Democratic Sentinel, Volume 7, Number 52, Rensselaer, Jasper County, 25 January 1884 — FINANCIAL LEGISLATION. [ARTICLE]

FINANCIAL LEGISLATION.

John Sherman’s Currency Bill. At the meeting of the Senate Finance Committee, says a Washington dispatch, Mr. Sherman proposed an important amendment to his own bill, designed to meet the objection that the measure would base the amount of circulation upon a fluctuating standard. He proposed to authorize the Secretary to issue national bank notes up to 90 per cent, of the face value of 3 per cent, bonds deposited as security for circulation. Where higher-rate bonds were deposited he proposed to compute the interest above 3 per cent, and allow a circulation to the amount of 90 per cent, of the aggregate interest over 3 per cent, for the whole time such bonds have to run. Thus, 4 per cent, bonds, having twenty-three years to run, on being deposited as security for circulation, would entitle the bank depositing them to receive currency at the rate of 110.70 for each 100 bond deposited, that being 90 per cent, of the face value and 90 per cent, additional for all excess of Interest over 3 per cent.