Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-11-18


Notwithstanding the unpromising
outlook for move In favor OF currency
reform so far as Congress- is concerned,
the Baltimore sun considers natural
conditions unusually favorable for sue
cessfuI action. 1t il worth noting, it
says. that the increased supply of gold
has made the task OF settling our cur
rency permanently upon the gold basis
easier than at any previous time. Be-
fore the Klondike discoveries, which
competent authorities believe will prove
nearly as productive as the discoveries
mads in California and Australia in
the fifties, the worlds annual produc-
tion of gold was rapidly increasing. The
estimated production for 1897 is S240,-
600, 600. This is $50, 900. 600 more than
the worlds total annual production OF
both gold and silver twenty years ago
when the agitation for free silver coin
age began. The enormously increased
yearly output of gold has in fact com
plstely destroyed the primary PROPOSE
tion on which the free silver movement
WAS started namely that it nesded the
supply of both metals TO mako a sufli-
,cient volume of standard money. Gold
lie now being produced every year of
greater coming value than was the com
biued production of gold and silver in
the seventies and far into the eighties.
Every present condition and consid-
pration political commercial and mining
national and international, concludes
the Sun. is thus seen to favor the reor-
ganization of our currency system on
firm and durable basis of gold, 30 that
it will never again be at the mercy of
a sudden avalanche Of greenhacks upon
the treasury, requiring to be reiasued
as often as redeemed, and redeemed
again when ever presented. The iron Of
currency reform is hot, and the country
expects the coming Congress to strike it.
Mr.. g. G. Williams. president of the
Chemical National Bank of New York
City, in response to request made by
the Monetary Commission has sug-
gested tie following plan of currency
reform:
III That declaratory act be passed
by Congress making the word "coin"
in all United States bonds mean
"gold, or. what is preferable. making
new issue of - per cent bonus pay
able in gold, into which all tho issues
OF United States bonds may be merged /;
these bonds to be receivable Bs security
at par for national bank notes. which
notes the banks should be required to
redeem at all times in gold.
q. That all legal tender notes should
be got out of the way in due time, 10y
some auoh plan as this: la) Immediate
cancellation, or conversion into the new
212 per cent bonds, Of forty six millions
of the present legal tenders tb) The
issue of 5000, 600, 600 of bonds, inter
changeahle into legal tender notes at
any time, with interest at One per cent
per annum, all national banks being
allowed to hold these notes as part OF
their legal tender reserve, and fundable
after one year at the discretion of the
Secretary Of the Treasury, in amounts
not to exceed $50, 600, 900 annually, into
215 per cent bonds.
g. The remaining 500, 600, 600 oil
legal tenders to continue in circulation,
against which 500, 000 600 of gold
should be retained in the Treasury al
security for their redemption, and alac
as security for the maintenance of the
kinds with gold, which should be main.
tained under all circumstances; and,
as additional security for this. authorit,
should be given to the Secretary of thu
Treasury TO issue 5000, 600, 600 of ex
chequer bills for use as may be needed
to secure this parity and to meet any
unforeseen emergencies of the Treasury,
"A. The tax on national bank cir
culation to be reduced to one uuarte
of per cent. or merely enough to pa,
the expenses of the government il
maintaining it.
10. No national hanknotes to b.
Issued unless fully covered by United
States 21a per cent bonds, which, a
above stated. should be received at ma
for national bank circulation. Sucl
circulation, authorized at par on 81
per cent bond and the tax removed
would probably take the place OF tn
legal tenders Withdrawn.
The silver circulation,' Mr.. vii
liams adds, "should be maintained
beyond question on parity with gold
but think it can reliably bs countet
upon that such circulation as nov
exists would give no trouble with tn
legal tenders out of the way, and tina
it would be wise to legislate as little a
possible for the present in regard t.
iohfiuB tud luJur
legislation as events may from time {
time be developed. As for brancl
banks, / am quite indifferent sc
no objection to their being authorized
say, where the capital of the main ban
is one million; that it be allowed tie
branches; that is, one branch for ever,
one hundred thousand capital.
would further suggest in regard
legislation as to changes in the nationt
bank act that the restriction of 10 pv
cent of loans to the amount of the CAPT
tai be enlarged 30 as to include 10 pg
cent OF capital and surplus. One furthe
suggestion. and thar u.s. that the worth
less, dirty nickel coinH-.a disgrace I
our circulatiun-of which 50. Al al
worth only thirty two cents, be will
drawn from circulation and silver Eve
cent pieces be substituted in thei
place. !"
1t will, therefore be seen that tt
subject of currency reform is to b
brought to the front, no matter no
reluctant Congress and the administrl
tion may be to give ii consideration
1t has been demonstrated that Ii
Dingley Tariff. bill is a rank failurr
and that there can be no real confident
in business circles, and no real pro
perity until our Hadly disarranged Gu
rency system ia entirely reformed an
placed upon sound basis.