Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1897-11-11
REFORM OF CURRENCY
Bullitt's Plan Laid Before the
Monetary Commission.
ITS PROVISIONS IN OUTLINE
National Bank Notes to Take the Place
of All Other Kinds OF Currency
Other National News.


its invitation, many interesting propo-
sltions for reform in the banking and
currency systems OF the country. and
among these Is one from John q. Bull
lit. Of Philadelphia. which, coming
highly Endorsed as it does by financial
authorities. has commanded great at
,ention and study. Mr.. Bullitt's plan
touches every branch Of the problem be-
fore the committee, and its provisions
in outline are as follows:
That all ou,staniin. currency oblica-
tions. amounting to about $500, 0oO.-
GOO. shall tie taken up and Cancelled.
bein. replaced according to business
exi.encies lunler the direction OF a cur
rency-boari commission. composed OF
the president. secretary of the treasury
and controller OF the currency, ny 8
yer cent bonds. There Is 10 be but one
kind OF currency. namely. national bank
notes. reisemabe in gold at the bank
III issue. and selected bank OF reserve.
ana these notes are 70 be issued cradu-
ally to replace United states oblisa-
,ious a. the latter are retired. These
notes are 70 he secured by a deposit OF
IS per cent in goli in the treasury, by
Is per cent in gold in the bank vaults,
AMI by a first lien upon all the banks
assets, ~ we'll as by a special provi-
sion giving the government the right TO
assess all national banks, when needed.
% make good the notes Of a defaulting
bank. the notes Of which would then
lie redeemed by the government. a
lax i 70 lie laid upon the banks TO
cover the expenses Of the currency
board. arl the balance held 10 secure
REDEMPTION Of notes in gold; but ii
this exceeds Sl0, 0u0. 900. the surplus
may te covered into the treasury 10 pay
interest on United States bonds and
ioF general purposes This tax should
be 1, Of yer cent. or per cent per
annum. a. the comm sson shall elect.
Power should be given TO banks, under
permls> ion from the currency board. 10
increase the note issue " hen there is a
demand caused by an unusual financial
emergency. such increase 10 De subject
TO a tax Ito be determined from time 70
time 10y the currency board upon the
notes while in circulation. the tax
uuon the notes'to be At rate which
would put pressure upon the banks to
take III the notes WHEN the emergency
had passed.
Silver and subsidiary coins should be
redeemed in gold by the United States
government when demanded. These
amount 20 about 800, 900, 900. No
notes should be issue,i for less than IS.
National banks should De constrained
10 exchange notes now out for new
issues by surreniering notes as they
receive them.
Customs demands and taxes OF all
kinds due TO the government should be
payable one..hiri in old and two.
thirds in bank notes This is necessary
10 supply the government with the gold
required by it TO pay interest upon
United States bonds, redeem silver.
and for other purposes.
The legal-,ender quality OF gold AMI
silver should remain as now provided
by law. and they should be the only
legal tender, except 10 the extent OF
two-thirls Of customs duties and taxes
"ue me -p' e' Ni44eHt' WHICH snou!u Ue
payable IN BANK note as above stated.
Confer upon the currency board the
power 70 regulate me issue Of bank
notes from time in lien Of the govern
ment currency retired. and 20 author
lie new banks ana branch banks TO Dc
esiaolished' when and where, ana with
such amounts OF capital, az the board
J I
power also TO increase the amount OF
note issue by the banks required for