according to the new form Of
tatement. at about $10j.000, ,000-a
luch more manageable fund than the
lrplus of the last few months, which
as threatened the supply of the
loney market and required constant
occial measures by Secretary Gage to
rcvent undue contraction.