New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-14
ISSUE OF GOLD CERTIFICATES.

The measure authorizes the issue Of gold GER
tificates in exchange for deposits OF gold CON-
the same as at present, but suspends that au-
thorty whenever and so long as the gold in the
redemption fund is below $10O.O00.OOo, and gives
to the Secretary the option to suspend the issue
of such certificates whenever the silver certifi-
Gates and United States notes in the general
fund of the Treasury exceed S4O,O0o,OOO.
The bill provides for a larger issue of silver
certificates by declaring that hereafter silver
certificates shall be issued only in denominations
of so and under except as to 10 per cent of the
total voiume Roome is made for this larger use
Of silver certificates in the way of small bills
by another provision, which makes it necessary
as fast 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 replace them with
notes of denominations of $40 and upward
Further room is made for the circulation of
mits National banks to have only one-third of
their capital in denomination under $40.
One clause of the bill which the public will
the Secretary to coin any of the 1890 bullion
into subsidiary silver coins up to limit of 500,
100000. There has for years been scarcity Of
subsidiary silver during periods of active retail
trade. but this provision will give the Treasury
ample opportunity to supply all the subsidiary
silver that is needed. Another provision that
the public will greatly appreciate is the au-
thority given to the Secretary to recon worn
and uncurrent subsidiary silver now in the
Treasury or hereafter received. The bill makes
a continuing appropriation for paying the diff
ference between the face value of such coin and
the amount the same will produce in the coin.
REFUNDING THE PUBLIC DEBT.
distinct feature of the bill is in reference to
refundng the per cent Spanish war loan, the
per cent bonds maturing in 1907 and the 5
per cent bonds maturing in 1gO4-a total of
SS39,0OO'oOo-into new = per cent bonds. These
new per cent bonds will not be offered for
sale, but will be issued only in exchange for an
equal amount face value, of old bonds. The
holders of old bonds will receive premium in
cash to compensate them in a measure for the
sacrifice of interest which they make. That cash
will Of
present worth of the old bonds at "a per cent,
and will be on April 1, the date that the =
per cent bonds will bear S105. 6S51 for the
IS. Sill .6765 for the As and $11O0151 for each
800 of the 5s. This exchange will save the
Governmsnt, after deductng the premium paid.
nearly S23,OOO.OOo, If all the holders of the old
bonds exchange them for the new ones. Ma
tonal banks that take out circulation based on
the new bonds are TO be taxed only one-half of
! per cent on the average amount Of circulation
outstanding. while those who have circulation
based on a deposit of old bonds will be taxed.
as at present. l per cent.
There some other changes in the National
Banking act. The law permits National banks
with $4,000 capital 70 be organized in places Of
three thousand inhabitants or less whereas here
tofore the minimum capital has been $50 600 II
also permits banks 10 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 heretofore This ought to make an imme-
diate increase in National bank circulation Of
something like S24 100000. as the amount Of
bonds now deposited to secure circulation Is
about S242. 100000. If the price of the new e
is not forced so high in the market that there
is profit left to National banks in taking out
circulation we may also look for a material in
crease in National bank circulation based on
additional deposits of bonds.
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 $616, 100000 The total circulation out
standing is S253.OO0,O00 There is therefore a
possibility OF an Increase in circulation OF
1868, OO0, 600, although the price of the per
cent bonds, as already foreshAdowed by market
quotations In advance Of their issue. promises -