The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-14
PROVISIONS OF
THE FINANCE BILL
As Seen Through Secretary
Cages SpectacIeS,
ENDLESS CHAIN BROKEN
The Secretary of the Treasury Clothed Wi
New Authority.
LARGER ISSUE OF SILVER PROVIDED FOR
The Ultimote Retirement of the TreasuryNo otes
Issued Under the Sherman Act. The
Authority Given the Secretary to
Coin Silver Bullion.
ENDLESS CHAIN BROKEN
The Secretary of the Treasury Clothed Wi
New Authority.
LARGER ISSUE OF SILVER PROVIDED FOR
(By The Associated press.)

(By The Associated Press)
Washington. March 13.-Secretary Gage
today made the following statement in
explanation of the provisions of the FL
nancial Bill which passed the House To-
day:
1T re-affrms that the unit of value
is the dollar consisting of % and $40
grains Of gold $40 fine, but from that
point it goes on to make it the duty of the
Secretary Of the Treasury to maintain all
forms of money issued or coined at
parity with this standard. 1t puts into
the hands of the Secretary ample power
10 do that. For that purpose the bill pro-
vides in the Treasury bureaus of issue
and redemption. and transfers from the
general fund of the Treasury's cash $3.50
eco 000 in gold coin and bullion to the
redemption fund, that gold to be used
for the redemption Of United States notes
md Treasury notes. That fund is hence
forth absolutely cut ont of and separated
from the cash balance in the Treasury
and the available cash balance will here
after show a reduction of $3.50, 900 600
from the figures that have heretofore pre-
vailed. This $3.50, ,0O00 coo redemption fund
the redemption Of United States notes
and Treasury notes and those notes so
redeemed may be exchanged for gold in
the general fund or with the public, SO
that the reserve fund is kept full with
~sla 10 the St50 600 600 limit
THE Secretary is given further power.
If redemptions reduce the gold in the re-
serve fund below 500, 900 900 and he is
unable to build it up to the $3.50 900, 900
mark by exchange for gold in the gen
eraI fund or otherwise, he is given power
to sell bonds. and it is made his duty
to replenish the gold to the $50 900 900
mark by such means.
THE endless chain is broken by
provision which prohibits the use of notes
so redeemed TO meet deficiencies in the
current revenues. The act provides for
the ultimate retirement of all he Treas
ury notes issued in payment for silver
bullion under the Sherman act. AS fast
as that bullion is coined into silver dol
lars Treasury notes are to be retired, and
replaced with an equal amount of silver
certificates.
The measure authorizes the issue of
gold certificates in exchange for deposits
of gold coin. the same as at present, but
long as the gold in the redemption fund is
below 800, 100000 and gives to the Secre
tary the option to suspend the issue of
such certificates whenever the silver GER
, tiicates and United States notes in the
general fund of the Treasury exceed $50-
600 coo.
The bill provides for a larger issue
of silver certificates, by declaring that
hereafter silver certificates shall be is
sued only in denominations of ten dollars
and under except as to ten per cent of
the total volume. Room is made for
this larger use of silver certificates in
the way of small bills. Furthermore
national banks are allowed only one-third
Of their capital in denomination under ten
dollars
"One clause of the bill which the public
will greatly appreciate is the right that it
gives to the Secretary TO coin any of the
1890 bullion into subsidiary silver coins
up 10 limit of 100000, 900. There has
for years been a scarcity Of subsidiary
silver during periods of active retail
trade, but this provision will give the
Treasurer ample opportunity to supply all
the subsidiary silver that is needed.
"A distinct feature is in reference to
loan, the two per cent bonds maturing
in 1907, and the five per cent bonds ma.
turing in 1904, total Of $S39 000, 900 into
new two per cent bonds. These new two
per cent bonds will not be offered for
sale, but will only be issued in exchange
for equal amount, face value of the
old bonds. The holders of old bonds will
receive a premium in cash to compensate
them in measure for the sacrifice of in
terest which they make. The cash pre-
MUM will be computed on basis of the
present worth of the old bonds at "a per
cent and will be on April 1st, the date
that the new two per cent bonds will bear
| $105 6S51 for the threes, $l11 .6765 for the
fcurs and $110.075l for eachN 800 of the
| fves This exchange will save the gov
ernment, after deducting the premium:
paid, nearly $4,000, coo, if all the holders
OF the old bonds exchange them for the
new ones National banks that take out
| circulation based on the new bonds are
to be taxed only half of one per cent
of the average amount OF circulation out
standing, while those who have circula-
| ticn based on Il deposit of old bonds wiz
be taxed, as at present one per cent.
Where heretofore the minimum capitai
was $50 coo national banks with $4,000
capital may now organize in places of g.,
| 600 inhabitants or less. 1t also permits
banks to issue circulation on all classes
OF bonds deposited up to the par value
of the bonds, instead Of ninety per cent
of their face, as heretofore. This ought