Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-05
THE COMMISSIONS PLAN
Currency Reform Different From Secretary
Cages
Two Per Cent Bonds Proposed and
the Burden Of Redemption Placed
Upon the Banks.

While the monetary commission appoint
ed by the Indianapolis convention has not
yet fully formulated report. on which
will be based the petition TO Congress for
legislation. enough progress has been made
to indicate that their recommendations will
be different from Secretary Cages report
as submitted to the President 81 few days
ago. 1t is expected that the commission
will endeavor to popularize their plan by
including in it concessions by the ma
tional banks as a compensation to the
public for the advantages which the banks
would be expected to reap from the system
OF currency poposed. Their plan will con-
template the withdrawal from circulation
of demand obligations upon the govern
ment and the funding of obligations i'm
gold bonds.
But it will probably propose per cent
rate on the refunded Gcbt instead of 2l9,
as proposed by the Secretary of the Treas
ury. thus saving a big interest charge to
the government. and will propose to put
upon the banks the obligation 20 maintain
gold payments.
Maintaining Gold Payments.
1t is estimated that it costs The govern
ment S21,o00.O00 a year to maintain the
parity of the currency. and it is claimed
that by putting this obligation upon the
banks there will be a saving of that much
to the government, in addition to the saw
ing of interest on bones. Another propo-
sltfon being discussed, but may not be ap-
proved, Is to levy small taxa fraction Of
per cent-upon the banks as an tnsur-
ance fund TO guarantee depositors.
1t is urged that the saving to the govern
nent OF interest charges, of the expense of
maintaining The gold redemption and the
security proposed to be offered to the pub
lie against any loss through the banks
either on the bank currency or through de-
posts. Will be accepted by the public as a
compensation for privileges to be EXTENDED
to the banks and for turning over to them
the sole right to issue currency
The great difficulty in the way of secur-
ing even republican votes in Congress for
any measure of currency reform which fe-
places government demand obligations with
bank notes is the fear members of Con-
gress have of being charged in campaigns
with subservience to the interests of The
banks, and for that reason ii is argued .ha.
any action must be made Gefensible on the
ground that exactions are made of the
banks for benefit of the people,
The Commission Report.
1t is not regarded as likely that the re-
port of this commission will be transmitted
to Congress by the President or his Secre-
tary of the Treasury
If Secretary Gage submits to Congress
substantially the report which was ex-
hibited in the cabinet meeting and pub
lished recently, that and the recommenda-
ton and the report of the commission,
which will probably be submitted in the
form of petition by private citizens, will
probably come into conflict in the commit
tees of Congress. The expectation of those
familiar with legislative methods is that
the house committee on banking and cur
rency will not follow either the Secretary
of the Treasury nor the monetary commits
sion entirely In reporting a financial meas
ure, but that both suggestions will be
tested by the judgment of the members of
the committee and be availed of in con-
structing plan which will be practically
original with the committee. There are
sure to be two reports from the committee,
and it is not improbable that there will be
three or four, without much prospect of
any plan proposed going through Congress.
1t is realized that in the light of the re-
cent elections the silver element in Con-
gress will be particularly stubborn and
arrogant, and there cannot be sufficient
change in the Senate to secure financial
legislation such as is desired until after the
4th of March, 1899.