New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-08
CJTRRENCY REFORM PLANS.
Holm g BULLITTs SUGGESTION TO THE
MONETARY COMMISSION.

ALSO SUBMITS HIS VIEWS.
o.o.bi,o,or Nav The Monetary Commission
&c receiving in answer TO It's invitation many IN
toresting propositions for reform of the banking
and currency systems Of the country AMONG
these is one from John c. Bullitt. which, coming
highly indorsed as IL docs, by financial authcflles
has commanded great attention ana study Mr.
Buitt's plan touches every branch OF the ProoIem
before the Commission, ana us pioNiS'oII9 III O"'
line are follows:
That all OF tho outstanding currency obligations.
amounting 10 about $Spl.e0vD, shall be taken UP
and cancelled being replaced according TO business
Cxirencics 0indcr the direction of Currency
Beard, composed Il the President the secretary OF
the raosTy and the bert is ,p be- only one kind
OF currency. namely. National bank notes redeem
bank Of reserve. and these notes are to be issued
gradually replace cbligations as tie iattsr he
Of Is rcr cent OF gold in the Treasury, by - per
cent gold in the bank vaults and ny nrst ien On
vision giving tho Government the right to assess
ali National banks when needed TO make good
w Womb then be redeemed by the Government
tax is to he laid the banks to cover the expenses
secure redemption Of notes in gold but II TINS oX-
cceds 100000. The surplus may be covered into
bcnds and for general purposes. This tax should
he one-half Of Per cent or ! per cent per ai'hu'H
Power should be given 20 the banks under PEI
mission from the Currency Board TO increase tilge
financial emergencies. such increase 10 he subject
TO a tax Go be determined from time 10 time by
ton; the tax on TIE notes TO be at a rate "hlch
would put a pressure on the banks to take up inc
silver and subsidiary coins should be redeemed in
gold by the United States Governm.e zen, o when %
note should be issued for less than 81
National banks should be to rXEha4ss
notes as they receive them
Customs dues and taxes OF all kinds due TO the
and two-thrds in bank notes, This Is necessary
to sTpP hs 0 0d Tf Sans redeem me silver nd
The egal-tender quality Of gold and silver should
be the only legal tender except to the extent ot
two-thirds Of customs dues and taxes que 10 On, IN
Government. which should he paid In BANK notes.
as above stated
Confer on the Currency Board power to regulate
the issue of bank notes from time to time, in lieu
Of the Government currency retired. ana 10 az
thorze new banks and branch banks 10 De es1ao
capital the Board may deem proper ana eA-
pedient. with power also to ncreas Sc me aoun
conditions OF business the country SHAH grow IN
population and business expansion.
As banking capital may be Increased by cr'R'lon
oow~r TO adiHs, he note issiie whether normal or
extraordinary between the new and old banks no
distinction being made between then
deposited in the Treasury and the - per cent kept
In bank vaults should be counted as part OF me
The system of clearing house certificates adopted
bv the banks in large cities in times OF panic should
he inssIiznS Thev have proved 10 be most sau-
~ Ind there can he no better evidence Of the
need OF such a system than the Act that u mas
been established by voluntary consent IN tunes Oh
panic,
Vlcc-President Y. O. Leech. OF the National Union
Bank OF New-York formerly Director q the United
States Mint has also presented paper 10 N"
Commission addressed not so much to the merits
of any particular form Of banking system &c Ia
needed reforms of the present nntinG ana cur
hron la doubts
the present advisabllty Of making tho banks as
sets the sole basis Of issue. although tina; would
be the true logical method. Nor does he believe
II necessary to redeem all OF the silver coin and
paper in gold nc the wants OF the people nre
fully adequate TO keeping n active circulation me
SiS0O1ocO OF this money now anoa;. a. evidenced
by the successful practice In France In the West.
South and Middle sections Of the country wherc
gold is not called for on export account this form
Of money suffices for all business needs. ana there
is practically no difficulty in securing IT'S reicmp-
ton in gold when wanted through deposits IN
hank Moreover the redemption by the Govern
ment OF silver would require the locking up OF
large gold reserve in the Treasury and contract
the circulation.
Mr. Leech favor3 the repeal % the act 81 May
g. 1875 requiring the reissue ~ United states notes
coming into the Treasury, and would l"av" u oi-
tiona with the Treasury To reissue these notes ohy
I'm case OF need This alone would insure the stahy
of the gold standard. He regards a. prospective
and not as imminent danger from tnc m4IntehaHee
Of tho present legal paper mGmGy crGuSCh 1Se
coining OF silver bullion both into dollars ana SUD-
sdiary coirs. .,,-,.- o-,-,,.,,od -. tho
accumulation Of country bank deposits IN New
York from whence they are Withdrawn Iapidiy
isb reserve cities. and require National banks
throughout the country to keep about 10 per cent
cash in reserve in their own Vaui,s, lhsuilhB
uniform distribution OF money.
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