CONGRESS. (THE FINANCIAL MEASURE.) 



163 



" The first change from the House bill is in 

 phraseology and arrangement of section 1. While 

 l lie House bill originally confined the first section 

 to the definition of the standard of value, the 

 new section embodies with the definition the dec- 

 laration for the maintenance of parity of all forms 

 of money issued or coined by the United States, 

 and the duty of the Secretary of the Treasury to 

 maintain such parity. 



" The next change is in section 2, where the pro- 

 vision for payment of interest-bearing obligations 

 is omitted, for the reason that the same result is 

 obtained by the refunding of the public debt into 

 gold-bearing bonds. The provision for the pay- 

 ment of private obligations, in conformity with 

 the gold standard, is also omitted from section 2. 

 The provision in the same section relative to the 

 legal-tender quality of the silver dollar and other 

 money coined or issued by the United States is 

 placed in a new section, designated as section 3. 



" The next change is the arrangement relative to 

 the gold reserve fund for the redemption of United 

 States notes and Treasury notes. This provision 

 is found in section 4 of the House bill, but is 

 changed to section 2 of the bill agreed upon, and is 

 made a fixed amount of $150,000,000, instead of 

 one fourth of the outstanding United States notes 

 and Treasury notes. Provision is also made for 

 replenishing said fund whenever reduced below 

 $100,000,000. In this change the reserve fund is 

 limited exclusively to the redemption of United 

 States notes and Treasury notes, and the provi- 

 sions for maintaining said reserve fund are modi- 

 fied by directing specifically that such fund may 

 be replenished by exchange of redeemed notes for 

 gold from the general fund of the Treasury, or 

 by exchange for gold under section 3700, Revised 

 Statutes. A further change in this same section 

 permits the use of United States notes, when re- 

 deemed, for the purchase or redemption of any 

 bonds of the United States, or for any other law- 

 ful purpose the public interest may require, ex- 

 cept that they shall not be used to meet defi- 

 iencies in the current revenues. 



" The next change is in the phraseology of sec- 

 ;ion 3 of the House bill, which is made section 4 

 of the new bill, relative to divisions of issue and 

 redemption, which changes specifically direct the 

 use of the funds pledged for the redemption of 

 outstanding notes and certificates to the sole pur- 

 pose of such redemption, said funds being held as 

 trust funds. 



" The next change is the acceptance of the sec- 

 tion in the Senate bill, being section 5 of the bill 

 herewith submitted, providing for the retirement 

 and cancellation of United States Treasury notes 

 whenever received into the Treasury, such cancel- 

 lation to take effect as standard silver dollars are 

 coined, under the provisions of the acts of July 

 U. 1890, and June 13, 1898. 



" The next change is the acceptance of the Sen- 

 ate provision, being section 6 of the bill herewith 

 submitted, authorizing the issue of gold certifi- 

 cates for the deposit of gold coin. The provision 

 in the Senate bill was modified by change of 

 phraseology, limiting the issue of such gold cer- 

 tificates under certain directions of the Secretary 

 of the Treasury. This section also contains pro- 



P'sion for the cancellation of United States cur- 

 ncy certificates. 

 " Sections 5 and of the House bill are accepted 

 and made sections 8 and 9 of the bill agreed upon, 

 the only change being a limitation of issue of 

 subsidiary coin to $100,000,000, instead of an un- 

 limited issue permitted by the repeal of the pres- 

 ent statute, as was originally provided for in sec- 

 tion (j of the House bill. 



cep 

 eie, 



tioi 



"The next change is in section 7, which is also 

 section 7 of the bill agreed upon. The original 

 House bill provided for the issue of United States 

 notes in such denominations, not less than $1, as 

 the Secretary of the Treasury might prescribe, 

 and the issue of silver certificates in denomina- 

 tions only of $1, $2, and $5, and the reconversion 

 of silver certificates of denominations above $5 

 into lower denominations. These provisions are 

 so changed that silver certificates shall be issued 

 in denominations of $10 and under, except that 

 not exceeding in the aggregate 10 per cent, of the 

 total volume of silver certificates may be issued 

 in denominations of $20, $50, and $100. All sil- 

 ver certificates of denominations higher than $10, 

 except the proviso concerning 10 per cent, of the 

 aggregate of certificates, shall, when received at 

 the Treasury, be retired and canceled, and certifi- 

 cates of denominations of $10 or less shall be sub- 

 stituted therefor, and a like volume of United 

 States notes of less denomination than $10 shall 

 be retired and canceled and notes of denomina- 

 tions of $10 and upward reissued in substitution 

 therefor. 



" The next change is the dropping out of sections 

 8 and 9 of the House bill. These two sections of 

 the House bill made provision for the increase 

 of bank-note circulation to the par value of 

 the bonds deposited, not exceeding, however, the 

 amount of the capital stock paid in, this principle 

 having been embodied in section 12 of the bill 

 agreed upon. 



" The next change is the dropping out of sec- 

 tion 10 of the House bill, which provided for the 

 taxation of franchises of national banks and the 

 repeal of the statute imposing a tax upon bank- 

 note circulation. 



" The next change is in section 1 1 of the House 

 bill, whereby the limit of population in a place 

 where a national bank of $25,000 capital stock 

 may be organized is fixed at 3,000 inhabitants, in- 

 stead of 2,000 inhabitants, as specified by the 

 House bill. This section becomes section 10 of 

 the bill agreed upon. 



"Sections 11, 12, and 13 of the bill agreed 

 upon make provision for the refunding of the 

 5-per-cent. bonds of 1904, the 4-per-cent. bonds of 

 1907, and the 3-per-cent. bonds of 1908 into 2- 

 per-cent. gold-bearing bonds. Permission is there- 

 by given to all national banks exchanging any 

 bonds of the above-mentioned classes for the 

 2-per-cent. bonds to increase their note circula- 

 tion to the par value of the bonds, not in ex- 

 cess, however, of the capital stock paid in; and 

 provides, further, that in case of such exchange 

 the tax upon the bank-note circulation of such 

 banks shall be one fourth of 1 per cent, each 

 half year upon the average amount of such of 

 its notes in circulation as are based upon the 

 deposit of said 2-per-cent. bonds. 



" Section 14 of the bill agreed upon provides that. 

 ' this act is not intended to preclude the accom- 

 plishment of international bimetallism whenever 

 conditions shall make it expedient and practicable 

 to secure the same by concurrent action of the 

 leading commercial nations of the world and at a 

 ratio which shall insure the permanence of rela- 

 tive value between gold and silver.' This section 

 has no legislative effect different from existing 

 law, and is merely declaratory that any future 

 effort in that direction shall not be foreclosed by 

 the enactment of this act. 



" The title of the bill remains the same as the 

 title of the House bill, except that the words ' to re- 

 fund the public debt ' are made a part of the title." 



The President approved the measure March 14, 

 1900. 



