The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1898-02-22
MONETARY COMMISSIONS REPORT.
Made by Authority of the Indianapolis
Business Mons Convention.


Made by Authority OF the Indianapolis
business Mems Convention.
The report of the Monetary Com
mission appointed under authority of
the convention of business men, held
In Indianapolis last January, has just
been made public. The existing gold
standard on which business has been
done since 1879 is maintained on the
ground the industrial interests de-
mand certainty as TO what the stand
ard shall be. To this end it is urged
that the United States should remove
all uncertainty as to the meaning of
coin" in its obligations, thereby saw
ing the taxpayer by the ability to bor-
row at a lower rate of interest. 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 GER
tificates in denominations below SO.
1t is regarded by the Commission as
dangerous to maintain the present
practice of using Government demand
rs money.
The Commission, therefore, strongly
urge the Government to withdraw its
demand obligations now used as money,
decline to provide gold for exporters
and put the burden and expense of
| maintaining redeemable paper
circulation upon the banks. In order
to meet the demand obligations, the
present reserves of gold in the Treasury
furnish sufficient sum to be set aside
IN Division of Issue and Redemption;
and tho Secretary of the Treasury is
authorized to sell bonds whenever the
reserves need replenishment. In this
way, or from surplus revenue, the de-
mand obligations THAT is, United
States notes and Treasury notes of
$780, can be removed in such way
that the cost to the country can be re-
duced, with the result Of simplifying
our currency, and adding to confidence
In the certainty of our standard. BY
the plan of the Commission the with
drawal of Government paper is SO
arranged that contraction cannot posi-
bly, take place; ii United States notes
are cancelled their place will be taken
by the gold paid ont for them, or by
the expansion of bank notes.
The demand obligations OF the Uni
ted States were not money based on
property; they were only debt On
the other hand, bank ncte is never
issued fraud, of course, excluded) ex-
cept for consideration in negotiable
property of equal or greater value.
The bank note comes forth as the Sc
quel OF business transaction, and is
based on tire active property of the
country which is passing between pro-
ducers and consumers. This property
is always negotiable and always equal
to the duty of meeting the note liabil
ity. Bank notes are as sound as the
business transactions of the country.
The currency of the country, more
over, should increase as the transac-
tons of the country increase; hence
the rigid unchanging issues of the
Government make them an inelastio
part of the circulation, while by the
very process of their issue bank notes
alone can be automatically adjusted to
the changing transactions of the bust
ness community.
In amending the present national
banking system, the Commission were
actuated by desire to secure abso-
Lutte safety to the note holder; to make
the notes uniform and of equal cur
rency in all parts of the country to
create an elastic system, which, while
expanding in response TO increasing
transactions, should healthily contract
when transactions diminish, and which
would help in better distribution of
banking facilities throughout the
Western and Southern States.
While providing for the partial use
of bonds for securing notes twenty
five per cent. of the capital) the Com
mission propose that notes beyond
this should he issued on all, instead
of part of the resources Of bank:
and within n few years that no special
bond security should be required.
Banks may issue notes up to sixty per
cent. of their capital without re-
straint; for issue beyond sixty per
cent. and up to eighty per cent. they
pay tax of two per cent for those
beyond eighty 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 q per-
manent guaranty fund. For daily re-
demptions, banks are required to keep
a five per cent. redemption fund in
tho hands of the Comptroller of the
Currency. Banks of $500 capital
may be established in places of 1000
inhabitants, and branch banks are
also permitted.