The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-01-05
FINANCE
Continued from First Pageo

THE third section makes il the duty
OF the secretary OF the treasury. as fast
as standard silver dollars are coined. as
required by law. from the bullion pur-
chased under the act OF July "A. 1890. 70
retire and cancel an equal amount OF
treasury notes. and provides that upon
the cancellation OF the notes. silver Ger
tiicates shall be issued against the sill
YER dollars 50 coined
'~The fourth section authorizes and d.
rects-the secretary OF the treasury 70 re-
ceive deposits of gold coin and TO issue
gold certificates therefor in denominat tons
Of not less than $50. The provisions Of
this section are in most respects the same
as those contained in the twelfth sec
ton of the act OF July T. 1882 The pur-
pose OF the section, as a whole, is TO give
certain and active monetary use to the
large and rapidly increasing amount OF
gold IN the country.
The fifth section provides that no
United States notes or treasury notes
shall hereafter be issued or re-iSsued In
denominations OF less than SIC, and such
notes OF a smaller denomination. when
ever redeemed, shall be cancelled and
notes of $40 or upward substituted there
for. It also provides that no silver GER
tihcates Of a higher denomination than
SO shall be issued
The sixth section OF the substitute
gives to the secretary Of the treasury
authority 10 convert a portion OF the ma
tional debt into bonds bearing ? Per cent
interest. The proposition contempiates a
profitable anticipation OF interest pay
ments and consequent reduction of the
public debt. In Greer to induce the hold
ers of the outs. anding bonds 10 consent
to the conversion proposed. and in con-
sheraton of the reduction OF interest ef-
fected thereby. the secretary OF the treas
ury is authorized 10 pay to them in ex-
change sum not greater than the pres
ent worth Of SUCH bonds, computed 70
yield an income Off "a per cent per an
mum at their par value. The surplus in
the treasury over and above the amount
required for an adequate working balance
and for the reserved fund created by this
bill would allow the secretary 10 pay
without difficulty the SNSeo0.o00 which
would be required 10 effect this reduc-
ton of interest. In fact, under present
conditions and with the necessity con-
fronting US of more promptly turning cur
rent receipts back into the channels Of
business, the payments suggested would
afford welcome relief from dangerous
congestion
Mr.. Aldrich. in discussing the effect OF
this transaction in the national debt, said
the committee was OF the opinion that il
would not place this portion Of the ma
n Iah ha IL 81
eminent
I'VE trust that our expenditures will
soon be on a peace footing, out we must
realize that we shall have large disburse-
ments for some time TO come. which Il
may not be possible to pay from the cur
rent revenues. In considering the posi-
bilities of the future we cannot overlook
the fact that the national debts OF the
world have increased as an astonishing
rate We believe it is impossible 20 over
estimate the advantage which would ac-
crue to the United States from placing
its national debt upon a per cent basis,
and keeping its obligations issued at this
rate at par in the markets OF the world.
By the provisions OF the bill we re-
move all possible douvt and apprehen-
sions as to the character of our none
tary standard and make II clear 10 the
world that we intend under all circum-
setnces to keep all forms OF our currency
equal in value with gold and :; would
be a source Of national pride IL we could.
in addition to this great achievement.
place the credit of the United States on a
higher plane than is occupied by that OK
any other country.
'One Of the principal reasons which led
the committee 20 recommend this plan
OF conversion was that the bonds suggest
ed would be much more desirable az a
basis from national bank note circUia-
ton than the outstanding securities. II
is the duty of congress, in the public in
terest. 10 so modify the national bank
ing act as 70 give 10 banking associa-
lions an opportunity to issue currency
within a reasonable profit. II the pro-
visions OF this bill are enacted into law
we may expect a considerable Increase in
the national bank note circulation In the
near future. and there Is no reason. =
the business Of the country demands g.
why in time the outstanding circula ton
should not equal the capitalization % the
banks
~ seventh &Nf.ttpH pfoflNfe Anat upon
the deposit OF United States bonds BY any
national banking association IN the man
ner provided by law such association
shall be entitled 70 receive circulating
notes equal 10 the par value q the bonds
deposited. l. also provides thar any ns-
tionaI banking association. now having
bonds on deposit shall be entitled 10 che
same privilege.
The eighth section provides that any
national banking association having on
deposit as security FOR rs circulating
notes bonds % the United states bearing
interest At per cent per auuam shall
pay tax upon zuch circulating notes or
one half OF one per cent annually in-
stead q the tax % I per cent nov irn-
posed By law. We believe this rsdaction
IN taxation Is necessary - encourage na-
tioHsi 5snkE % increase their cifcuiation
and & viii undoubtedly have the EJECT
q FRONTING the conversion o. bonds pro-
vided for IN the ska section
A. the close % fhs speech TIE rsnzfs
went Into executive session. a6l0arning
AZ - O'clock unta next Monday.
SENATE COMMITTEE MATTERS