The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-02-26
A New Currency Plan.

An interesting currency bill was in
troduced in congress the other day by
Representative Leisenring, by request.
1t authorizes the Treasury department
to prepare new issue of paper money,
to be denominated the interest-bear-
ing bond certificate of deposit" and to
be a full legal tender for all public
and private debts. These certificates
may be loaned to states. cities or coun-
ties at the lowest rate of interest that
the government can borrow gold, or 8
per cent. per annum for the first five
years. After the census returns of each
decade 1t shall be the duty of the
Treasury department to regulate the
rate of interest to be two-thirds of the
annual rate of growth in the wealth
of the country, deducting loans from
foreigners in the previous decade. No
state, county or city will be allowed
to borrow over 20 per cent. of their
taxable valuation of wealth. If the
debt of any state, county or city shall
be above 20 per cent. of this taxable
wealth the loan from the government
must be secured by first mortgage
bonds. The Treasury department must
supply the borrowers with silver dollars
and fractional silver money to meet all
demands under this act, and to supply
10 per cent. of the amount in gold coin
when demanded, provided the party
demanding gold agrees to return the
same weight Of gold coin when redeem
ing the bonds.
This measure is obviously a hopeless
tumble of undigested ideas, and is not
likely to receive much attention. But
its central idea of an interest-bearing
bond convertible into notes of full legal
tender is one that has engaged the at
tention of financiers for some time and
seems destined to reappear at no late
day in the deliberations of congress
In the forthcoming March issue of the
Cosmopolitan Magazine John Brisber
Walker will devote several pages to al
impressive discussion of this subject
and set forth plan for a scientifically
based, automatically regulated system
of money which merits attentive con,
sideration. The plan of Mr. Walker
has at least the virtue of simplicity. 1
involves the retirement of present lega
tenders, government bonds and nation
al bank notes, and the substitution o.
a new fifty-year government gold bono
bearing two per cent. interest AS
recompense to national banks for tht
cancellation of their circulation the Law
shall permit these new bonds to b,
held by them in place of the % pc
The new bond, furthermore, may b
converted, at the will of the holder a
the nearest sub-treasury or importan
postoftce, into government notes, Whicl
are made full legal tender for all dues
public and private
The claim made by Mr.. Walker 70
this plan is that it will supply an au
tomato currency of unchallenge
soundness with none of the disadvan
tages of the present system. Busines
men will invest in the bonds for tn
reason that it Will give them interes
In good times and enable them to ge
ready money promptly when financia
scares arise. The pledge of gold re
demption will give the bond stability
and the fact that the bond stands be
hind the local tender government not
win sustain the latter. Mr.. Wake
adds that he has discussed this propo
sitlon In detail with men representa-