The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-11-08
GOLD STANDARD
CURRENCY REFORM
An Issue Of Bonds to Retire the
GreenbackS.
Money Making Power to Be Placed
In the Hands of the National
Banks-John C. Bullitt's Plan
Meets With Favor Simply the
Cleveland Plan Warmed Over
Silver to Be Redeemed In Gold.


commission is receiving in answer to
its invitation many interesting propo-
sitions for reform of the banking and
currency systems of the country. and
among these is one from John c. Bull
lit, which, coming highly endorsed as
it does by financial authorities. has
commanded great attention and study.
Mr.. Bullitts plan touches every branch
of the problem before the commission.
and its provisions, in outline, are as
follows:
That all of the outstanding currency
obligations, amounting to about $780,
1000, shall be taken up and cancelled,
being replaced according to business
exigencies (under the direction of a
currency board committee composed of
the president, secretary of the treasury
and comptroller of the currency, by
8 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 Of 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 a deposit Of 10 per cent
of gold in the treasury, by Is per cent
gold in the bank vaults and by hrSt
lien upon all of the banks assets, as
we'll as by a special provision giving
the government the right to assess all
national banks when needed to make
good notes of defaulting bank, the
notes of which would then be redeemed
by the government tax is to be
laid upon the banks to cover the ex-
penses of the currency board. and the
balance held to secure redemption OF
notes in gold, but if this exceeds S1O,-
600, 900, 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 l per
cent, or 1 per cent per annum. as the
commission shall elect.
POWER GIVEN TO BANKS
Power should be given to banks, un-
der permission from the currency
board. to increase the note issue when
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 a rate which
would put pressure upon the banks to
take up the notes when the emergency
has passed.
silver ana SUBSIDIARY COluS SlOulu De
redeemed in gold by the United States
government When demanded. These
amount to about $780, 900. No notes
should be issued for less than So.
! National banks should be constrained
to exchange notes now out for new is
sue by surrendering notes as they re-
ce:ve them.
DUTIES AND TAXES.
Customs duties and taxes of all kinds
due to the government should be pay
able one-third in gold 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 notes as above stated.
Confer upon 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
/
! power also to increase the amount of
notes issued by the banks required for
the normal conditions of business as
the country shall grow in population
and in business expansion. AS bank
ing capital may be increased by
CREATION OF NEW BANKS, s
the currency board should have power
to adjust the note issue, whether
normal or extraordinary, between the
new and old banks-no distinction be-
ing drawn between them. The Is pei
cent gold upon the note issue deposited
in the government. treasury and the Il
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 certifi-
Gates adopted by the banks in the large
cities in times of panic should be legal
lied. They have proved to be mos
salutary and there can be no better
evidence of the needs of such a sy1ee en-
than the fact that it has been estab
lished by voluntary consent in times o
panic.