The times. [volume] (Richmond, Va.) 1890-1903, 1900-02-20
CURRENT TOPICS.
money

CURRENT TOPICS.
The Chicago Times-Herald gives an cN-
ce.lcnt summary of the points of differ
ence between the House and Senate
finance bills which are now before the
committee of conference, Our readers
know that both bills declare for the gold
standard: both provide mat national
banks may Issue circulating notes to the
full face value of the bond deposited
with the United States Treasury TO
guarantee circulation. But there IS a
difference with regard TO the inducements
of bank circulation which the Times
Herald thus points out:
The House bill removes the per cent.
tax from bank notes entirely and places
a tax Of one-fifth Of / per cent. year
u,.on the capital, surplus, and undivided
profits of the banks In addition to the
present tax. The idea is that under this
pressure the banks will be inclined to
put cut untaxed notes.
The Senate bill tries 10 get al the same
object by anoher method. In the first
place it provides for the refunding of
per cent. per cent. and ) per cent. coin
bonds al the option Of the holders and the
substitution of . per cent. gold bonds for
them. Then, in case banks deposit these
gold bo!ds as a basis for a note cireua-
ton their notes Will be taxed only one
half OF ! per cent. instead Of ! per cent.
per annum. But the bill limits the issue
Of the notes to denominations of so ana
upward, which would, OF course, limit the
circulation and SO defeat III part the "5-
ject which is sought TO be. secured.
Other points of difference are then
I.cted as follows:
The House bill has no refunding
scheme but it goes further than the SEN
ate bill in fortlfying the gold standard,
since if declares that all lntercSt-belr-
ing obligations of the government now
existing or hereafter to be entered into,
as we'll as the treasury notes ana the
grecnbacks, must be paid in gold. At the
same time, however, it Droclaims the
legal-tender quality of the silver dollar,
OF the subsidiary coin, and OF the paper
currency Of the country, and the CON
tinuance of existing laws making ma
tional-bank notes receivable and payable
por certain public debts and dues and
obligations between national banks.
.sThough both bills declare for the
maintenance of the parit::, the Senate
bill does not propose method III eN-
press terms, while the House bill does
The latter says that TO this end the
Secretary of the Treasury may. at his
discretion exchange gold coin for any
other money issued or coined by the
United states This brings US to the
question of the reserve and It's protec-
ton.
I. .1.,.. s,,,t s...-
serve fund of $780, 000,0GO for the redemp-
ton of Treasury notes and greenbacks
It is to be maintained. first, by cXchanS-
ing the notes redeemed tor any gold coin
in the general fund of the Treasury;
second, by accepting deposits OF goio
coin at the Treasury or al any sud
treasury in exchange for United States
notes SO redeemed; third, by procuring
gold coin by the use Of said notes, III
;.e cordance with the provisions of section
370a of the Revised Statutes of the United
States (This section. authorizes the pur-
chase OF coin with bonds and notcs)
IF these means fail, then it shall be
the duty Of the Secretary of the 1rea-
surv TO protect the reserve by the issue
Of per cent bonds.
THE House bill authorizes the issue
of bonds in the last resort at the dlScrc-
ticn of the Secretary and its other pro-
visions are different. 1t creates diVis-
ion OF issue and redemption III the 1resl-
sury Department, TO whose credit VIII De
transferred gold coin and bullion ned
against outstanding gold certilcalesa
United states notes held against out
standing currency certificates, silver dol
lars held against outstanding silver Ger
titfcates silver dollars and bullion hcld
against Treasury notes, and gold com
and bullion TO constitute Il reserve fund
equal to % per cent. Of the United States
notes and Treasury notes. An exchange
Of funds is also permitted and transfer
to the division of any money III the
Treasury not otherwise appropriated.
Redeemed and exchanged notes may NOT
be paid out except for IN equivalent
amount of the coin in which they were
redeemed.
Both bills allow the coinage OF silver
bullion bought under the sherman law
on condition that an equivalent amount
Of Treasury notes are cancelled, but the
Senate bill calls for the issue Of these
notes and grcenbacks in denominations
of SO and upward. while the House bill
provides for their issue IN smaller De
nominations.
Finally, the House bill sanctions the
incorDoration OF national banks with 4
caDital of S25GlD. and an amendment 10
the Senate bill does the same. y second
Senate amendment Is the sop to the hi
metaIlists in the way of an assurance
that the government vii! not stand in
the way of international bimetalllsm
=----------==