Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-02-26
Is Firmly Fixed BY the New
Financial Bill.
~OvERSTREET in CHARGE
Of the Bill Says That This Will be the
Result-He Tells What the Pro-
visions O fAthe Act Will Mean to the
Business World.

New York, Feb. 25.-A special to the
Herald from Washington says: Repre-
sentative Diversified of Indiana, who has
charge Of the financial bill in the house,
discussing the merits of the measure
as agreed upon by the conferees. said:
ut esta blishes the gold standard be-
yond dispute. 1t not only defines the
gold standard but it requires the main
tenance of all forms of money at a par
itv with that standard and imposes up
on the secretary of the treasury the man
dtatorv duty of maintaining that stand
ard. The absolute separation OF the
trust funds to be held in the division
nf issue and redemption from the fiscal
operations of the government will prove
a great educator, in that 1t will dem
osstrate in a simple manner that "a GER
titlcate is merely the evidence OF a fund
which is held in trust By the government
TO be paid on demand to it's holder.
'rhe establishment of a reserve fund,
with the safeguar ds which are provided
to reven nj the withdrawal of gr~eenpackS
and treasury notes when once redeemed
to be again presented for the purpose OF
withdrawing gold thoroughly lhtrehcnes
the gold
'In my opinion the unequivocal estao-
lishment of the gold standard Will o"
followed by stability in all business IN
which the country is Interested. II
dnsss. away with all the rear ana oouot
which confused business during the last
few years and establishes a uniform
basis of values on which all business
can rest. Contracts and settlements
of all kinds will be adjusted at once TO
This sta nda rdt and business conditions
win be greatly improved thereby, as
stability is an essential element IN all
business affairs in which tim and dis
ia nee are taken into account
II believe the refunding plan contain,
ed in the bill is sound economically and
that 1T will work in practice. 1t is true
that the rate of interest is lower tina
that at which any other government mas
been able to fund it's debt, but IN view
Of the fact that it is proposed at the
same time that the gold standard is be-
ing established and at a time when the
country is prosperous, I think the govern
ment will have little trouble In putting
1t into. operation. 49,
'The high premium on the present
bonds. and the high tax on national bank
circulation prevent any profit on CIR
cu,ation at present. Under the plan pro
rosed bal are permitted to
tute for their present high rate bonds
bond of comparat lively stable value, ane
at the same time they are allowed te
issue their note circulation to the PAL
value of the bonds with a reduction o.
the tax. 1t is expected that the bans!
will promptly make a change. For tn!
reason it Is believed THAT within a few
months a considerable proportion of thu
bonds now. held to secure circulation
will be surrendered for two per cen
bonds.
Authority to establish banks Of $25,
600 capital in small towns will no doub
result in the establishment of man!
small banks which will also use the new
two per cent bonds as the basis of thei
circulation.
"In my Judgment at least two-third
of the $3.50, 0O0, 900 bonds subject to re
funding will be surrendered in exchang
. for the new two per cent bonds within
a period which will be surprising to tn
public. Such a change will natural,
result in an increased volume of nation
al bank circulation. This increased vol
= ume will, in my Judgment amount t
800, 600, 900 in IL months. The rapid
increasing business of the country wi
absorb this increase without difficult
although I believe a lower Interest rat
on honey will also result"