Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-03-17
THE COUNTRY'S new FINANCIAL BILL.
Mr. 0verstree Explains That il Makes il Impossible to Have
International Bmetallism at the Rate Of 10 TO l.
Secretary Gage Explains.

si00.0coo0o There has for years been
q scarcity OF subsidiary silver during
periods Of active retail trade. but this
provision Will give the treasury ample
opportunity TO supply all the subsidi-
| provision that the public will greatly
| appreciate Is the authority given TO
the secretary 10 recon worn and I'M
current subsidiary silver now in the
treasury or hereafter received The
bin makes continuing appropriation
for paying the difference between the
lace yalpe Of such coin and the amount
the same Will produce in the new coin.
THE REFUNDING FEATURE.
"A distinct feature OF the bill ls in
reference to refunding the per cent
Spanish war loan, the per cent bonds
maturing In 1907 and the 5 per cent
bonds maturing in 1904, a total Of $780,
10000. into new 2 per cent bonds. These
new per cent h1n'e 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 10 compensate them
In 4 measure for sacrifice Of interest
which they make The cash premium
VIII be computed Oh basis Of the pres
ent worth OF the old bonds az pa per
cent, and will be on April l. the date
that The new per cent bonds viii bear
slO5.es5l for the ss, Slil676j for the Is
and SllO0lbl for each 500 u the S.
This exchange will save the govern
ment, after deducting the premium
paid, nearly s2S 000. 900, II all the holders
Of the old bonds exchange them for
the new ones.
National banks that take out cir
culatlon based on the new bonds are to
be taxed only one-half Of ner cent on
the average amount Of circulation out
standing, while those who have cir
culation based on a deposit Of old bonds
viii be taxed, as az present, per cent.
CHANGE IN BANKING ACT.
There are some other changes IN the
national banking act. The law per-
miis national banks with S25.yuV capital
to be organized In places Of 5000 in
habitants or less, whereas heretofore
the minimum capital has been $50 900,
ut also permits banks TO issue cir
culation on all classes Of bonds de-
posted up TO the par value Of the
bonds. instead Of 80 Der cent OF their
face, as heretofore. This ought TO make
an immediate increase In national bank
circulation Of something like S2i 600 900.
as the amount OF bonds now deposited
10 secure calculation Is about s2i2 ,000,-
600. II the price Of the new IS Is not
forced so 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 de-
pOsits Of bonds.
National banks are permitted under
the law to issue circulation up to an
amount equal to their capital The 20.
tai capital OF all national banks Is $685.
100000. The total circulation outstand-
ing Is 1858 900 ecu. There Is. therefore.
possibility of an increase in clrcula-
ton OF 1886. GOA. 600. although the price
of the new per cent bonds. as already
foreshadowed by market quotations in
advance OF their Issue, promises 70 be
so high that the profit TO the banks IN
taking out circulation will not be
enough 10 make the Increase anything
like such a possible total"