Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-11
AGAIN IN SESSION
Reassembling Of the Monetary Com
mission.
SUBCOMMITTEES REPORT READ
Questions Submitted to Students
of Finance.
SOME SERIOUS PROBLEMS

The monetary commission reassembled at
the Arlington Hotel To-Day after a recess of
ten days. The members of the commission
who were present were Judge Geo. F. Ed
munds chairman; Mr.. T. G. Bush of Ala
bama Mr.. Chas. S. Fairchild of New York,
Mr.. ]. w. Fries of North Carolina, Mr..
Louis A. Garnett of California Judge Roo
crt s. Taylor of Indiana and Prof. ]. Lau-
renee Laugllin of Illinois. Mr.. l.. Carroll
Root and Mr.. II. Parker Willis are the sec
retaries of the commission.
The sessions of the commission will con-
tinue to be of an executive character. At
today's meeting the report of the subcom-
mIttee on metallic currency was presented
to the commission. This subcommittee con-
sists of Messrs. Patterson. Garnett and
Laughlin, and has been at work during the
recess upon the matter at hand. The re-
port is of a tentative character, presen ting
basis from which the commission can
discuss the subject, and is not to be given
TO the public
The data which the committee used in
the report were obtained from answers to
questions which were Gent during the re-
throughout the country. In that letter the
Following questions were asked:
Redemption of Silver.
Should or should not the silver dollars
and silver certificates be redeemed on de-
mand in gold? If redeemed, what reserves
should be provided and how? What, in
your judgment, would be the probable
amount of silver dollars and silver certifi-
Gates presented if direct redemption were
enacted? To insure the permanent inviola-
tllity OF the gold standard what legislative
measures would you recommend? For the
purpose of facilitating the use of existing
silver currency, what do you recommend
as the smallest denomination of United
States notes and bank notes which should
be put into circuIatiUn?"
As the replies were received they were
SUMMARIZED by the secretaries, and type
written copies Were prepared for the use
OF each member of the committee and the
commission we'll.
lhterrogatories were also sent under the
same cover in behalf Of the committee en-
demand obligations and the committee ON
the banking system.
DO You consider that there are any
dangers arising from allowing the United
states notes to remain as a permanent part
of our circulation? On what grounds. if
any would you favor the gradual but en-
1 1un witndrawal of the treasury notes of
1870 and of the United States notes? If
1t shall be decided to retire the United
states notes, how can it be done without
aiding to our bonded debt? How, in that
Sase, can provision be made for maintain
ing an adequate amount of currency avail
ape Tor purposes of business? If ii be
thought inexpedlent TO fund the United
safes notes, now can they be redeemed
WIN an assurance that bank currency will
take their place? Meanwhile what stcr,.i-
" or gold reserves would you Recommend? ''
IN case provision should be made for the
retirement of United States notes. how
couid their presentation for REDEMPTION he
pest secured? Should the government is
sues be Withdrawn only as bank notes are
put out! That is, if an elastic system of
paiik ISSUES should be adopted, would it be
ueslrabie TO define and maintain am given
quantity of circulation? Would the hanks
In TACT furnish the currency which the
country needs If the government notes were
Withdrawn?
The Banking System.
is II possible to rely upon national bonds
as security for bank note issues? Can any
sate and practical plan be devised for using
any other securities as a basis for bank
note issues? If bonds should be used ex-
clusively as basis for issues. would Il he
POSSIBLE thereby to secure an elastic note
crcuianon! II bank note issues be based
exclusively on assets of the bank is the
nature and extent of the security such as
enectually to protect the note holder
What limit should be set to such note is
sues! Since bank assets Gncludfng stock
holders liabilities, etc.) must be the means
OF ultimate redemption of such issues what
funds would you deem necessary to be held
as cash reserve for the immediate re-
teHpllOH OF the notes, and In what form
ana in whose hands?
In case of notes based on bank assets
what means can you suggest to obtain and
preserve high character of disrou1ts9
Can any watchfulness of other banks con-
nected by locality or business connectiaps
be brought to bear on a bank to prevent had
banking? Can such scheme be devised as
IN cities where clearing house ASSOCIATIONS
detect and punish weakness, by which coun-
try banks can be guarded? What plan of ey
q
ommend? What methods would Won sup
gest by which uniformity of note issues
based on assets could be secured through
out the country? If by redemption stste
where and how?
w nat, IL anything, beyond provision for
immediate redemption is needed for :ecur-
Ing the elasticity of note issues in neriods
Oh normal business? In times of panics or
sudden stringency, how would you provide
for additional issues By the banks 10 en-
able them TO continue discounts and pre-
vent commercial distress? OF what shouId
me pank reserves consist? Should any ma
liohai bank be permitted to pay interest on
,he current deposits of other banks? Should
the deposits of country banks in reserve
elites be authorized to be counted as a mart
OF the required reserve? What should be
the minimum limit OF capital for national
banks? Should the existing 10 per cent
tax on state tank notes be repealed: Should
any national bank be permitted TO estab-
hsh branches under Its single manage
any? Should branch banks be Obliged to
redeem the notes of the parent bank and
OF other branches? Should branch banks
be required to maintain any specified pro-
portion of reserves to liabilities indepen-
dent of regulations for the general accounts
of the parent bank?'
New Currency System.
Several important questions are present.
inS themselves to those members of the
commission who are studying the problem
OF strengthening the gold standard under a
new currency system. There is strong
feehnS in the commission In favor OF re-
tirins the Ereenbacks ana substituting n
banking currency. One of the diffic,iities
which has presented itself is the method of
maintaining the gold parity of silver coin
and silver certificates IL the government
sbandons It's gold reserve. The result of
paying gold for the redemption of the
sreenbacks until the gold reserve Should
be Cleaned up would be to leave nothing
tut silver in the treasury for REDEMPTION
purposes The outstanding forms OF gov
ernnent paper would then consist of silver
certificates and Sherman notes il the latter
we're not retired with the grcenbacks. Each
form of paper would be protected by an
ample fund of silver coin or bullion. bur
without dollar of gold. The treasury
might receive some gold In its currert re-
ceipts, but this would perhaps no: be suffi-
Client to maintain a gold fund, unless spe-