The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1897-11-10
REFORM PLANS.
Mr.. JOHN C. BULLITFS
SCHEME.
1T is HIGHLY INDORsED,
es--Outstauding Currency obii-
cations TO De Replaced with
Per Cent Bonds-A Currency
Hoard to Have Full Con-
troll OF the Issue

WASHINGTON, Nov 49, The none
tary commission is receiving, in an
swer to its invitation, many interest
ing propositions for reform of the
banking and currency systems Of the
country, and among these IS one from
John c. Bullitt, which, coming highly
indorsed as 1t does, by financial au-
thorities, has commanded great atten-
tion aud study. Mr. Bullitt's plan
touches every branch of the problem
before the commission, and its pro-
visions, in outline, are as follows:
THAT all OF the outstanding cur
rency obligations, amounting TO about
$500, 600, ono, shall be taken up and
cancelled, being replaced, according
TO business exigencies under the di-
rection Of a currency board composed
of the president, secretary of the
treasury and comptroller of the cur
rency), by per cent bonds. There is
TO be but one kind of currency, name
! ly, national bank notes redeemable in
| gold at the bank of issue and "A select
ed bank Of reserve, and these notes
are to be issued gradually 10 replace
United states obligations as the latter
are retired.
"These notes are 20 be secured by a
deposit Of 10 per cent of gold in the
treasury by IL per cent of gold in the
bank's vaults and by first lien upon
all of the banks assets, as well as by
a special provision giving the govern
ment 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 DC laid
upon the banks TO cover the expenses
OF the currenay board, and the bal
ance held to secure redemption OF
notes in gold, but II this exceeds $40,
l0JO, 600, the surplus may be covered
Into the treasury to ray interest 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 banks,
under permission of the currency
board to increase the note issue when
demand is caused by unusual financial
emergency, such increase to be sub
icct TO 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 at q 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 500, 600, 600
No notes should be issued for les'
than s..
National banks should be con
strained TO exchange notes now oui
for the new issue by surrendering
notes as they receive them.
Customs duties and taxes of al
kinds due the government should b,
payable one-third in gold and two
thirds in bank notes. This is neccs
sary TO supply the government will
the gold required by it TO pay interes
upon its bonds, redeem silver and TO
other purposes.
"The legal tender quality of gol,
. and silver should remain as now pro
vided by law, and they should be the
only legal tender except TO the exten
Of two-thirds of customs duties an,
taxes due the government, whicl
should be payable in bank notes, a
above stated.