The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-08
CHANGE IN THE CURRENCY.
nrroRM SCHEMES DURING IN ON
THE MONETARY COMMISSION.

,o,,r &. BuIIitt Presents One Which
commands Great Attentioh-PrO-
vides For the substitution of 3
Dor cent. Bonds For All the Cow
comments Outstanding Obliga-
.ions and n New Issue of National
Rank Notes-LegaI Tender Quali-
-, If Gold and Silver to Remain
Unchanged.
washington. Nov. THE monetary
commission is receiving in answer to it's
tovitation, many interesting propositions
for reform of the banking and currency
svstems of the country, and among these
&c one from John c. Bullitt, which COM
ipe highly endorsed, as it does, by finan-
ciaI authorities, has commanded great at
+ention and study. Mr.. Bullitts plan
touches every branch of the problem be-
fore the commission and its provisions in
outline are as follows:
That all of the outstanding currency
n obugations amounting to about $500, 900, 900
4 shall be taken up and cancelled, being re-
nlaced according to business exlgencies
4 by three 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 a select
ed bank of reserve, and these notes are to
be issued gradually to replace United
States Obligations as the latter are retired.
i These notes are to be secured by a deposit
of IS per cent. of gold in the treasury, by
Is per cent. of gold in the bank vaults,
and by a 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 cur
rency board and the balance held to secure
redemption of notes in gold, but if this
exceeds $1O,00OOOO the surplus may be COW
cred into the treasury to pay interest on
United States bonds and for general pur-
poses This tax should be one-half of one
Per cent.
Power should be given to banks to in
crease the note issue when demand is
caused by unusual financial emergencies.
silver ana COlnS SIlOulu De
redeemed in gold by the United States
government when demanded. These
amount to about $1000O0,OO0
No note should be issued for less than
five dollars.
National banks should be constrained
to exchange notes now out for new issue
by surrendering notes as they receive
them.
Customs duties and taxes Of all kinds due
b1 crcy y1rr,r,o ..t1f CHI he
third in gold, and two-thirds in bank
notes.
The legal tender quality of gold and sill
yer should remain as now provided by
law, and they should be the only legal ten
der except TO the extent of two-thirds of
customs duties and the accounts due the
goyernSaent, which should be payable in
bank notes as above stated.
Confer upon the currency board power
to regulate the issue of bank notes from
time to time in lieu of the government cur
rency retired, and to authorize new banks
and branch banks to be established when
and where, and with such amounts of cap
ital as the board may deem proper and eX-
pedient, 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
in business expansion.
The 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 extraordi-
nary between the new and old banks
no distinction being drawn between them.
The Is per cent. gold upon the note issue
deposited in the government treasury and
the 10 per cent. kept in bank vaults should
be counted as part Of % 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 need of such a system than the fact
that it has been established by voluntary
consent in times of panic.