Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-11-08
alfREST|NG PROPOSITION
For Reform in the Banking and Cur
reney System,
Submitted to the Monetary Com
mission John @. Bullitt The
Full Details Of a Plan Which
(which Has Commanded Great
Attention and Study from Ex-
perts.


interesting propositions for reform OF
the bank and currency system of the
country, and among these is one from
John c. Bullitt, which, coming highly
endorsed as it does by financial au-
thorities. has commanded great atten-
ton and study. Mr.. Bullitt's plan
touches every branch of the problem
before the commission and its provis-
ions in outline are as follows:
That all of the outstanding curren>
cy obligations amounting to about
SS00,000,000, shall be taken up and
cancelled, being replaced according to
business eXigencies (under the direc-
ton of a currency board, composed OF
the President, Secretary of the Treas
ury,. and Comptroller of the Currency,
by three per cent. bonds.
There is to be but
ONE KIND OF CURRENCY,
namely, national bank notes, redeem
able in gold at the bank of issue and
a selected bank reserve, and these
notes are to be issued gradually to re-
place United States obligations as the
latter are retired. These notes are to
be secured by 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 a special provision giving
the government the right to assess all
national banks when needed to make
E Il Nfa JTlcr no MI %
notes of which would then be redeemed
by the government. A tax is to be
laid upon the banks to cover the eX-
penses Of the currency board, and the
balance held to secure redemption or
notes in gold, but if this exceeds S10,-
100000 the surplus may be covered
into the treasury to pay interest on
United States bonds and for general
purposes. This tax should be one-half
of one per cent, or one per cent. per
annum. as the commission shall elect.
Power should be given to banks I'M
der permission from the Currency
Board to
!. INCREASE THE NOTE ISSUE
when demand caused by unusual
financial emergencies, such increase 10
be Subject to tax Ito be determined
from <time to time by the Currency
BoardE- upon the notes while in cir
culationa the tax upon the notes 70
be at a rate which would put pres
sure upon 1.-The banks to take up the
notes when 1he emergency has passed.
SiT ar Subsidiary coins should
be redeemed In gold by the United
States Government when demanded.
These amount 10. about $500 100000,
No note shall be. ISSUED for less than
five dollars.
National banks should be constrain-
ed to exchange notes%now out for the
new issue by surrendering notes as
they receive them.
Customs Guties and taxes Of all
kinds due the government should be
payable one-third in gold, and two
thirds in bank notes. ThisSis neces-
sary to supply the government with
the gold required by it to pay, inter-
est upon its bonds, redeem silver and
for other purposes.
THE LEGAL TENDER
quality Of gold and silver should Re-
main 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 gov
eminent, 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 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 it proper and eXpedient,
with power also to increase the
amount of note issue by the banks re
quired for the normal conditions Of
business as the country shall grow in
population and in business expansion.
AS banking capital may be increased
by creation of new banks. the cur
rency board should have power to
ADJUST THE NOTE ISSUE,
whether normal or extraordinary, be-
tween the new and old banks-no dis
tinction being drawn between them.
The Is per cent gold upon the note
issue deposited in government treas
ury and the 10 per cent. kept in bank
vaults should be counted as part Of
the % per cent reserve on deposit in
national banks.
The system of clearing house certi-
ficates adopted by the banks in large
cities in times of panics 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 the voluntary consent
in times of panic.
Vice President Z. o. Leach, of the
National Union Bank of New York,
formerly director of the United States
mint, has also presented a paper TO
the commission, addressed not so
much to the merits of any particular
form of banking system as to needed
reforms of the present minting and
currency laws He favors branch
banks. but doubts the present advis-
ability of making banks assets
THE SOLE BASIS OF ISSUE.
although that would be the true log
zeal method. Nor does he believe it
necessary TO redeem all of the silver
coin and paper in gold, as the wants
of the people are fully adequate to
keeping in active circulation the $780,
geo .0G0 of this money now aficat, as
evidenced by the successful practice OF
an In the west. south and mid