Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-01-27
House Passes The Mann
White Slave Bill.
Administrator Bills for Circu.
|ation Tax Presented.
Former Secretary Garfield eontin.
ues to Tell Of BalIIngar Bills.

Washington, Jan. 26.-The Mann
White slave bill was passed by a viva
voce vote in the House today without
material amendment from the form in
which, it was reported from the COM
mittee on interstate and foreign COM
merce.
During debate of two hours oppo-
sition to the measure was confined to
constitutional arguments against pro-
visions requiring keepers of brothels
to report to the commissioner general
of immigration about persons within
their houses who have come to the
United States within three years. 1t
vas argued these provisions infringe
upon states rights.
The Senate spent the day in consid-
GRAFTON of the Alaskan legislative
council bill and Sunday closing law
for the District Of Columbia
The administrators bills for modi-
flying the law regarding the issue of
United States bonds and certificates of
Indebtedness and for fixing the tax
rate on national bank note circulation
to maintain the parity Of the existing
two per cent. issue Of bonds, We're sub
mitted to Congress today by Secretary
of the Treasury MacVeagh. These are
designed to remedy conditions about
which there has been much public dis
cussion. The proposed circulation tax
act reads:
"Be it enacted, etc, that the rate of
tax on national bank circulation Sc
cured by bonds of the United States
hereafter deposited bearing rates of
interest greater than two per centum
per annum, whether the particular
bonds have or have not heretofore
been used to secure circulation. shall
be increased over the tax on circula-
ton secured by two per cent. bonds,
one-fourth of one per cent. each half
year for exchange every one-half of
one per cent. excess over two per cent.
in the rate of interest born by such
bonds"
The other proposed act, intended to
remedy defects in the law regarding
United States bond and indebted
note issues follows:
BE it enacted. etc. that any bonds
and certificates of Indebtedness of the
United States hereafter issued shall
be payable, principal and interest, in
United States gold coin of the present
standard of value; and that any such
bonds may be issued in such deromi-
nations as may be prescribed by the
secretary of the treasury
That any certificates of Indebtedness
hereafter issued shall be exempt from
all taxes or duties of the United States
as well as from taxation in any form
by or under state or municipal or local
authority; and that a sum not exceed
ing lilo of l per centum of the amount
of any certificate of indebtedness issues
hereby appropriated out of any money
in the treasury not otherwise appro-
priated to pay the expenses of prepar-
ing, and advertising and issuing the
same
Both these proposed acts specify
that "all acts or parts of acts incon-
sistent with the provisions of this act
are hereby repealed
Secretary MacVeagh in accompany
ing letters. says:
1.-The tax on circulation now based on
2 per cent. consolS of 1890 and per
cent Panama canal bonds is at the
rate of 4 of l per cent each half year
circula ton. The tax on all other issues
of United States bonds is at the rate
of e of ! per cent. each half year on
the average amount of notes in circu-
lation.
"These rates operate as discrimina-
ton against the $73OOOO, 900 of outstand-
ing 2 per cent. bonds. AS these bonds
are only slightly above par and as au-
thoritv now exists for the issue of
bonds for the construction of the Pam
anna canal to bear not exceeding per
cent. interest the issue of any consid-
cradle amount of such new bonds
which under the existing law would be
available as a basis for circulation at a
tax of only 1 per cent. per annum
would cause them to be considered a
much more desirable investment than
the existing per cent. bonds and
doubtless cause the per cent. bonds
to decline in the market probably be-
low oar.
1T is exceedingly important that the
market value of these per cent. bonds
should be maintained at above par
since any decline below par would
probably oblige the comptroller of the
currency to call on the banks employ
ing such bonds as basis for circula-
ton to make god the deficiency