Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1898-01-06
1T PRESENTS ITS PLAN.
Main Points in the Report of the
Monetary Commission.
Presents What II Considers to BE De-
fects I'm Our Present Currency
System, and Suggests How 1t
May BE Reformed.

Washington, Jan. 3.-The following
is an abstract of the report of the none
tary commission appointed under au-
thority of the convention of business
men held in Indianapolis last January
which has just been made public:
1t retains practically unchanged the ex-
tsting metallic money. The existing gold
standard on which business has been done
since 1879 Is, of course, maintained, on the
ground that Industrial interests demand
certainty as to what the standard shall be-
For the steady employment of labor, FAC
tories and mines must be constantly OPP
Grated; and constant operation, in the judg-
ment OF business men, is impossible so long
as there Is uncertainty as to the standard
on which prices of goods and orders are
based. And to this end, it is urged that
the United States should remove all I'M
certainty as to the meaning Of "coin" In its
obligations, thereby saving the taxpayer
interest.
Place for Silver.
No attempt is made to remove the exist
ing silver dollars, nor to change their
legal-tender quality; on the contrary,
place is provided for them in the circulation
by forbidding the issue of any paper money
other than silver certificates in denomina-
lions below ten dollars. The silver cur
rency, which will be in the hands of the
people must be kept on parity with gold,
as is now provided by law, and this should
be done by requiring the treasury to give
gold for silver dollar on demand. Con-
Bequently, when It is known that a silver
dollar can be exchanged for gold 1t will
circulate freely Tin the form of certifi-
cates). and our metallic money. without be-
ing diminished, will be unified on certain
be sis And, all this silver currency will
be needed to meet the demands for large
change (when other paper below ten dol
lars is retired), 1t will not be presented for
redemption at the treasury, and 1t will
create no strain on the gold reserves. But
no more silver dollars should be coined.
Reserve Too Slender.
The commission contend that the ten diff
ferent kinds of money now in create an
anomalous and confusing situation. More
over, the whole fabric rests on too slen-
der a reserve of gold. 1t is urged that the
demand obligations of the government
may be, and have been, presented for gold
to the injury of the nations credit This
causes grave doubts as to the standard on
which the business operations of the coun-
try rest. Everything which, by experience,
creates uncertainty and hurts trade,
binders prosperity and should be removed.
Hence the fiscal affairs of the treasury re-
lating to the receipt and disbursement of
public revenues should be entirely sep
arated from the monetary functions deal
ing with the exchange and redemption of
the currency. By establishing a separate
division of issue and redemption in the
treasury, II Will De linpOSSlDiS 10 take away
funds set apart for the protection of our
monetary system and use them for current
expenditures.
FrauEht with Danger.
Above all, 1t is regarded as dangerous to
maintain the present practice of using gov
eminent demand obligations as money. Our
fathers never made anything full legal
tender money except gold and silver; but
in the stress of civil war. confusing the
fiscal and monetary functions of the state,
forms of debt due on demand were used as
money not as the result of elaboration but
of emergency conditions. They were is
sued exactly because there were no re-
sources IN the treasury; and so they de-
preciated. drove out gold, furnished
nuctuating standard, increased the nation
al debt enormously, caused a change in
prices whenever the credit of the paper
standard fluctuated, reduced the purchas-
ing power of wages, and by causing I'M
expected changes in the level of prices
gave rise to extraordinary speculation, in
creased the severity of commercial crises,
and placed the small producer at disad-
vantage with the large operator. For II
years QS62-1S79) the government paper was
q falsified promise. and our standard was
based on this lie. Trade and industry be-
came speculative. Men of large wealth can
take care Of themselves; but men of small
means should be protected from the evils
arising from such uncertainty Of the stand
ard.
If the demand obligations of the govern
ment are used as money, reserves must al
ways be kept on hand to redeem them.
They are not therefore loan without in
terest; and the expense of keeping up
these reserves has made the paper money
a very great burden to the taxpayer by
an increase of the public debt. These gold
reserves are necessary, unless the gov
eminent permits its notes to go to pro-
test. The mere credit of the United States
behind its notes is too vague thing, its
power to tax is too remote. to provide cash
oya ha, for gy1-f NJ CO for 60
is concerned. this debt could have been
more easily borne by changing it into
low interest-bearing bonds.
should BE Withdrawn.
For these and other reasons the COM
mission strongly urge the government to
withdraw its demand obligations now used
as money, decline to provide gold for ex-
porters, and put the burden and expense of
maintaining a redeemable paper circula-
ton upon the banks. In order to meet the
demand obligations, the present reserves
of gold in the treasury furnish beginning
to be set aside in the division of Issue and
redemption: and to meet possible contin-
gencies the secretary of the treasury is
authorized to sell bonds whenever the re-
serves need replenishment. In this way.
or from surplus revenue, the demand obli-
cations Chat is, United States notes and
treasury notes of 1890 can be gradually re-
moved, and the cost to the country can be
reduced while this process will also give
the inestimable advantage of ceasing to
use demand debts as money, of simplify
ing our currency, and of adding to conf
ience in the certainty of our standard.
By the plan of the commission, government
paper is withdrawn in the first five years
only as fast as the banking currency ex-
pands so that contraction cannot possibly
take place; II United States notes are can
celed their place will be taken by the gold
paid out for them, or by the expansion OF
bank notes (under the new system pro-
posed; and in the following five years
all the remaining United States notes are
to be retired.
Bank Note Is Lauded.
The demand obligations of the United
States were put forth solely because there
were no funds in the treasury to redeem
them The notes were only evidence that
property had been received and used VI
for services or supplies or public buildings
Ono longer available assets). The govern
ment by the nature of the operation did
not retain, as the notes went out, any
property Immediately convertible into coin
with which to redeem It's demand issues
They were not a money based on property;
they were only a debt. On the other hand
e bank note Is never issued Uraud, OF
course excluded) except for a consideration
in negotiable property of equal or greater
value The bank note comes forth as the
sequel of a business transaction, and Is
based on the active property OF the coun-
try which is passing between producers
and consumers. This property is always
negotiable and always equal to the duty OF
meeting the note liability. Bank notes are
as sound as the business transactions OF
the country. The currency of the country
moreover, ST. ould increase as the tranSac-
tions OF the country increase; hence the
rigid unchangtng issues of the government
make them an inelastic part of the cir
culation, while by the very process of theil
issue bank notes alone can be automatically
adjusted to the changing transactions o.
the business community.
The Commissioners' Plan.