The times. [volume] (Richmond, Va.) 1890-1903, 1898-01-04
THE MONETARY COMMISSIONERS
REPORT.

The plan OF reforming our currency
svs;em incubated by the Monetary Com
mission that sat so mucn OF the. fan at
Washington city has been made public
II is accompanied by a report of which
we have seen only a meagre outline but
that outline gives US the impression that
il is a very able discussion OF the i'm
portance of this government s,onding by
and adhering to the single gold standard
Of values and the report will be valu2-
BE contribution - the current financial
discussion i'm thas aspect. Having said
this much I'm praise % IT, we have said
all that Is 20 be said. So far as ID pro-
poses "A reform OF our paper currency.
which IS tho essential thing now. The gold
standards battle being already won, 1t
had just as well not have been prepared
~ will not meet with the appreciation OF
any considerable part OF the country and.
II Il did II would utterly fail 20 give 10
that relief which so large part of our
population. the farmers, are demanding
l. provides for retiring the greenbacks
and Treasury notes. which is OF course
right. but, what does 81 propose as a
currency system? In short tho PROPOSE
ton is that notes shall be issued by ma
Nonal banks only These may be ostab-
,lshed with a capital as small as $3.50
IN cities OF 900 inhabitants. and they may
have branches with the consent OF the
Comptroller OF the Currency and the Sc
rretary of the Treasury. Banks may issue
notes 20 the fun amount Of thcir unm-
paired capital but upon the following
terms and conditions: The first Issue, 10
m amount equal to o per cent. Of their
\ ,apital IS 20 be guaranteed by deposit
with the Treasury of an equal amount OF
United States bonds; while all issues
beyond that are 20 be protected solely by
a first lien on the entire assets o! the
hank and the liability Of the stockholders
which remains as at present. An issue in
excesss of GO per cent. of the capital and
not In excess of 80 per cent. of IL VIII he
required to pay tax of per cent per
annum, while issues in excess of 81 per
cent. of capital must pay tax OF per
cent. per annum. Tho effect Of these
provisions would be to make all note
ISSUES over 60 per cent. OF banks capital
nav heavy tax so that banks would
make no issue over co per cent except
under great pressure, and would retire it
as soon as the pressure ceased. so that
our paper money would be really W per
cent OF the capital OF national banks.
Eut a bank IS required 10 deposit per
cent. of its outstanding circulation in gold
as a guarantee fund and also an equal
sum 10 be held by the Treasury for the
n,rnoso of current redemption OF notes
THESE deposits would 20 the extent OF
their amounts. reduce the active circ6ia-
,,on ~ money required 20 meet the pro-
posed withdrawal Of leeal tender notes
and make the real contribution Of the
hanks 10 the currency of the country d
per cent. OF the capital of the national
hanks. With all the government notes
Withdrawn and tho capital of the national
banks remaining what 81 is, the country
would have 100000 less paper money
than A now has and that bare statement
is of course enough so send the commits
SONS recommendations 10 an eternal
limbo.
The &C mmisslon almost persuaded Itself
10 recommend a real banking system. In
authorizing notes between p and 50 per
cent. Of a banks capital without any Sc
c,rity but the banks assets and with no
liability TO taxation. 1t showed that It I'M
derstood thar true banking principle for
which The Times has so long and 80
earnestly contended. II II had east pru-
dentla. and demagoglc considerations 70
the wind and had declared It would not
have bonds al the Back OF the % per cent.
ami that Il would not impose taxes on is
sues over co per cent. II would have Gu,
tae sordian knot and. I'm a short time.
would have drawn the country mp TO a
realization OF those true principles OF
banking which leave every bank TO issue
inst what and so many notes as directors
chose to put on, with no taxes or other
burdens of any sort upon them.
But attempting TO carry water upon