The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1900-03-16
THE FINANCIAL BILL. AWFUL HOLOCAUST.
Secretary Gage Explains the Pro-
visions of the Measure.
CIRCULATION OF NATIONAL BANKS.
Comptroller Dawes Speaks About the Re-
quests for National Bank Charters and
Says His once WIN Endeavor to
Prevent Fraud.

Comptroller Dawes speaks ABOUT tine he-
quests for National Bank Charters and
Says His once WIN Endeavor to
Prevent Fraud.
Washington, March 14.-Secretary
Gage yesterday made the following
statement in explanation of the pro-
vision of the financial bill, which
passed the house: 1.-THE financial
hill, which now awaits only the sigma
ture of the president to become law,
has for its first object what its title
indicates, the fixing of the standard
of value and the maintaining at n
parity with that standard of all forms
of money issued or coined by the
United States. II reailirms that the
unit of value is the dollar, consisting
of 2j $40 grains of gold 0-10 fine,
but from that point it goes on 60
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
to do that. For that purpose the bill
provides in the treasury bureaus of
issue and redemption, and transfers
from the general fund of the treas
urys cash S150,00O,OOO in gold coin
and bullion to the redemption fund,
that gold TO be used for the redcmp-
ton of United States notes and treas
ury notes. That fund is henceforth
absolutely cut out of and separated
from the cash balance in the treasury.
and the available cash balance will
hereafter show reduction of $780,
100000 from the figures that have
heretofore prevailed. This S150.00O,-
600 redemption fund is to be used for
no other purpose than the redemption
of the United States notes and treas
ury notes, and those notes 40 re-
deemed NAV he exchanged for gold i'm
the general fund or with the public
so that the reserve fund is kept full
with gold to the OOO0OOO limit.
The bill provides for larger issue
of silver certificates by declaring that
hereafter silver certificates shall be
> issued only in denominations of SIC
and under, except as to ten per cent
of the total volume. Room is made
for this larger use of silver certid
/
other provision which makes it nee
essary as fast as the present silver
, certificates of high denominations ar,
broken up into small bills to cancel {
similar volume of United States notes
of small denominations and replac,
them with notes of denominations o.
$40 and upward. Further room i,
made for the circulation of small sill
yer certificates by a clause which per
! mits national banks to have only one
third of their capital in denomina
ton under $40.
. zone clause of the bill which tn,
:, public will greatly appreciate is thu
. right that it gives to the secretar,
; to coin any of the 1890 bullion int,
d. subsidiary silver coins up to a limit o
SlOO,0OO,OOO There has for years beer
IA scarcity of subsidiary silver during
periods of active retail trade, but thi
= provision will give the treasury ampl
opportunity to supply all the subsi
diary silver that is needed. Anothe
!, provision hat the public will great.
! appreciate is the authority given t.
- the secretary to recon worn and un
current subsidiary silver now in tn
treasury or hereafter received.
= National banks are permitte,
under the law to issue circulation NJ
u to an amount equal to their capt
tai. The total capital of all nationa
j. banks is S616,OOO,O 900. The total cir
u culation outstanding is 1888, 100000
There is, therefore, a possibility o
an increase in circulation of $363, 900
" ! 600, although the price of the nel
two per cent. bonds, as already fore
e Swallowed by market quotations in nd
vance of their issue, promises to b
so high that the profit to the bank
" in taking out circulation will not b
{ enough to make the increase any
i thing like such possible total"
= Comptroller Dawes when aslle
4 what his course would be in conneC
Is ton with requests for national ban
r charters under the new law said
IS "The question of the best method
u of preventing the abuse of the neN
law, which authorizes the establish
n ment of banks of $4,000 capital i
towns with not exceeding 5000 POI
u ulation, has had my careful consider
It alton. The law places the power G
p granting national bank charters i
II the hands of the comptroller and AT
E. thorizes him to refuse them if he ha
4, reason to believe that improper us
9 is to be made of them.
" at is essential to the welfare of tn
e community that great care should b
y taken in this matter, and this offic
k will endeavor in every way possibl
l. to prevent fraud and do its duty"