Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1897-11-11
FINANCIAL REFORM.
The Monetary q Commission Receiv-
ing Many Propositions.
JOHN c. BULLl71'S PLAN OUTLINED.
He Would Cancel All Outstanding Currency
Obligations and Have Only Ono Kind
Of Currency, Namely, National
Bank NOteS-Leechs Views.

WASHINGTON, Nov. S.-The monetary
commission is receiving, in answer to
its invitation, many interesting propo-
sitions for reform OF the banking and
currency systems Of the country, and
among these Is enc from John G. Bull
lit, which, coming highly Endorsed as
1t does by financial authorities, has
commanded great attention and study
Mr.. Bullitt's plan touches every branch
Of the problem before the commission,
and its provisions, in outline, are as
follows:
That oil Of the outstanding currency obliga-
lions, amounting to about iSU.WO,OO snail DC
taken up and Cancelled, being replaced, Accord
inQ to business exigencies (under the direction
Of currency board composed OF the president,
secretary Of the treasury and comptroller OF
the currency, by three per cent bonds There
IA to be but one kind Of currency, namely, ma
tional bank notes redeemable In gold OF the
bank Of issue and selected bank OF reserve
and these notes are to BE- issued gradually 10
replace United States obligations o. the lat
ter are retired. These notes are to be Sc
cured by deposit Of IS per cent OF gold
In the treasury, by 10 per cent OF
gold In the banks vaults and by
first lien upon oil Of the banks
assets, as well as by special provision giving
the government the right to assess all national
banks when needed to make good notes OF de-
fuulting bank the notes Of which would then
be redeemed by the government 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 II this
exceeds eYO, 900, 900, the surplus may be covered
into the treasury to pay interest on United
States bonds and for general purposes
Power should be given TO banks. under per-
mission from the currency board, to Increase
the note issue when demand Is caused by I'M
usual financial emergency. such Increase 70 Dc
subject to a tux TO be determined from time TO
time by the currency board) upon the notes
while In circulati0n the tax upon the notes to
be at o rate which would put a pressure upon
the banks TO take up the notes when the emer-
gency has passed.
Silver and subsidiary coins should be re-
deemed in gold by the United States govern
ment when demanded. These amount to about
sln,uV'Oo1 NO no'cS Siouio W '''u'' ~ FUSS
' Customs duties and taxes Of oil kinds due the
government should be payable one-third in
gold and two-thlrds IN bank notes rms .I Is
@ W. su Nv i to INV nteres its
bonds u redeem silver and for other purposes
Confer upon the currency board power to
regulate the issue Of bank notes from time !"
time In iieu OF 'hc soverhnou. .u' s ~
sn ro, " nho w and who're md With such amounts
Of capital as the board may deem proper and
expedient, with power also to increase the
amount o. note issue up ,ne ''u tea
c 90, p shall crow in population ind in bust
ness expansion.
The 70 per cent gold upon the note Issue az e.
pos.eu N one sotu na,s should hs c co~nted
p MART ~ the d mar cent reserve on deposit in
national banks. The,system of clearing house
certificates adopted by the banks In the large
S''es III ',,''s y, p'n'' ,"o1,' ~ '0N"
vice rfeslaeht NJ " Leec"' ., VIZ
Nauonal Union oahh VI Ne" ao."'
formerly olreclor ol VIC on''eo ''".es
mint, has presented a paper 10 'hc
commission addressed hot SO nucn W
the merits OF any particular form OF
banking system as TO heeuea REFORMS
OF the present mlntihg ana currency
laws lie favors orahcn pahks' ou'
doubts the present advlsaDlilty OF max
inp the banks assets the sole basis OF
issue although that would be the true
logical method. Nor does he believe
II necessary to redeem all Of the
silver coin and paper in gold as the
1t,.nts Il ,he naonIe are fully adequat,
90 Loon,nr IN act;ve circulation tn,
saso ana ooo of this money now aAoat
..,aauaoa y, tbo snccessfnl nrac
49, +, T,anoo Mr. J,eech fnyors tn,
ronoal of The net of Nav 81, 1878, re