Griggs courier., 1898-01-07
ITS Plans MADE KNOWN.
The Business Mems Monetary Com
mission Makes q Report
to the Public.
BRIEF ABSTRACT Of THE DOCUMENT.
Our Present Currency system An
npysed and Its Defects Esointes, Out
-Suxsestions Made as to How At
May he Rcformed-The Plan of the
COmmtssion.

W0SOluklOus JAM 0.-4ue report Oh
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 document:
It retains practically unchanged the ex-
listing metallic money. The existing gold
standard on which business has been done
since 1879 is maintained. on the ground
that the Industrial interests demand cer-
tainty as to what the standard shall be.
To this end. 1t is urged that the United
States shall remove all uncertainty as to
the meaning Of "coin' In Its obligations,
thereby saving the taxpayer by the ability
to borrow at 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 denomina-
uons below ten dollars.
A Dangerous Practice.
1t 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
nished q fuctuating standard. increased
the national debt enormously. caused q
change in prices whenever the credit of
the paper standard ductuated. and by
causing unexpected changes in the level
Of prices gave rise to extraordinary spec
ulation, increased the severity OF COM
mercial crises. and placed the small pro-
ducer at q disadvantage with the large op-
orator.
Good Word for the Bank Note.
The demand obligations OF the United
States were not money based on prop
erty; they were only a debt. On the other
hand, a bank note is never issued (fraud.
Of course, excluded) except for considera-
tion in negotiable property of equal ,or
greater value. The bank note comes forth
as the sequel to a business transaction.
country which Is passing between pro-
ducers and consumers. This property is
always negotiable and always equal to the
duty Of meeting the note liability. Bank
notes are as sound as the business transac-
tions Of the country. The currency OF the
country, moreover. should increase as the
transactions Of the country increase; hence
the rigid unchanging issues Of the gov
ernment make them an tnelastic part Of the
circulation, while by the very process Of
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
form and Of equal currency in all parts Of
the country. to create an elastic system.
which, while expanding in response to in-
creasing transactions. should healthily con-
tract when transactions diminish: and
which would help in better distribution
Of banking facilities throughout the west
ern and southern states.
Plan of the Commission.
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 q part of. the resources of bank;
and within few years that no special
bond security should be required. Banks
may issue notes up to 60 per cent. Of their
capital without restraint; for issue be-
yond GO per cent. and up to so per cent.
they pay tax Of two per cent: for those
beyond 50 per cent. and up to 100 per cent.
they pay q 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 redemptions. banks should
keep a five per cent redemption fund In
the hands Of the comptroller Of the cur
rency. Banks Of $4,000 capital may be
established in places Of 1000 inhabitants;
and branches OF banks are also permitted.