Oregon union. [volume] (Corvallis, Benton County, Or.) 1897-1899, 1897-11-12
REFORM OF CURRENCY
Bul1itt's Plan Laid Before the
Monetary Commission.
ITS PROVISIONS IN OUTLINE

of All Other Kinds of Currency
Other National News.
Washington, Nov. 9.-The monetary
commission is receiving. in answer to
its invitation, many interesting propo-
sitions for reform in the banking and
currency systems of the country, and
among these is one from John G. Bull
litt, of Philadelphia, which, coming
highly Endorsed as it does by financial
authorities, has commanded great at
tention and study. Mr.. Bullitt's plan
touches every branch of the problem be-
fore the committee, and its provisions
in outline are as follows:
That all outstanding currency obliga-
tions, amounting to about $500, ,000,
900, shall be taken up and cancelled,
being replaced according to business
exigencies (under the direction of cur
rency- board commission, composed of
the president, secretary of the treasury
and controller of the currency, by 8
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 issued gradu
| ally to replace United States obliga-
tions as the latter are retired. These
notes are to be secured by deposit of
| Is per cent in gold in the treasury, by
! 10 per cent in gold in the bank vaults,
and by a first lien upon all the banks
assets, as we'll as by special provi-
sion giving the government the right to
assess all national banks, when needed,
to make good the notes of 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 if
this exceeds 100000 the surplus
may be covered into the treasury to pay
interest on United States bonds and
for general purposes This tax should
be % of 1 per cent, or l per cent per
| annum, as the comm ission shall elect.
Power should be given to banks, under
permission from the currency board, to
increase the note issue when there is
| demand caused by an unusual financial
emergency, such increase to be subject
| 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 rate which
would put pressure upon the banks to
take up the notes when the emergency
had passed.
Silver and subsidiary coins should be
redeemed in gold by the United States
government when demanded. These
amount to about 100000, 200. No
notes should be issued for less than s..
/ National banks should be constrained
| to exchange notes now out for new
issues by surrendering notes as they
receive them.
Customs demands and taxes of all
kinds due to the government should be
payable one-third in old and two
| thirds in bank notes. This is necessary
to supply the government with. the gold
required by it to pay interest upon
United States bonds, redeem silver.
and for other purposes.
The legal-tender quality of gold and
| silver should remain as now provided
by law, and they should be the only
/ legal tender, except to the extent of
two-thirds of customs duties and taxes
due the government, which should be
payable in bank note, as above stated.
Confer upon the currency board the
power to regulate the issue of bank
notes from time, in lieu of the govern
ment currency retired, and to author
ize new banks and branch banks to be
established, when and where, and with
such amounts of capital, as the board
may deem proper and expedient, 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 business expansion. As banking
capital may be increased by the crea-
tion OF new banks, the currency board
should have the power to adjust the
note issue, whether normal or extraor-
dinary, between the new and old
banks, no distinction being drawn be-
tween them. The 10 per cent gold
upon the note issue deposited in the
government treasury, and the Is per
cent kept in bank vaults, should be
counted as part of the % per cent re-
serve on deposit in national banks.
The system of clearinghouse certifi-
Gates adopted by the banks in the large
cities in times of panic should be legal
ized. They have proved to be most
salutary, and there can be no better
evidence of the needs of such a system
than the fact that it has been estab-
lished by voluntary consent in times of
panic.
london Nov The British steam