into the United States Treasury the first half of 1 per centum in
accordance with the preceding section, the United States Government
shall thereupon refund all of the 2 per centum bonds or consols into 3
per centum bonds or agree to pay 3 per centum thereon; and thereafter
the Government shall pay 3 per centum interest upon all of said 2 per
centum consols.
COMMENT:--By this section all the 2 per cent bonds will be converted
into 3 per cent bonds and they will then be returned to the banks to
which they belong. They can then be sold by them, bringing into the
commercial fund of the country $730,000,000.
This change ought to enable the banks to loan money more cheaply to
the people; we must remember that the more expensive we make banking
in this country the higher the rates of interest will be; for, in the
end, the people bear every added burden.