The herald., 1897-06-21
MONDAY, JUNE II, 1907.
THE MONEY QUESTION NEXT

1t Is reported that as soon as
the tariff question is out of the
way the president may send a mes
sage to congress recommending the
passage of an act authorizing him
to appoint a non-partisan commission
to prepare a plan for the revision of our
money question. He will not do that
however. unless he is assured that it will
not precipitate lengthy debate in the
senate and prolong the session through
the summer. Opinions on the money
question are more decided than on the
tariff, and the probabilities are that the
proposition would be debated at no in
considerable length, and finally defeated
But were it accepted, it would be next to
impossible to secure a non-partisan COM
mission, for the reason that the opinions
Of men capable of dealing with the sub
ject intelligently are pronounced, one
way or the other. 1t is doubtful whether
the president will take the hazard Of
making the recommendation under the
circumstances. 1t is more reasonable to
suppose that he will refrain from pre-
senting the money question until he
makes his annual communication to con-
gress.
It is stated that the secretary Of the
treasury is considering the subject,
with q view of presenting to congress
q plan of his own when the opportune
time arrives. After Mr.. Gage was Sc
lected for the treasury portfolio he hast
ened to give expression to his financial
views, and hence it may be presumed
that his plan will substantially embody
what he then uttered. Within the last
few days some features of his plan, as
already fixed upon, have been indicated.
He proposes to retire the greenbacks and
fill the space thus made by an enlarged
issue Of national bank notes. Retire
ment of greenbacks may be accom-
plished either by funding and the issu
ance of interest-bearing bonds, or by
cancellation when taken in by the gov
ernment as rapidly as the surplus reve
nue. will warrant. One of the reasons for
the enactment of law that will insure
q large revenue is that retirement of
the greenbacks may be achieved with
out resort to issuing bonds, as such
method would be obnoxious to the coun-
try and would impair the pretenses of the
Republican party. The national banks
are to be induced to increase their cir
culation through the granting of better
terms than they now enjoy.
This proposition to forbid the issue of
notes by the banks of less denomination
than ten dollars is a proper one, and it
would be still wiser were it applied to
notes of all classes, for that would offer
q wide field for the circula ton of silver
coins. Mr.. Lacy, eX-controller of the
currency, says there are three or four
hundred million dollars in gold coin and
notes under the denomination of ten
dollars now in circula ton. Recoinage
of the small gold coins and retirement of
the small notes would therefore make
an opening for all, or nearly all, the sill
yer coins and bullion now in storage in
the vaults of the treasury buildings and
relieve the department of a bother Of
which the several secretaries have made
complaint.
Forcing a large volume of silver into
circulation would be a material relief
from the troublesome obligations to re-
deem paper money with gold coins. If
the government preferred, the silver
now in storage could be repre-
sented by certificates, and the open
ing supplied by the coinage of the
silver in the hands of the people
With the limited quantity of gold in
the country and in the world, liberal
use of silver in domestic transactions is
a necessity. Mr.. Lacy says: "In order
to do this we must use silver and silve,
certificates as domestic money. That is
the use to which silver is perfectly
adapted, and 1t is important that this
sphere of activity be reserved therefor .
And further -on he remarks: "If these