Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-02

ing will be ready to begin their print
ing soon after there is demand for
them. AS to how they will be issued
has not been decided. Depositors wish
ing them and unable to obtain them in
a subtreasury city may be furnished a
certificate. which can be exchanged in
Washington for a new bond.
The bonds will be in denominations OF
$50 and S1O0 and $500, both registered and
coupon. The law provides that they can
be issued in denominations OF $40, $50
and $50, but it has decided that SOS, $1OOs
and $Jo0s will be sufficient. Great care
has been taken in preparing both the size
and design. The registered and coupon
bonds Will be smaller than any other
bond Uncle Sam ever put out Even the
ming twenty years, will be little larger
than the present registered bond Of the
government The actual bond is only
slightly larger than the paper currency Of
fold conveniently for safe deposit boxes
in banks.
OF Simple Design.
The design of both coupon and regis
tered bonds is exceedingly simple, there
being no fancy nor meaningless engrav-
ings A vignette of Washington is the
only picture on either bond, and it is in
the center of the engraving.
1t is considered that the government will
save much money in papsr and printing
by making the bonds small and simple.
Secretary MacVeagh has appointed
committee to consider the plans for the
savings system especially with reference
to the immense labor that will be in
volyed in the accounting.
Preparing for Emergency Currency.
Decisions have been made by the Treas
ury OH interpretations of the Aldrich-
Vreeland law permitting the issue of
currency in times of emergency by cur
rency associations organized by national
banks in cities and states The law pro-
vides that additional national bank circu-
lation may be issued against deposits OF
state and municipal bonds upon which In
terest has not been defaulted in ten years
and where the net funded Indebtedness
does net exceed 10 per cent of the as
sessed valuation of the states or munich
palities. 1t has been decided positively
that the only exemptions that will be
made from the funded Indebtedness are
such bonds as have been repurchased for
sinking fund purposes and not Cancelled
Water bonds and similar bonds will not
be exempt from the net funded indebted
less.
The Treasury has also rendered q de-
cision upon what is meant in the law
by assessed valuation. In some states
and cities taxes are levied upon the en-
tire assessed valuation. while in others
the levy Is upon only a portion Of the
assessed valuation. Where the taxation
is upon the entire assessed valuation the
funded debt must not exceed the 10 per
cent provided In the law. There are
states and municipalities. however, where
the law specifically recognizes taxation
upon a fraction of the assessed valuation.
In this case the funded debt may be 10
per cent of the full amount In states
where this practice ia not recognized
legally the funded debt must not exceed
10 per cent of the taxable valuation, or
the total upon which taxes are collected.
These decisions are simply in prepara-
ton for a possible necessity for emer-
gency currency. The prevailing belief Is
that this currency will not be needed this
fall or winter.