The Washington times., 1901-10-04
The Monetary Standard.

An esteemed correspondent pro-
pounds the following questions:
"First-What phrase or declaration in the act
OF March a. 1850, placed the finances OF the
country single gold basis2
.'second-May national banhs issue notes to the
full amount OF the par value Of the bonds de-
posted in the Treasury?
''Third-W hat tax is now imposed upon national
bank circulationT
The act OF March Il. 1900, provides as
follows:
Section !. That the dollar consisting of twen-
ty-ve and eighi-tenths grains of gold nine-tenths
fine as established b, section 35lI Of the Re
vised Statutes Of the United States, shall be the
standard unit OF value, and all forms of money
Issued or coined by the United states shall be
maintained parity Of value with this stand
ard, and it shall be the duty of the Secretary OF
the Treasury maintain such parity.
Section q That United States notes, and
Treasury notes issued under the act of July II,
1880, when presented to the Treasury for redemp-
ton shall be redeemed in gold coin of the
standard fixed in the rst section Of this act, and
in order TO the prompt and certain re-
demption of such notes as herein provided IL
shall be the duty OF the Secretary Of the Treas
ury set apart in the Treasury reserve fund
OF SI50.OO0Oc0 in gold coin and bullion which
fund shall be used for such redemption purposes
only"
Silver dollars and silver certificates
are not, in terms made redeemable in
gold, and it is expressly provided that
nothing in the act shall be construed
to affect the legal tender of the silver
dollar or Of any other money coined or
issued by the United States. If the sill
yer dollars and certificates are held TO
be so redeemable, IL must be under the
general provisions of the first section
requiring the Secretary to keep all
rif b
gold Some of the more extreme advo-
Gates of the gold standard have claimed
that this is a serious defect in the law.
During the last Presidential campaign
Secretary Gage stated in substance that
the act needed amending in this respect,
because while gold standard Secre-
tary undoubtedly would maintain the
parity OF the metals, one who did not
believe in that standard might not con-
strue the law as requiring the gold re-
demption Of silver. If the law is defec-
tive in this respect, It is the fault of
those who framed 1t, and they were
ayowedly gold standard men.
The second question may be an
swered in the affirmative. Section y Of
the act of March IA, 1900. provides:
THAT upon the deposit with the Treas
urer Of the United States, by any national
banking association of any bonds Of the United
States in the manner provided by eAisting law,
such association shall be entitled to receive from
tho COMPTROLLER Of the Currency circulating notes
in blank, registered and counterigned pro-
vided by law equal in amount to the par value
OF the bonds 50 deposited; and any national bank
ing association nov having bonds deposit for
the security Of circulating notes, and upon which
an amount Of circulating notes has been issued
less than the par value Of the bonds shall be
entitled upon due application 10 the Comptroller
Of the Currency, TO receive additional circulating
notes in blank 10 amount which will increase
the circulating notes held by such association
to the par value OF the bonds deposited"
The tax upon bank circulation is re-
duced from one-half of one per cent
upon the average amount OF notes in
circulation 10 one-fourth of one per
cent.