The times., 1897-11-08
THE MONETARY COMMISSION.
Has No Authority, but Claims to Rep
resent the business Community.

been In session here during tue past SIX
weeks is somewhat novel departure
There have been tariff commissions APP
pointed under authority OF Congress on
one or 1--WE occasions, but there has not
before been an expert commission deiio-
erately chosen forthe general consideration
OF the currency system. The present com
mission has no official authority, but Its
supporters maintain that it represents the
organized business muuity OF the
United States.
This declaration they base upon the
fact that the boards of trade Of the
country Were invited to send delegates
to a convention held In indianapolis last
January for the purpose of considering
the subject of the reform of the currency.
The convention appointed an executive
committee and adopted a series OF resolu-
lions, directing this committee to secure,
If possible, the appointment of d 'onns-
sion ,'y the 2 President under authority OF
Congress. This plan failed. The eXecu-
tive eomnittee then ayailed themselves or
their alternative authority, to themselves
appoint a commission of private citizens.
Mr. II. H. Hanna, OF indianapolis, was the
chairman of the executive committee, and
did much OF the work Of seeking proper
fnefobers OF the commission He held fire.
quent consultations with President Nc
Kiney and Secretary Gage in regard TO
the genei al st,ope OF the work, but these
officials It II said, had nothing to do With
the selection OF the individual members.
The conmiSsion contains six Republicans
and five Democrats, and the members come
frotH States as widely separated as Yer
mont and California, Alabama and Mime
sofa. There as great satisfaction among
the executive committee when ex-senator
EdmundS consented tt. serve Is chairman of
the colntuissJn. The high standing of the
Senator and lis acute legal knowledge
would, it was claimed, create favorable
iInpression upon the country. Most of the
other memters of the cunrnisSioI. are
business men
II was thought best to have at least
one trained political economist upon the
commission, and Prof. LauGhnn. Of the
University % Chicago, was selected as the
representative of this idea.
Tie work ul the monetary commission
is said to have been pursued with u good
deal Of srstrm and energy, wha teyer may
be Thought Ci the recommendations which
are finally submitted to the public. l was
not tie original Intention of the organizers
Of the movement to take any radical
posiJion regarding the metallic standard,
but it is probable that some effort will
oe made 10 harmonic the various forms
OF Government currency upon the existing
basis. Many advocates of currency reform
declare that a proper banking system
is OF sapreme Importance in d new country
whether the metallic basis Of the COMA &c
| is gold or silver.
It Is tow ard the creation Of such a bank
| Ing system that the efforts of the com
| mission ere being chiefly directed. The
| commission contains three members from
| the South, besides several from the West
! ana their efforts have been directed toward
| improving the monetary conditions pre-
| vailing in the South especially at tile sea-
| sou for moving the crops, when currency
/ is so scarcc. 1t Is generally expected that
| report win be made IN favor of banking
currencs. nased upon business assets.
THIS proposition viii not, it is claimed.
! be carried To extremes. and safeguards
| Will be provided, which, in the oplnion Of
! the commission, will obviate any danger
] Of the depreciation OF the bank notes or
| the failure TO redeem in fun in case of
| the suspension OF The bank. The argu-
/ ment made for banking currency based
upon business assets is that il permits the
! adjust ment Of the volume OF currency to
| the needs of business, the amount expand
ing wteu the discounts and deposits of
| the bank are large and contracting when
| business activity slackens
| Another feature which has been much
discussed by the commission, but upon
| which a final decision has not been made
is the creation of branch hanks. No ma
tional hank is now permitted TO esta bIish
braGch for the conduct OF general Ia nix
| ing business. The result is that only com
muni,ies having a CONSIDERABLE amounl
OF capital are now a bic to enjoy the ben
eflts of a national hank An effort w.
made to remedy this in the last Congress.
by reporting a bill reducing the min irnun
amount Of CAPITAL required fIom $50, 600
to $25,000. Many Of those who ha Va
recommended plans to the commission ha vt
urged that d bank be permitted to esta bIisl
branches at discretion
This would enable bank in q metronol
iCan city to scatter branches through tn,
surrounding country, where credit coui.
be Gbtained hy the LEGAL business men and
an excess OF deposits would be trans
ferred t. a nuint where there was a lack
of capital. The exposition of the opera
tiou Of this system in Canada and Scotland
and aElurg the several hundred branches
of the great European banks, has aroused
much interest in the commission. 1t /!
| felt thpt the Freedom of branch bapkin,
would do much, with a system of nor,
elastic note issues, to extend credit an(
reduce the rate Of interest III the Soutf
and West. 1t is possible, however, tina
existing national and State banks Woul,
have soneoppositiontom max to the branci
system; This opposition might be dinin
ished by providing that branches shoulf
not he established within q certain radiu
of an existing national Gr State bank
Questions like these have not received {
final determination, but is declared tba
their discussion by the commission has beer
extremely interesting and has brought th
members much nearer together than the7
were at tie beginning. There is a Stron,
feeling among the commissioners that n,
steps should be taken which would undul7
contract tie volume OF the currency. What
ever provision is made in regard 10 th
greenbacks or other Government notes
care viii be taken that they shall not b.
retired any more rapidly than new cur
rency is issued.
The commissioners began the discuSSio
OF these topics III d general way and spen
several days Ia an interchange of views
IO was then decided TO reduce their discus
sions to more concrete form, and three sut
committees We're appointed upon the sui
jects OF the coinage laws, the Governmen
demand notes, and the banking system
| 1t was decided at the same time to SEN
out series OF inteTogatories under thes