The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1898-01-07
TT PRESENTS IT'S PLAN.
Main Points in the Report OF the
Monetary Commission
Presents yvhat Il Consider to ne De
feetB in Oar Present Currency
System, and Suggests How II
May Be Reformed

Washington, Jan. 3.-The report Of
the monetary commission appointed IN
der authority Of the convention Of bust
ness men held In Indianapolis last jan
uary has just been made public Fol-
lowing is a synopsis Of the document:
It retains practically unchanged the ex-
isting metallic money The existing gold
standard on which business has been done
since 1873 is maintained on the ground
that the industrial interests demand GER
tafnty as TO what the standard shall be
To this end, IL 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 q low rate OF interest. No
attempt IS made to remove the existing
silver dollars, nor TO change their legal
tender quality; on the contrary, a place
IS provided for them in the circulation by
forbidding the issue OF any paper money
other than silver certificates in oenomina-
tiOns below ten dollars
A Dangerous Practice.
It IS regarded by the commission as dan
gerCus TO maintain the present practice
OF using government demand obligations
as money. They were issued because there
were no resources in the treasury; and
50 they deprecated. drove out gold fur
nished a ductuating standard increased
the national debt enormously, caused
change in prices whenever the credit OF
the paper standard fuctuated, 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
Queer at a disadvantage with the large Op-
orator
should Be Withdrawn.
For these and other reasons the commits
sion strongly urge the government to with
draw its demand obligations now used as
money, decline to provide gold for ex-
DOrters and put the burden and expense OF
maintaining a redeemabie paper circuia ton
upon the banks. In order TO meet the de-
mand obligations, the present reserves OF
gold in the treasury furnish a sumcient
sum TO be set aside in the division OF issue
and redemption: and to meet possible con-
tingencies the secretary OF the treasury Is
authorized to sell bonds whenever the re-
serves need replenishment- In this way
OF from surplus revenue, the demand OBJ
legations Chat IS, United States notes and
treasury notes Of 1850 can be removed in
such a way that the cost to the country
can be reduced; while this viii also give
the fnestimable advantage Of ceasing to use
demand debts as money. simplifying our
currency, and adding to confidence in the
certainty Of our standard By the plan
Of the commission the withdrawal Of gov
eminent paper is so arranged that con
traction cannot possibly take place. II
United States notes are Cancelled their place
viii be taken by the gold paid out for them,
or BY the expansion Of bank notes (under
the new system proposed
Good Word for the Bank Note.
The demand obligations Of the United
States were not a money based on prop
erty; they were only debt On the other
hand, a bank note is never Issued fraud,
Of course, excluded except for a considera-
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 the
7fr-r- f= inc haH
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-
lions 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
eminent make them an inelastic part Of the
circulation, while by the very process Of
their issue bank notes alone can be au-
tomaticaIIy 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 a 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 a better distribution
or banking facilities throughout the west
ern and southern states.
In view Of the scarcity Of United States
bonds, they cannot long be regarded as a
basis OF circulation Moreover, any bond
security Of a high character yields a low
rate Of interest; and in time of strfngency
when borrowers need loans and the mar
ket rate Of interest is high, there IS no in
ducement to buy these bonds to increase
circulation Hence, under the present sys-
TEN, when notes should be most needed,
It is least profitable to issue them
Plan of the Commission.
While providing for a partial use OF
bonds for securing notes Us per cent Of the
capitaD the commission proposed that
notes beyond this should be issued on al,
instead Of a part OF, the resources Of bank;
and within q 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 60 per cent and up to 50 per cent
they pay a tax Of two per cent; for those
beyond 50 per cent and up TO 100 per cent
they pay a tax Of six per cent These notes
would be a 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
Cheir 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 $500 capital may be
established in places Of go Inhabitants
and branches OF banks are also permitted