The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-11-08
MONETARY COMMISSION
Receiving Propositions For the Be-
form Of the Banking System.
The PLAN OF JOHN O. .BULLITT.

1t Gives Great Powers to a Currency
Board Composed OF the President,
Secretary of the Treasury and Comp
troller OF the Currency.
Washington, Nov. S.-The monetary
commission is receiving In answer to
its invitation, many interesting propo-
sitions for reform of the banking and
currency systems Of the country, and
among these is one from John c. Bull
lit, which. coming highly endorsed as
1t does by financial authorities, has
commanded great attention and study.
Mr.. Bullitts plan touches every branch
Of the problem before the commission,
and its provisions In outline are as fol-
lows:
That all of the outstanding currency
obligations, amounting to about $780,
100000, shall be taken up and can
celled, being replaced according to
business exigencies (under the direction
of currency board composed of the
president, secretary Of the treasury
and comptroller of the currency by 3
per cent bonds. There is to be but one
kind Of currency. namely. national
bank notes, redeemable In gold at the
bank Of issue and selected bank Of
reserve. and these notes are to be is
sued gradually to replace obligations
as the latter are retired. These notes
are to be secured by a deposit of is
per cent of gold in the treasury by is
per cent gold in the bank vaults and by
first lien upon all of the banks assets,
as well as by special provision giving
the government the right to assess all
national banks when needed to make
good notes Of a defaulting bank, the
notes of which would then be redeemed
by the government.
A tax Is to be laid upon the banks
to cover the expenses of the currency
board and the balance held to secure
redemption of notes in gold, but II this
exceeds $10,0O0,O0O this surplus may be
covered into the treasury to pay In
terest on United States bonds and for
general purposes. This tax should be
one-half of per cent or per cent per
annum, as the commission shall elect.
Power should be given to the banks
under permission from the currency
board to increase the note issue when
demand caused by unusual financial
emergencies, such increase to be sub
ject to tax Ito be determined from
time to time by the currency boardD
upon the notes while in circulation, the
tax upon the notes to be at 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
redeemed in gold by the United States
government when demanded. These
amount to about slOOO00.00O.
No note should be issued for less than
S..
National banks should be constrained
to exchange notes now out for new
issue by surrendering notes as they re-
ceive them.
Customs duties and taxes of all kinda
due the government should be payable
one-third in gold and two-thirds in
bank notes
The legal tender quality of gold and
silver should remain as now provided
by law, and they should be only legal
tender except to the extent of two
thirds of customs duties and taxes due
the government.
Confer upon the currency board the
power to regulate the issue of bank
notes from time to time in lieu of the
government currency retired, and to
authorize new banks and branch banks
to be established.
AS banking capital may be increased |
by creation of new banks the currency |
board should have power to adjust the |
note issue, whether normal or extra
ordinary, between the new and old !
banks-no distinction being drawn be-
tween them.
The system Of clearing house certif- |
Gates adopted by the banks in the large |
cities in times Of panic should be lie.
CALLED.
Il. O. Lcech, vice president of a New
York bank, has also presented paper.
He does not believe it necessary to re-
deem all of the silver coin and paper
in gold, as the wants of the people are
fully adequate to keeping in active
circulation the $3.50. 900 600 OF this money
now ailoat. Mr. Leech favors the re-
peal of the act of May 81, 1878, requr-
ing the reissue Of United States notes
coming into the treasury. and would
leave 1t optional with the treasury to
reissue these notes only in case of need.
This alone would insure the stability
of the gold standard.