The Forrest City times., 1900-03-16
FORREST CITY, ARK. FRIDAY AFTERNOON MARCH 16 19oo

S'ei eertincates, by declaring that hereafter silver certificates shall be is- sued only in denominations of ten dol i"rs ana under, except as to ten per cent. of the total volume. Room is made for this larger use of silver cer- tincates in the way of small bills bv another provision which makes it nee essary, as fast as the present silver certificates of high denominations are broken up into small bills to cancel similar volume of United States notes of small denominations and re- | place them with notes of denomino- tons of ten dollars and upward. Fur ther room is made for the circulation or small silver certificates by clause which permits national banks to have only one-thlrd of their capital in de- nomination under ten dollars.
 Increase of Subsidiary Silver.
 One clause of the bill which the pub- lie will greatly appreciate is the rich. that II gives to the secretary to coin any of the 1890 bullion into subsidiary silver coins under a limit of SlOO. .OOO. . 900. There has for years been a scarci- ty of subsidiary silver during periods of active retail trade, but this proyi- sion will give the treasury ample op- portunity to supply all the subsidiary silver that is needed.
 May RecOin Worn silver Coins. Another provision that the public will greatly appreciate is the authority gwen to the secretary to recoin worn and uncurrent subsidiary silver now in the treasury or hereafter received. l The bill makes continuing appro- priation for paying the difference be- tween the face value of such coin and l the amount the same will produce in | the new coin.
 To Refund at Two Per Cent. X distinct feature of the bill is in reference to refunding the three per cent. Spanish war loan. the two per cent. bonds maturing in 1907 and the | five per cent. bonds maturing in 1904. total of Ss39,000,00 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 a premium in cash to compensate them in measure for the sacrifice of interest which they make. The cash premium will be com- puted on a basis of the present worth of the old bonds at 2A per cent, and will be on April l, the date that the new two per cent. bonds will bear, S105.6S51 tor the threes, $111.6765 for the fours, and S110.o751 for each $10o of the lives. This exchange will save the government, after deducting the premium paid, nearly S23, ,0O0, ,000, if all the holders of the old bonds exchange them for the new ones.
 To Induce mn t.Nchange.
 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 deposit of old bonds will be taxed, as at present, one per cent.
 To Increase Circulation.
 
 national banking act. The law permits national banks with S25,000 capital to be organized in places of 5000 inhab- itants or less, whereas, heretofore the minimum capital has been $50,000. IL also permits banks to issue circulation on all classes of bonds deposited up to the par value of the bonds, instead of nf fa fore. This ought to make an immedi- ate increase in the national bank cir culation of something like $24,000,O00. as the amount of bonds now deposited to secure circulation is about S242, ,000,- 900. If 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 S616, ,000, ,000. The total circulation out standing is $253,000, ,000. There is, therefore, a possibility of an increase in circulation of $363, 1000, ,000, although the price of the new two per cent. bonds as already foreshadowed by market quotations in advance of their issue, promises to be so high that the profit to the banks in taking out cir culation will not be enough to make the increase anything like such a pos sibe tCtal.