The Van Buren press., 1900-03-17
which permits national banks to have
only onc-third of their capital in de-
nomination under ter dollars.
Increase OF Subsidiary Silver.

Increase OF Subsidiary Silver.
One clause of the bill which the pub
lie will greatly appreciate is the righ.
that il gives to the secretary to coin
any of the 1890 bullion into subsidiary
silver coins under limit of S100,000,-
900. There has for years been search
ty of subsidiary silver during periods
of active retail trade but this proyi-
sion will give the treasury ample OPP
portunity to supply all the subsidiary
silver that is needed.
May RECON- Worn silver Coins.
Another provision that the public
will greatly appreciate is the authority
given to the secretary to recon worn
and uncurrent subsidiary silver now in
the treasury or hereafter received.
The bill makes a continuing appro-
priation for paying the difference be-
tween the face value of such coin and
the amount the same will produce in
| the new coin.
To Refund nt Two Per Cent.
A distinct feature of the bill is in
reference to refunding the three per
cent. Spanish war loan, the two pei
cent. bonds maturing in 1907 and the
| five per cent. bonds maturing in 1904,
a total of $s39,0O0,00O, into new two
per cent bonds. These new two per
cent. bonds will not be offered for
sale, but will only be issued in eX-
change for an equal amount, face
value, of old bonds. The holders Of old
bonds will receive premium in cash
to compensate them in a measure for
| the sacrifice of interest which they
make. The cash premium will be COM
puted on basis of the present worth
of the old bonds at 2H per cent, and
will be on April /, the date that the
new two per cent, bonds will bear,
| S105.6S5l ior the threes, Sili.6765 for
the fours, and $1l0.075l for each 500
of the fves. This exchange will save
the government, after deducting the
premium paid, nearly $23,O00,OOO, if all
the holders of the old bonds exchange
them for the new ones.
National banks that take out cir
culation based on the new bonds are
to be taxed only one-half of one per
cent on the average amount of cir
culation outstanding, while those who
have circulation based on a deposit Of
old bonds will be taxed, as at present,
one per cent,
To Increase Circulation.
There are some other changes in the
national banking act, The law permits
national banks with S25,O 900 capital TO
be organized in places of 5000 inhab-
itants or less, whereas, heretofore the
minimum capital has been $4,000. IL
also permits banks to issue circulation
on all classes of bonds deposited up to
the par value of the bonds, instead OF
90 per cent. of their face, as hereto
fore. This ought to make an immedi-
ate increase in the national bank cir
cuation of something like $2i000,00
as the amount of bonds now deposited
TO secure circulation Is about S2i2, ,0O0,-
coo, II the price of the new twos Is
not forced sc high in the market that
there is no profit left TO national
banks in taking out circulation, we
may also look for material increase
in national bank circulation based on
additional deposits of bonds.
Price May Modify Circulation.
National banks are permitted under
the law to issue circulation up to an
amount equal TO their capital. The
total capital Of all national banks is
S6lG,OOO,0O0. The total circulation out
standing is $253OO0O00. There Is,
therefore, Il possibility of an increase
in circulation of $3630OO,O0O, although
the price of the new two per cent.
bonds ms already forcshadowcd by
market quotations in advance of their
issue, promises TO be SO high that the
profit TO the banks in taking out cir
culotion will not be enough TO make
the increase anything like such a pos
sible tctal,