The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1897-11-18
REFORM OF CURRENCY

REF0RM OF CURRENCY
Bullitt's Plan Laid Before the
Monetary Commission.
ITS PROVISIONS IN OUTLINE
National Bank Notes to Take the Place
of All Other Kinds Of Currency
Other National News.
Washington, Nov. 9.-The monetary
commission is receiving. in answer to
its invitation, many interesting propo-
sitions for reform in the banking and
currency systems of the country, and
among these Is one from John q. Bull
lit, Of Philadelphia, which, coming
highly Endorsed as it does by financial
authorities, has commanded great at
tention and study. Mr.. Bullitt's plan
touches every branch Of the problem be-
fore the committee, and it's provisions
in outline are az follows:
That all outstanding currency obliga-
tions, amounting to shout $500, 000,-
900, shall be taken up and cancelled,
being replaced according to business
exigencies (under the direction of cur
rency- board commission, composed of
the president, secretary of the treasury
and controller of the currency, by 3
per cent 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 issued gradu-
ally to replace United States obliga-
tions as the latter are retired. These
notes are to be secured by deposit of
Is per cent in gold in the treasury, by
Is per cent in gold in the bank vaults,
and by first lien upon all the banks
assets, as we'll as by special provi-
sion giving the government the right to
assess all national banks, when needed,
to make good the notes Of defaulting
bank, the notes of which would then
be redeemed by the government. A
tax is to be 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 $40, 900, the surplus
may be covered into the treasury to pay
interest on United States bonds and
for general purposes This tax should
be a of l per cent, or per cent per
annum, as the commission shall elect.
Power should be given to banks, under
permission from the currency board, to
increase the note issue when there is
demand caused by an unusual financial
emergency, such increase to be subject
to tax Ito be determined from time to
time by the currency board) upon the
notes while in circulation, the tax
upon the notes to be at q rate which
would put pressure upon the banks to
take up the notes when the emergency
had passed.
Silver and subsidiary coins should be
redeemed in gold by the United States
government when demanded. These
amount to about 500, 900, 900. No
notes should be issued for less than $5.
National banks should be constrained
to exchange notes now out for new
| issues by surrendering notes as they
receive them.
Customs demands and taxes of all
kinds due to the government should be
PAYABLE one-third in old and two
thirds in bank notes. This is necessary
to supply the government with the gold
required by it to pay interest upon
United States bonds, redeem silver.
and for other purposes.
The legal-tender quality of gold and
silver should remain az now provided
by law, and they should be the only
legal tender, except to the extent of
two-thirds Of customs duties and taxes
due the government, which should be
payable in bank note, as above stated.
Confer upon the currency board the
power to regulate tho issue OF bank
notes from time, in lieu Of the govern
ment currency retired, and to author
| ize new banks and branch banks to be
established, when and where, and with
such amounts Of capital, as the board
! may deem proper and expedient, with
power also to increase the amount OF
note issue by the banks required for
the normal conditions OF business as
the country shall grow in population
and business expansion. As banking
capital may be increased by the crea-
ton of new banks, the currency board
should have the power to adjust the
note issue, whether normal or extraor-
binary, betweeen the new and old
banks, no distinction being drawn be-
tween them. The Is per cent gold
upon the note issue deposited in the
government treasury, and the 10 per
cent kept in bank vaults, should be
counted as part of the % per cent re-
serve on deposit in national banks
The system of clearinghouse certif-
Gates adopted by the banks in the largo
cities in times of panic should be legal
| lied. They have proved to be most
salutary. and there can be no better
evidence of the needs of such system
than the fact that it has been estaD-
| liehed by voluntary consent in times OF
panic.
London, Nov. o.-The British steam
or Harvood has arrived at Gibraltar,
with her machinery out of order. Sne
was last reported at Savona, October
as. A dispatch from Fluahing says
that the British steamer St. CuthDert,
Captain Fitzgerald, from New York
for Antwerp, is ashore at Parademark'
| Wislong.
Two Burned 70 Death