The Arizona daily orb., 1900-03-10
lhdQI PlpH OI COChISe Co.
SATURDAY. MARCH 10.
THE NEW FINANCIAL BILL.


 The gold bill agreed upon by the house and senate confeEees shows the world this nation's financial strength even more clearly than did the seven-fold subscription of the per cent war loan. No other nation has ever been able to sell at par its bonds with as low as per cent interest. This feat the United States is about to attempt, with no req sonable doubt of it's success.
 The present per cent coin bonds, which tue treasury may call in at pleas ure. are now quoted at 103. If new 3 per cent thirty.year gold bonds were to be sold for cash they would unques- tionably bring higher premium and be in great demand. As they are to be exchanged for existing 8, and 5 per cents at such prices as will make the latter equal to 2A per cent the process of absorption will be slower, but will none the less demonstrate the amazing eolidity of the national credit.
 The new bill makes the gold dollar the standard of value, and all other forms of currency must be maintained at parity with that standard. It is the duty of the secretary of the treasury to maintain the parity. To that end g gold reserve fund of $50, ,0O0, 900 is es- tablished, and notes redeemed in gold shall be paid out only for gold. This breake "the endless chain" If the reserve falls below $lOO, ,OOO. 900, and the treasury is unable to obtain gold for notes, it is authorized to sell gold bonds bearing not more than 3 per cent, and payable at pleasure after one year. But gold obtained for such bonds shall not be used to meet deficiencies in cur rent revenues, as was done under the Cleveland administration. To carry out these provisions the treasury is to es- tablish divisions of issue and redenip- tion. The general redemption fund, the silver dollars, and the gold coin held against the certificates are made trust funds, and can be used only for redemp- ton of the notes and certificates for which they are pledged.
 The silver dollar and all other forms of currency retain the legal tender quail ities given them by existing law. As fast as silver dollars are coined Sher- man notes of equal value will be can celled and silver certificates substituted. Not more than 10 per cent of the silver certificates are to be above $l0 in de. nomination. United States notes (green backs) of $10 or less will be substituted for 90 per cent of the silver certificates above $l0. Gold certificates of not less than $20 each will be issued in exchange for gold coin as long as the general gold redemption fund does not fall below $l0O,0O0,0O0.
 The effect of these provisions will be to retire gradually the Sherman notes, and thus lesson by one the varieties of currency in circulation. The current notes oi $l0 or less will be greenbacks, silver certificates, and some national bank notes, The currency will be in no way contracted. The limitation on the issue of gold certificates prevents holders of geld from making the treas ury warehouse and embarrassing the government by sudden demands for gold,
 National banks are authorized to issue notes up to the par value of their de- posted bonds, thus expanding the cur rency. But such issues shall not ex- ceed any banks paid in capital, and all present requirements to insure redemp- tion of notes are retained. To encour- age banks to increase their circulation and to exchange existing bonds for tho new ? per cents, the tax on notes iSsued against the new bonds is reduced from l per cent to one.half of per cent. Bank ing facilities are increased by permit ting national banks with $26,000 capital in towns of less than 5000 population. Retail exchanges will be facilitated by authority given to increase the volume of subsidiary silver coin to not more than $l00, 0,O0o, 900. Complaint as to worn silver is met by ths standing authority given to recoin it.