The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-30

ard shall be insured. Il Is hardly to be
doubted that much would be gained by
its explicit definition i'm terms of gold.
Still more important would be the CT
acting of such legislation as shall IN
sure that the task OF maintaining the
standard. or. in other words, or MAIN
tanning the convertibility into gold OF
other forms of currency. shal be eff
GENTLY performed. At this point your
committee find themselves in accord
with the commonly received opinion
that under normal conditions the task
in question can most advantageously
be devolved upon some institution ar
Institutions of a banking nature. we
are also agreed. though perhaps less
positively, that even under the condi-
tons which must prevail in the United
States, this same solution of the prob
lem is. on the whole. best. III, however.
this plan shall prove impracticable-it
the task of maintaining the standard
of value IL still to rest upon the treas-N
ury-everything calculated to make that
task an easier one should be done, and
and the department should be specially
organized with reference to the duty
thus devolving upon IL. and provided
with such additional powers as are nee
essary to insure it's fitness for the work
I'm hand. Among the various
which would tend to the accomplish
ment OF these objects, your committed
believe n most important to be some
modification of the existing system
whereby the duties OF the treasury as
respects the management OF the none
tary system of the country shall be
separated from those functions which
are of a purely fiscal nature. IL would
doubtless be well. also. to find a place
for silver where IL will cause least trou-
BILE, by retiring all notes under ten dol
lars. and to authorize the secretary to
retire. at least temporarily. notes which
have been once redeemed. III IL should
be decided not to establish a separate
issue department. at least the function
of the secretary In maintaining the par
ity Of gold and silver should be made
obligatory.
HI. The Banking system.
Observation-Disclosures decision may
be reached with reference to the much
disputed question as to whether United
States legal tender notes shan continue
to hold their place as part of the paper
currency of the country. II Is certain
that the maintenance of some system
of bank issues will be Indispensable.
This system should. without doubt. be
under federal control. and should take
such form as TO insure much greater
elasticity than exists in the present sys-
tenn. provided always that the security
OF the issue shall be in no wise I'M
paired.
AS respects the method to be en-
ployed for attaining his needed increase
in elasticity. IL is believed that the
really successful n must involve is
suing some portion OF the circulation
upon ordinary banking assets. The chief
reason for this. as already Indicated. Is
that such ordinary banking assets are
the only ones which are universally and
readily available when expansion Is
needed. The superiority OF such a sys-
tenn is further insured by the fact that
there Is a very close correspondence be-
tween the amount of such assets in the
possession OF the banks and the need Of
the community for currency; since
these assets. like the need for money,
vary in amount with the volume OF
business. As respects the security OF
such notes. there need be no anxiety.
provided the system is supplemented
with the device Of a safety fund. or with
one or more OF the various other ex-
ped.ents which have been proposed. IL
Il be urged that nothing can make this
system really safe. at least for the banks
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