The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-11-08
REFORM OF THE CURRENCY.
JOHN c. BTLLITTS PLAN BEFORE
THE COMMISSION.
II Proposes the Retirement OF the
Greenbaeks by the Issuance of
Bonds and n New system OF
wAsurNcrnN -

WASHINGTON, Nov THE monetary
commission IS receiving II answer 70 its
invitation many interesting propositions
Cor q reform OF the banking and cur
rency systems OF the country, ard amen
these is one from John c. BallIit, which.
coming highly indorsei as il does by anan-
cial authorities has commanded great at
tentioa aud study. Mr.. BGlIitts plan
touches every branch OF the problem be-
fore the commission. and It's provisions IN
outline are as follows:
That all OF the outstanding currency
Obligations. amounting 70 about $50 90 90.
shall be taken Up and Cancelled, being re-
placed according to business exigencles
funder the direction Of a currency board
committee. composed OF the president. Sec
rotary OF the treasury and comptroller OF
the currency by 3 per cent. bonds. There
Is 20 be but one kind OF currency. name
-, national bank notes redeemahie In gold
al the bank OF issue. and selected bank Of
reserve. and these notes are 70 be issued
gradually 10 replace United States obliga-
tons as the latter are retired
These notes are TO be secured by a de-
post Of IS per cent. Of the gold in the
treasury. by i per cent. OF the gold in the
bank vaults and by first lien upon all
the banks assets. as Wei as By special
provision, giving the government the right
10 assess all national banks when needed
TO make good notes OF a defaulting bank.
the notes Of which would then be redeem
ed by the government.
A tax Is to be laid upon the banks 70
cover the expenses Of the currency board
and the balance held 10 secure redemp-
tion OF notes In gold; but II this exceeds
lo.n00o, the surplus may be covered into
the treasury to pay interest on United
States bonds ard for general purposes
This tax should be one-haif OF per cent
or per cent. per ann0m. as the commits
sion shall elect. Power should be given
10 banks, under permission from the cur
rency board. TO increase the note issue
when a demand is caused by unusual
financial emergency, such increase to be
subject to a tax Ito be determined from
time to time by the currency board upon
the notes while in circulation. the tax
upon the notes TO be az a rate which would
put pressure upon the banks to take up
the notes when the emergency has passed
Silver and subsidiary coins should be re-
deemed in gold by the United States gov
eminent when demanded. These amount
10 about 500 600 600 No notes should be
issued for less than S.
National banks should be constrained
10 exchange notes now out for the new
issue by surrendering notes as they re-
ceive them. Customs demands and taxes
OF all kinds due TO the government should
be payable one-thiri in gold and two-thirds
in bank notes. This is necessary to supply
the government with the gold required by
1t TO pay interest upon United States
bonds. redeem silver and for other pur-
poses.
The legal tender quality of gold and sill
yer should remain as now provided by law,
and they should be the only legal tender.
except to the extent Of two-thirds of Gus
toms duties and taxes due the government.
which should be payable in bank notes as
above stated.
Confer upon the currency board the
power to regulate the issue OF bank notes
from time to time. in lieu of the govern
ment currency retired, and TO authorize
new banks and branch banks to be estab-
lished when and where. and with such
amounts Of capital. as the board may deem
It proper and expedient. with power also
TO increase the amount OF note issue by the
banks required for the normal conditions
of business as the country shall grow In
population and business expansion.
AS banking capital may be increased by
the creation of new banks. the currency
board should have power to adjust the note
issue, whether normal or extraordinary.
between the new and old banks-no dis
tinction being drawn between them. The
Is per cent. gold upon the note issue, de-
posted in the government treasury. and
the Is per cent. kept in the bank vaults.
should be counted as part OF the . per
cent. reserve on deposit in national banks.
The system of clearing house certificates
adopted by the banks in the large cities in
times of panic should be legalized. They
have proved to be most salutary. and there
can be no better evidence OF the needs OF
such system than the fact that II has
been established by voluntary consent in
times OF panic.