The Irish standard., 1898-01-08
ITS PLANS MADE KNOWN,
The Business Mems Monetary COM
mission Makes Report
to the Public.
BRIEF ABSTRACT OF the DOCUMENT.
Our Present Currency System An.
alyzcd ana Its Defects Pointed Out
-SuxGestiOns Made as to How 1t
May Bc Rcf0rmcd-rhe Plan of the
COmmisstOn.

Washington, Jan. 3.-The report of
the monetary commission appointed un-
der authority of the convention of busi-
ness men held in indianapolis last jan
uary has just been made public. Fol-
lowing is synopsis of the documents:
It retains practically UNCHANGED the ex::
listing metallic money. Tho existing gold
standard on which business has been done
since 1879 is maintained. on the ground
that the industrial interests demand GER
tainty as TO what the standard shah be:
To this end 1t is urged that the United
States shall remove all uncertainty as to
the meaning CT ''coin" in its obligations.
thereby saving the taxpayer by the ability
to borrow at a low rate Of interest. No
attempt Is made TO remove the existing
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 dcnomina-
tons below ten dollars.
A Dangerous Practice.
It Is regarded by the commission as dam
gerous to maintain the present practice
OF using government demand obligations
as money. They were issued because there
were no resources in the treasury: and
so they deprecated. drove out gold. fur
nshed a fluctuating standard. Increased
the national debt enormously. caused q
change in prices whenever tho credit Of
tuS paper otdIudIu luCttlalcus dI!A ny
causing unexpected changes in the level
Of prices gave rise to extrao ordinary spec
ulation. increased the severity OF COM
mercial crises. and placed the small pro-
Queer at disadvantage with the large OPP
orator.
Good Word for the hank Note.
The demand obligations CT the United
States were not a money based on. prop
erty: they We're only debt. On the other
hand. a bank note is never issued (fraud,
Of course. excluded except for cons:dcra-
ton In negotiable property of equal or
greater value. The bank note comes forth
as the sequel to a business transaction,
and is based on the active property OF tho
country which is passing between pro-
always negotiable and always equal to tho
duty Of meeting the note liability. Bank
notes are as sound as the business transact.
lions of the country. The currency of the
country, moreover. should increase as the
the rigid unchanglns issues Of the gov
eminent make them an ineastic part of the
circulation, while by the very process Of
their issue bank notes alone can be au-
tomatically adjusted to the changing trans
actions of the business community.
To Secure Absolute Safety.
In amending the present national bank
ing system, the commission were actuated
by desire to secure absolute safety to
the note-holder; to make the notes uni
the country. to create an elastic system.
which. while expanding in response to In
creasing transactions. should healthily con-
tract when transactions diminsh: and
which would help in a better distribution
OF banking facilities throughout tho west
ern and southern states.
Plan of the CommiAsiOn.
While providing for partial use Of
bonds for securing notes (25 per cent. of the
.capItaD the commission proposed that
notes beyond this should be issued on all,
instead OF part Of the resources OF bank:
and within a few years that no special
bond security should be required. Banks
may issue notes up to co per cent. of their
capital without restraint; for issue be-
yond GO per cent. and up 10 so per cent.
they pay tax Of two per cent: for those
beyond 50 per cent. and up to 100 per cent.
they pay tax Of six per cent. These notes
would be prior lien upon all the resources
of the bank. and. in addition, upon the
stockholders liability. Moreover, all banks
issuing notes contribute five per cent. Of
their circulation as permanent guaranty
fund. For daily rcdemptions banks should
keep five per cent redemption lund IN
the hands of the comptroller Of the cur
rency. Banks of $25.CCO capital may be
established in places OF 1000 Inhabitants:
and branches OF banks are also permitted.