The Louisiana populist., 1898-02-04
MONETARY COMMISSIONS REPORT.
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 it's obligations, thereby saw
ing the taxpayer by the ability to bor-
row at lower rate of interest. No
attempt j 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 forbiddinS the issue of
any paper money other than silver GER
tificates in denominations below $40.
It is regarded by the Commission as
dangerous to maintain the present
practice of using Government demand
obligations as 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 q redeemable paper
circulation upon the banks. In order
to meet the demand obligations, the
present reserves of gold in the Treasury
furnish q sufficient sum to be set aside
in Division of Issue and Redemption;
and the 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
1890, 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; if United States notes
are cancelled their place will be taken
by the gold paid out 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 note 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 a business transaction, and is
based on the 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 unchaneing issues of the
Government make them an inelastic
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 busi-
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 capitaD the Com
mission propose that notes beyond
this should he issued on all, instead
of part of the resources of bank;
and within o 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 AID up to 100
per cent. Jney pay tax of six per
cent. These notes would be q 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 o per-
manent guaranty fund. For daily re-
demptions, banks are required to keep
q FIVE per cent. redemption fund in
tho hands of the Comptroller of the
Currency. Banks Of $4,000 capital
may be established in places Of 1000
inhabitants, and branch banks are
also permitted. aA-
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