Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-01-04

Inc amount Of silver certificates in cir
culation on the list of December 1899 was
1894 2292. 800, and Of standard silver dollars
,4o4 total, of SAT-, So, 254. This
amount will be gradually increased by the
silver coinage which will take place under
the provisions of the act of June IS. 1895
both silver dollars and silver certificates
are by law receivable for all public dues,
and as long as the ordinary receipts of the
government are more than 5000 OOO, 900 per
annum 1t is very evident that silver certifi-
Gates are not likely to go to a discount
The government itself, in the absence of a
positive injunction, would be bound to
maintain the value Of this form of currency
through the ordinary business channels of
exchange for self-protection
THE committee do not suggest any
changes in the status of the silver dollar or
the silver certificate. We do not propose
to take away from silver any of the none
tary privileges or prerogatives which 1t
now enjoys. In fact, We believe that the
legislation suggested will greatly strength
en- its position in our monetary system.
To Retire Treasury Notes.
THE third section makes it the duty of
the Secretary of the Treasury. as fast as
standard silver dollars are coined, as re-
quired by law, from the bullion purchased
under the act of July Il, 1890. to retire and
cancel an equal amount of treasury notes,
and provides that upon the cancellation of
tHe uUteS silver CeTl1UCdteS snail be issued
against the silver dollars SO coined.
Issue of Gold Certificates.
1.-The fourth section authorizes and di-
reefs the Secretary of the Treasury to re-
ceive deposits of gold coin and to issue
gold certificates therefor in denominations
of not less than $50. The provisions of this
section are in most respects the same as
those contained in the twelfth section of
the act of July u 1882.
The purpose 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.
No Small Government Notes.
1.-The fifth section provides that no United
States notes or treasury notes shall here
after be issued or reissued In denomina-
lions of less than so, and all such notes of
a smaller denomination, whenever re-
deemed, shall be Cancelled and notes of $40
or upward substituted therefor. 1t also
provides that no silver certificates of a
higher denomination than $40 shall be is
sued.
Refunding the Debt.
THE sixth section of the substitute gives
to the Secretary of the Treasury authority
to convert a portion of the national debt
into bonds bearing 2 per cent interest. The
proposition contemplates profitable antici-
reduction of the public debt
I'm order to induce the holders of the
outstanding bonds to consent to the con-
version proposed, and in consideration Of
the reduction of interest effected thereby,
the Secretary of the Treasury is authorized
to pay to them in exchange a sum not
greater than the present worth Of such
bonds, computed to yield an income of 2A
per cent per annum and 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 Secre-
tary to pay without difficulty the $SS, 900 900
which would be required to effect this re-
duction of interest
"In fact. under present conditions and
with the necessity confronting us of more
promptly turning current receipts back into
the channels of business. the payments sug-
gested 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 opinion that 1t would
not place this portion of the national debt
beyond the control of the government.
I'VE trust that our expenditures will soon
be on a peace footing. but we must realize
that we shall have large disbursements for
some time to come. which it may not be
possible TO nay from the current revenues.
In considering the possibilities of the fu-
ture We cannot overlook the fact that the
national debts Of the world have increased
a an astonishing rate.
I'VE believe it Is impossible to overesti-
mate the advantage which would accrue to
the United States from placing It's national
debt unon per cent basis and Keeping
its obligations, issued at this rate, at par
in the markets of the world.
Desirable for National Banks.
BY the provisions of this bill we remove
all possible doubts and apprehensions as to
the character of our monetary standard
and make it clear to the world that we in
tend under all circumstances to keep all
forms of our currency equal in value with
gold and it would be a source Of national
pride if we could. in addition to this great
achievement, place the credit of the United
States on a higher plane than is occupied
by that of any other country.
lone of the principal reasons which led
the committee to recommend this plan of
conversion was that the bonds suggested
would be much more desirable as basis
for national bank note circulation than the
outstanding securities. 1t IS the duty of
Congress, in the public interest, to SO mod
ify the national banking act as to give to
banking associations an opportunity to is
sue currency with reasonable profit. If
the provisions of this bill are enacted into
law. We may reasonably expect a consid
cradle increase in the national bank note
circulation in the near future. and there is
no reason If the business of the country
demands it, why in time the outstanding
circulation should not equal the capitaliza-
ton of the banks.
Inc seventh Sect}on provinces tHat upon
the deposit of United States bonds by any
national banking association in the manner
provided by law such association shall be
entitled to receive circulating notes equal
to the par value of the bonds deposited.
1t also provides that any national banking
association now having bonds on deposit
shall be entitled to the same privilege.
Tax on Circulation Reduced.
1.-The eighth section provides that any ma
tional banking association having on de-
post as security for its circulating notes
bonds of the United States bearing inter-
est at per cent per annum shall pay tax
upon such circulating notes of one-haIf of
per cent annually instead of the tax of
l per cent now imposed by law. We be-
lieve this reduction In taxation is necessa-
sary to encourage national banks to in
crease their circulation, and it will I'M
doubtedly have the effect of promoting the
conversion of bonds provided for in the
sixth section
Promotion and appointment.
James A. Duvall a private of class 1 of
the police force, has been promoted to class
p vice G. E. Marshall, deceased, and Hol-
ton Wolfe and Robert Morris have been
appointed privates of class l.