Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-11-18
CURRENCY REFORM.

the eminent lawyer, In response 10
request Of the Monetary Commission
prepared plan OF currency reform, a
summary OF which is as follows:
The scheme as proposed provides:
/. Tint all the present outstanding
currency obligations OF the government,
amounting to about $500, 600, 900 shall
be taken up and cancelled.
2. That there shall be but one kind
Of note circulation to be issued
ny the National Banks. These notes
should be payable 10 gold when de.
manled at the counter of the bunk oil
issue, or at such reserve bank as may
be selected by the bank OF issue, with
currency, for the purpose Of such 70.
demption.
3. Tho issue OF the now bank notes
to be made from time to time as the
currency obligations Of the government
now outstanding arc retired. so as to
avoid producing sither contraction, on
the one hand, or expansion on the
other, OF the amount OF currency
actually in circulation.
4. The normal requirements Of bust
ness are assumed to be 81, 600, 600. 600.
The hank capital is assumed to be
5000, 600. 600 lin point Of TACT it is
about SCAT, 000i 000), and each bank
should therefore issue one and two
thirds of notes for ono of it's capital.
B. These notes shIud be secured by
deposit in the United States Treasury
OF ID per cent of note issue in gold, by
10 per cent reserve IN gold in vaults OF
banks, ty first lien upon all assets OF
bank issuing them, ny right OF United
States government to assess all banks
when needed to make good any notes OF
defaultlng banks so much as may be
required for TINT purpose, and the
government should agreo to redeem
these notes in gold after default by
the bank issuing them.
6. A tax should lie paid by tho
banks upon their nots issue to be ap
piled TO payment OF expenses OF cur.
rency board, and balance, il any. held
to secure redemption of NOTES in gold.
But when this fund shall accumulate
to $40, 700, 600 the accruing surplus may
bu covered into the United States
Treasury for paying interest on it's
| bonds and general purposes
1t may be we'll to vest in the cur
rency board the power from time to
time to determine what amount should
be thus hold as q reserve of the funds
accruing from this tag, and to order
that tho balance as it ia paid in from
year to year should be covered into the
| Treasury.
The rate OF ths above tax should be
one. half nj one per cent or one per cent
per annum upon the note issue, as
your commission may determine to be
expedient.
Z. The proposed plan would make the
notes absolutely equal to goli in value.
1t would also protect the government
and the associate banks 10 their
guarantee OF tho redemption of the
notes In gold.
8. A currency board should BIZ pro.
vided, which would have supervision
and control OF all currency matters,
with power to make necessary rulos
and regulations and such orders as
from time to timo should DO required.
This board should consist OF the presi'
dent Tor such officer of the adminierra-
tion as he might select), Secretary OF
the Treasury, and comptroller OF the
currency of the United States, with
two experienced mon OF affairs, to lie
Amounted by the President. Their
powers should be ample to enable them
to deal with financial emergencies az
they arise, ia.
8. Power should be given TO banks,
under permission from the currency
board, to increase tbs nnte issua when
in demand caused by unusual financial
emergencies. such increase to he sub.
ject to tax to be determined from
time to time by the currency board
uuoD the notea while 10 circulation
the tax upon the notes to be at rate
which would put a pressure upon tht
banks to take up the notes when thu
emergency has passed.
10. Silver and subsidiary coins should
be- redeemed in gold by the United
States government when demanded.
These amount tn about 500. 600, 900.
II. No notes should be issued fol
less than five dollars.
IL. The government should take VI
und cancel all IT'S currency obligations
amounting to about $500, 200, 600.
To furnish funds for this purI ose
power should be conferred upon thu
currency board TO direct and order th'
sale and issue OF governmnt bonds il
such amounts, at such times, and a
such rates of interest. not exceeding
three per cent, us the board nigh
deem expedient. The proceeds Of sucl
sales to be applied TO the taking VI
and cancellation of the outstanding
currency obligations of tho govern
ment, and such honda should he H0ll
and paid for in such currency obliga
tions or in gold. After three Tor fivs
years the currency obligations nov
outstanding should cease to he lega
tender and only receivable fer bonds o
rodeemable in gold by the Unite'
States.
IL. National banks should be con
: strained to exchange notes now out 70
new issue by surrendering notea a
they receive them.
; IA. Customs duties and taxes OF al
: kinds due tue government should II
payable one third in gold and two
! thirds in bank notes. This is neces
: sary to supply the government with th
: gold required by it TO pay interes
upun its bonds, redeem silver, and 70
} both purposes.
, Is. Tho legal tender quality of gol
Y and silver should remain us now pro
vided by law. and they shnulu be th
only legal tender except to the exten
Of two. thirds of customs duties ant
|. taxes due the government, wbic
3 should 90 payable in bank notes, a
t above stated.
1G. Confer upon currency boar
power to regulate the issue of han
: notes from time to time in liuu of III
2 government currency retired, ana t
!. authorize nav banks and branch banl;
to he established when and where an
with such amounts of capital us th
board may deem it proper and eS
pedient, with power also to increas
: tho amount OF note issue by the bank