The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-17
PLAN FOB CURRENCY REFORM.
MIR. i. b. TIEDEMAN ON THE WORK
OF THE MONETARY CONVENTION.

1
curing a Reform of the Currency
System-One of the Eight Plans
Submitted to the Convention Was
by MIR. TIedeman-He Recommends
the Abandonment of the National
Bank System and That All Banks
he Permitted to Issue Currency
Under Governmental Supervision
and Under Specified Conditions.
Mr.. Irwin B. Tiedeman, who attended the
national monetary conference at Indian
apoHs last week as delegate from the Sa-
vannah Board of Trade, returned yester-
day morning. Full reports of the proceed
ings of the convention have been publish
ed in the Morning News.
Mr.. Tiedeman, when seen by Morning
News reporter. stated that he was much
pleased with the convention. There were
present 297 business men, representing the
commercial bodies of practically every city
of importance in the United States. and it
was as fine body of men as he had ever
seen, Mr. Tiedeman said.
The question OF a reform in the curren-
cy of the United States and the manner
in which such a reform should be accom-
plished was earnestly and intelligently
discussed. There were only eight or ten
plans for currency reform submitted to
the convention, and one of these was by
Mr. Tiedeman.
Every plan submitted" said Mr.. Tiede-
man, starts out with the idea that the
government must retire it's treasury notes
safe and elastic currency, with the condi-
ton that the government retire from the
banking business. Some suggest, as
temporary eXpedient, that national banks
be allowed to issue notes up to the par
value of their holdings of bonds, and that
the annual tax on national bank issues
be reduced to one-fourth of l per cent. A
committee on resolutions was appointed,
and the various plans submitted to it.
That committee reported in favor of the
plan of the Indianapolis delegation for the
appointment of a monetary commission by
the President of the United States to con
slider the question of .currDnc reform and
to recommend a plan to congress. Should
this movement fail the executive commit
tee is to select a committee of eleven 10
form a monetary commission, and this
commission is to formulate a plan and to
submit the plan for approval to meet
ing of the convention, which the execu-
tive committee is empowered to call. The
executive committee was instructed TO use
its efforts with congress for the appoint
ment of a national monetary commits
sion.''
Mr.. Tiedeman said, however, that some
of the most influential members of the
convention and of the executive committee
itself, were opposed to any action by con-
gress on the line suggested, holding that
if a national monetary commission should
be appointed politics would in some man
ner creep in and the desire of the business
men for genuine currency reform be de-
feated or diverted in the interest of polit-
clans. For this reason these members ex-
pressed their intention of opposing any ac-
ton on this line by congress. Mr.. Tiede-
man was of the opinion that the best
course would be for the executive commit
tee to appoint it's own currency commission
with instructions TO submit plan OF cur
rency reform to a meeting of the general
body and after the adoption of a plan by
the general convention to then urge upon
congress the necessary legislation to carry
it into effect. He was inclined to think
that this would be the result. Congress
man Walker, chairman of the House COM
mittee on finance and banking, was one
Of the members of the convention and ex-
pressed himself as opposed to congressional
action for the reasons stated.
Mr.. Trademarks plan, which, submitted at
the convention, will be of general interest
to business men here and elsewhere, and
is published for the information of those
interested in currency reform. 1t is as
follows:
THE first step toward currency reform
is, that congress must enact a bill to
withdraw from circulation the United
States notes and treasury notes of the
issue of 1890. This is to be done either
by issuing interest bonds to purchase
orOI1 To n in,
or that the government shall not pay out
or reissue any of the above mentioned
notes, but when received, shall be can
celled and destroyed.
THE national banking act now exist
ing, which requires the deposit of United
States bonds as security to note circula-
ton, be repealed.
THAT the present 10 per centum tax
on state bank note issues be repealed
"All banks of not less than $50, 900 cap
ital excepting savings and private banks,
be allowed to issue circulating notes to
the amount of 100 per centum of its I'M
impaired, paid up capital. subject to
United States government supervision and
following rules.
Ten per centum of the amount of a
banks circulation must be deposited with
the treasurer of the United States, the
said amount to be either IN gold, gold
certificates, or United States bonds
'One-HalI OF one per centum tax to be
paid by each bank every year upon the
amount of circulating notes outstanding;
which is to be used to defray the expenses
of printing and maintaining this system.
That the note issues be prior lien
upon the assets of the bank, including
stockholders liability.
THAT ten per centum deposited with the
treasurer of the United States and what
accumulates from the yearly tax of one
half of one per centum to be used as a
guarantee fund to cover any loss that
should occur from insolvent banks.
'When a bank becomes insolvent the
treasurer of the United States must at
once commence to redeem the outstand-
ing issue of said bank either from the
funds that may be placed in his hands by
the insoivent bank at the time of the
failure for the purpose of redemption of
Its outstanding notes, or from the guar
antee fund should the insolvent bank fail
to be able to put up the amount sufficient
to cover it's entiEe outstanding issue. The
authorized controllers shall see that the
guarantee fund Is reimbursed when col
lections are made from the assets of the
insovent banks.
"a hank can at anv fir1a ratfra fts ctr