The daily morning journal and courier., 1897-11-08
PLAN OF JOHN c. BULLLTT
DEALS WITH THE PROBEEMS BE- FORE MONETARY COMMISSION.

Is Highly K dorsed and Provides for
 Cancellation of the $sOO,OOO,O0O Out
 standing Currency yObligations-onlyo One
 Kind of Currency and That National
 Bank Notes Redeemable in Gold.
 Washington, Nov. 1.-The monetary commission is receiving in answer to it's invitation many interesting proposi- tioCs for reform of the banking and currency system of the country, and among them is one from John c. Bull lit, which coming highly endorsed as it does by financial authorities, has commanded great attention and study. MT. Bullitt's plan touches every branch of the problem before the com- mission and it's provisions in outline are as follows:
 That all of the outstanding curren- cy obligations amounting to about $S0O,- 900, ,000, shall be taken up and cancelled, being replaced according to business exigencies (under the direction of a currency board composed of the presi-
  comptroller of the currency) by per cen4. bonds. There is to be but one kind of currency, namely, National bank notes redeemable in gold at the bank of issue and a selected bank of reserve and these notes are to be is sued gradually to replace obligations as the latter are retired. These notes are to be secured by a deposit of 15 per cent. of gold in the treasury by b per cent. gold in the bank vaults and
 by a first lien upon all of the banks assets as we'll as by special provision giving them the right to assess all na- tional banks when needed to make good notes of defaulting bank, the notes of which would then be redeemed by the government A tax is to he 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 $10,000,000 the
 surplus may be covered into the treas
 ury to pay interest on United States
 bonds and for general purposes. This tax should be one-half of 1 per cent.
 or 1 per cent per annum as the com
 missionmay select.
 Power should be given to the banks ullupI llOlil liit tlCiSJ board to increase the note issue when
 demand caused by the unusual finan- | cal emergencies, such increase to be
 subject to a tax, (to be determined from time to time by the currency board) upon the notes while in circula | ton; the tax upon the note to be at a | rate which would put pressure upon | the banks to take up the notes when the emergency has passed.
 "Silver and subsidiary coins should | be redeemed in gold by the United i States government when demanded. ! This amount to be about $100, 0,000. "No note should be issued for less than five dollars.
 National banks should be constrain- | ed to exchange notes now out for new | issue by surrendering notes as they re- | ceive them.
 | Custom dues and taxes of all kinds l due the government should be payable 1 one-third in gold and two-thirds in | bank notes. This is necessary to SUD- | ply the government with the gold re- | quired by it to pay interest upon it's
 bonds, redeem silver and for other pur- 1 poses. The legal tender quality of gold and silver should remain as now pro- l Nlueu Dy ldW dHu they SllDulu De tue only legal tender except to the extent
 of two-thirds of customs dues and taxes due the government which should i be payable in bank notes, as above | tated.
 i Confer upon currency board power | to regulate the issue of bank notes | from time to time in lieu of the govern ment currency retired tnd to authorize
 new banks and branch banks to be | established when and where and with l such amounts of capital as the board
 may deem it proper and expedient, with | power also to increase the amount of l note issue by the banks required 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 currency 1 board should have power to adjust the note issue, whether normal or extraor- l dinary, between new and old banks, no | distinction being drawn between them. | The IS per cent. gold upon the note is- sue deposited in government treasury
 and the 15 per cent. kept in bank | vaults should be counted as part of | 25 per cent. reserve on deposit in na- l tiOnal banks. The system of clearing | house certificates adopted by the hank | should in large cities in times of panic 1 be increaSed.''