The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-01-04

adequacy and use of the gold reserve we
are bound TO enquire into the ability of tie
Treasury to maintain an equality Of value
between the silver dollar and silver GER
tihcate and the gold dollar without pro-
vision for direct exchangeability. Our own
experience and that Of other countries. no
tably France and Germany, clearly prove
that 10 IS possible to keep IN circulation at
a parity OF value with gold a large but
limited amount Of legal-tci.der silver OF
notes based upon such silver without any
provision for compulsory redemption in
gold.
BY the provisions Of the pending sub
stltuty all outstanding notes and certih-
Gates o. q less denomination than $40 are
TO be Withdrawn from circulation and sill
Yer certificates issued in their place The
amouur OF paper currency OF denominations
OF 81. 81. and s. in circulation on the Sotb
o. November. 1899, was 1921 $40. l5S- Ii
viii De- seen that these denominations prac-
tically absorb the entire amount OF out
standing silver certificates and viii give
70 silver notes a secure place in our cur
rcnCy system.
'The committee do not suggest any
changes in the status OF the silver dollar
or the silver certificate. We do not pro-
pose to take away from silver any Of the
UubuttuTN Privileges VI NINiVbaAlNS0 MH@N a.
Il now enjoys.
THE third section makes il the duty OF
the Secretary OF the Treasury, as fast as
standard silver dollars arr coined. as re-
quired by law. from the haiiiOn purchased
under the act Of July IA, 1890. to retire and
cancel an equal amount OF Treasury notes.
and provides that upon the cancellation OF
the notes silver certificates shall be issued
against the silver dollars so coined
Authority 20 Issue 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 IL 1882. The differences
are as follows:
First. The section suggested makes a
more specific pledge that the coin deposit
ell shall be held for the payment OF such
certificates on demand I, also provides
that n shall be used for no other purpose.
Second II provides more clearly that
the suspension of the authority TO issue
certificates shall only continue during the
time that the gold reserve remains below
500. Geo. GOO.
Third. Il provides that OF the amount
OF certificates outstanding az any time one
fourth at least shall De of denominations
Of $50 or less.
Fourth The Secretary Of the Treasury
is authorized in his discretion to issue gold
certificates in denominations Of $40. GEO.
payable 70 order. These certificates are
intended 10 take the place OF currency Ger
tihCates nov Issued In accordance with the
terms Of section 5l93 or the Revised Stat
utes. and this section is 10 be repealed
The Secretary OF the Treasury called the
attention or the committee to the fact that
the currency against which currency Certl-
Gcates are ISSUED iS held al the various
subireasuries at considerable risk 20 the
Government. The issuance OF these certi-
fcates was authorized principally for the
convenience OF banks. and tiese institu-
tons would he equally we'll served by the
issue Of gold certificates as suggested.
The fifth section provides that no
United States notes or Treasury notes shall
hereafter DE issued or reissued I'm denOmi-
nations OF less than SO. and all such notes
OF smaller denomination. whenever re-
deemed shall DE Cancelled and notes or
SO OF upward substituted therefor. 10 also
provides that no silver certificates Of "a
higher denomination than SO shall be is
sued
imtcrest-Bcarin& Bonds.
Taken in connection with the last part
% the seventh section. the effect OF the
Legislation suggested would be 10 with
draw from circulation all outstanding notes
and all certificates (except silver of de-
nOmin tons less than SO and TO issue in
their place silver certificates. / have al
ready stated. in my explanation OF the
provisions Of the second section. the rea,
sons which led tie committee 10 suggest
This course.
The sixth section OF the substitute
gives 10 the Secretary OF the Treasury Az
thority to convert a portion OF the national
debt into bonds bearing per cent interest.
The proposition coutempiatcs a profitable
anticipation OF interest payments and con-
sequeut reduction OF the public debt. The
transaction may be considered first as a
mathematical que ion OF profits and sec
ond as a question Of policy affecting the
public credit
The proposition recommended by the
committee Is 10 authorize the Secretary OF
the Treasury 10 convert the 3 Der cent
bonds due in 1904. the per cent bonds due
In 1897, and the per cent bonds due in
tsOs, amounting in the aggregate 70 1879 =
"S-.7SO. into . per cent bonds. PAYABLE al
the pleasure OF the United States after
thlfty years. On these three classes OF
ponds there Is az present an annual in
teTest charge Of So $50 $50 So