The morning call., 1894-11-28
MONETARY REFORM.

Washington correspondence credits Mr..
Cleveland with purpose to present plan
for basis of currency to take the place Of
the complex system which has been de-
veloped out of recurring conditions. The
United States has now about 81 200. 600, 900
OF currency, including silver. which is held
to be redeemable in gold. Under our pres
ent laws the treasury is compelled to re-
ceive all kinds of currency at its face
value, and consequently has no certain
gold revenues. The proposition to make
custom dues payable in gold, in whole or
in part, is met by the assertion that 1t
would only put debtors to the treasury to
the trouble of going to a sub-treasury with
currency and getting gold for it in ste ad of
paying currency directly to the treasury.
There does not seem to be any reply to
this objection. Holders of currency can
get gold for ii, whether the gold is TO be
used in buying bonds or in paying duties.
1t has been intimated that the Presi-
dents plan would be more or less radical
modification Of what is known as the Bal
timore plan. The features of this plan
have thus been summarized:
Section 1. The provision requiring the de-
post Of bonds 10 secure circulating notes here
after issued shall be repealed,
Sec. 2. All the banks to Issue circulating
notes up to 90 per cent of their paid capital.
subject to tax of one-half Of l per cent year
on the average circulation outstanding. Pro-
vision is made, TOO. for emergency circula-
tion" TO the extent OF one-quarter OF the paid
capital, subject 10 an additional heavy tax.
Sec. 8. This tax of oDe-half Of 1 per cent to
be paid to the United States Treasurer, out of
which he shall defray the expenses of the
Comptroller Of the Currency and the expense of
printing notes, etc.
Sec. 4. The banks to maintain with the
treasury redemption fund equal TO per cent
of their average circulation.
Sec. 8. The system of redeeming notes to re-
main unchanged.
Sec. 6. Create guarantee fund by each bank
deposlting per cent on the first years circu-
lation ana one-half of l per cent per year
total, the notes OF insOvent banks to be re-
deemed out of this guarantee fund.
Sec. 2. The Government to have a prior lien
upon the assets OF each failed bank, and upon
the Liabilities of shareholders 10 restore the
amount withdrawn from the guarantee fund to
redeem its circulation.
Sec. g. Circulation can be retired by bank
at any time by depositing lawful money equal
TO the sum 10 be Withdrawn.
DEC. .. Inc business OF Dank being wound
up, the United States Treasurer and Comp
iroller may pay over TO the directors or liqui-
datOr the sum at the credit of bank in the re
demption fund. if satisfied that provision is
made for paying notes and taxes.
Under this plan the Government would
circulate DO currency and consequently
have none to redeem. 1t would furnish
banks with currency upon such security
as is provided in the plan. 1t passes over
to the banks whatever profit there may be
in providing he country with currency.
1t also leaves 10 banks the determination
of the amount of currency the country
needs. Assuming that the Government
may secure Itself for it's loaned notes, it
urrenders the power to supply the people
with other currency than that which the
banks put in circulation. A plan of this
character will meet with opposition from
all parties and factions of parties which
desire to see the currency of the country
paced on a broader basis than the use OF
gold solely affords.