The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-14
EXPLAINED BY Mr.. GAGE |
4 Statement Concerning the OBJ
jects of fhe Financial Bill.
Ample Power Given the Secretary of
the Treasury to Maintain All
Forms of Money at n Parity With
the Gold StRndRrd-Dinerent FeH-
tures of the Measure Discussed.

ne tlEdntldE Dill Nultu was DdS5tu b9
the House yesterday afternoon will have
/ a marked effect on the administration
Of the Treasury Department, and Secre-
tary Gage has been making preparations
for some time TO carry out the provisions
OF the measure. Some of the chief proyi-
sions of the bill we're either suggested by
Mr.. Gage or were adopted after Consulta-
tons between him and the Senate and
House leaders. After the passage of the
bill the Secretary made this statement:
The Financial bill which now awaits
only the Presidents signature to become
law, has for its object what its title
indicates-the fixing Of the standard Of
value and the maintaining at parity with
that standard OF all forms OF money Issued
( or coined by the United States. It re-
affirms that the unit of value is the dol
lar, consisting of twenty-five and eight
tenths grains of gold, nne-tenths fine, but
/ from that point it goes on to make 1t the
duty of the Secretary Of the Treasury to
maintain all forms Of money issued or
coined at a 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 re-
demption. and transfers from the general
3
gold coin and bullion to the redemption
fund, that gold to be used for the redemp-
tion Of United States notes and Treasury
notes. That fund is hencefOrth absolutely
cut out OF and separated from the cash
I balance in the Treasury, and the availa-
bic cash balance viii hereafter show re-
/ ductiOn OF $3.50. 000. 900 from the figures
that have heretofore prevailed. This
$3.50 600 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
gold to the $3.50, 100000 limit.
The Secretary is given further power.
II redemptions go on so that the gold in
this reserve fund Is reduced below $780,.
C00 600 and he is unable TO build 1t up to
the 1856, 600 600 mark by exchange for gold
in the general fund or otherwise he Is
given power to sell bonds, and 1t is made
his duty to replenish the gold to the Sl50,-
coo 900 mark by such means.
The endless chain IS broken by pro-
vision which prohibits the issue Of notes 50
redeemed to meet any deficiencies in the
current revenues. The act provides for the
ultimate retirement Of all the Treasury
notes issued in payment for silver bullion
under the sherman act. As fast as that
bullion is coined into silver dollars, Treas
ury 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
suspends that authority whenever and so
long as the gold in the redemption fund is
below Sl00. coo COO and gives 10 the Secre-
I taTy the option to suspend the issue OF
such certificates whenever the silver GER
tihcates and United states notes in the
general fund of the Treasury exceed 500
COO0C0.
The bill provides for larger issue OF
silver certificates by declaring that here
after silver certificates shall be issued only
in denominations Of SO and under. except
as to 10 per cent Of the total volume. Room
is made for this larger use OF silver GER
tiicates in the way Of small bills by an.
other provision which makes IL necessary
as fast as the present silver certificates OF
| high denominations are broken uD into
small bills 10 cancel q similar volume Of
, United states notes Of small den0mina-
tions ard replace them with notes Of de-
nominations OF SO and upward. Further
room is made for the circulation Of small
silver certificates by a clause which per-
mits national banks to have only one OF
their circulation in denomination under so.
"One clause Of the bill which tho public
Will greatly appreciate Is the right that
II gives to the Secretary to coin any OF
the 1890 bullion into subsidiary silver
coins up to the limit Of 800. 900 COO There
has for several years been a scarcity Of
subsidiary silver during period Of active
retail trade. but this provision will give
the Treasury ample opportunity TO supply
all the subsidiary silver tha- is needed.
Another provision that the public will
greatly appreciate is the authority given
to the Secretary to recon all worn and
uncurrcut subsidiary silver now in the
Treasury or hereafter received. The bill
makes a continuing appropriation for pay
ing the difference between the face value
Of such coin and the amount the same sill
produce IN the new coin.
"A distinct feature of the bill is in
reference to refunding the per cent Span
ism war loan. the per cent bonds ma
turing in 1907. and the 3 per cent bonds
maturing in 1904, a total Of $500 noe. 600,
into new per cent bonds. These new
bonds Will not be offered fer sale but Will
only be assigned in exchange for an equal
amount, face value Of old bonds. The
holders Of old bonds will receive a pre-
mium in cash to compensate them in a
measure for the sacrifice Of interest which
they make. That cash premium viii be
computed on a basis Of the present worth
of the old bonds at . Ia per cent, ard will
be on April l. the date that the new per
cent bonds will bear lO5.6S5l for the 3s,
III 67s5 for the As, and 11O.G75I for the
as This exchange will save the Govern
ment after deducting the premium paid
nearly S23. 600 600 II all the holders Of
/ the old bonds exchange them for the new
/ ones National banks that take out cir
culation based on the new bonds are to be
taxed only one-half Of 1 per cent on the
average amount of circulation outstand-
ing while those who have circulation
based on a deposit Of old bonds will be
taxed. as at present, l per cent
There are some other changes in the
National Banking act The law permits
banks with $4,000 capital to be organized
in places Of 3,OCO inhabitants or less
whereas heretofore the minimum capital
has been $4,000. 1t also permits banks to
issue circulation on all classes Of bonds
deposited up to the par value Of the bonds
instead of 90 per cent Of their face. as here
tofore This ought to make an immediate
Increase in national bank circulation Of
something like $4,000. coo, as the amount
of bonds now deposited to secure circuIa-
tiou is about $2i2 600 eco
IF the price Of the new 2s is not forced
so high in the market that there Is no
progt left to national banks in taking ou,
circulation we may also look for a mate
rial increase in national bank circulation
baszd on additional deposits Of bonds Ma
tionsl banks are permitted under the Law
TO issue circulation up to an amount equal
to tbrir capital. The total OF all national
hanks is solo CG0 Geo. The total circulation
outstanding is S-53. .00o.Co0. There is. there
fore d possibility Of an increase in circu-
Iation of 1865 ogo.CG although the price Of
fine new . per cent bonds. as already fore
sbsdowed by market quotations in adyanc.
of their issue promises to be so high thar