The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-01-08
IT PRESENTS ITS PLAN.
Main Points in the Report of the
Monetary Commission.
Presents what IL Considers 90 Be de-
fects In Our Present Currency
system. and Suggests How Ia
May lie Reformed.

On uH uUHNIhfA XII AlG AtDOIA VI llC
tary commission appointed under au-
thority Of the convention of business
men held in indianapolis last January
which has just been made public:
II retains practically unchanged the ex-
listing metallic money. The existing gold
standard on which business has been done
since 1879 IS, OF course. maintained. on the
ground that industrial interests demand
certainty as 10 what the standard shall be.
For the steady employment OF labor. fac
tories and mines must be constantly Op-
Grated; and constant operation. IN the judg-
ment OF business men, IS Impossible so long
as there is uncertainty as 10 the standard
on which prices OF goods and orders are
based And TO this end, Il Is urged that
the United States should remove all un-
certainty as 70 the meaning OF coin" In It's
obligations. thereby saving the taxpayer
By the ability 10 borrow al lower rate Of
interest.
Place for silver.
No attempt Is made 10 remove the exist
Ing silver dollars. nor 20 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 donomina-
tions below ten dollars. The silver cur
rency. which viii be IN the hands Of the
people. must be kept on a parity with gold
as is now provided by law, and this should
gold FOR a silver dollar on demand, Con-
sequently, when II Is known that a silver
dollar can be exchanged for gold Il wiz
circulate freely On the form OF certlh-
cates). and our metallic money. without be-
Ing diminished. viii be unified on a certain
basis. And. as all this silver currency viii
be needed 10 meet the demands for large
change Cwhen other paper below ten dol
lars Is retired, Il Will not be presented for
redemption at the treasury, and II win
~ N a ST "a "a On a rrol Ttftf
no more silver dollars should be coined.
Reserve TOO slender.
The commission contend that the ten DIFF
ferent kinds OF money now IN use create an
anomalous and confusing situation. More
over. the whole fabric rests on too slen-
der a reserve OF gold. II u urged that the
demand obligations OF the government
should not be used as money. because they
may be, and have been, presented for gold
90 the Injury OF the nations credit This
causes grave doubts as 20 the standard on
which the business operations OF the coun-
try rest Everything which. by experience
creates uncertainty and hurts trade.
binders prosperity and should be removed.
Hence the fiscal affairs OF the treasury re-
latlng TO the receipt and disbursement OF
public revenues should be entirely sep
arated from the monetary functions deal
ing with the exchange and redemption OF
the currency. by establishing a separate
division Of issue and redemption In the
treasury, II viii be impossible 70 take away
funds set apart for the protection OF our
monetary system and use them for current
expenditures
Frnught with Danger.
Above all, - Is regarded as dangerous 10
maintain the present practice OF using gov
eminent demand obligations as money our
fathers never made anything full legal |
tender money except gold and silver: but
In the stress OF civil war; confusing the
fIftFl
forms Of debt due on demand were used as
money not as the result OF elaboration but
OF emergency conditions. They were IS
sued exactly because there were no re-
sources IN the treasury, and so they de-
preciated. drove out gold, furnished a
fluctuating standard. increased the nation
al debt enormously, caused a change IN
prices whenever the credit Of the paper
standard fuctuated. reduced the purchas-
ing power OF wages. and by causing un-
expected changes In the level OF prices
gave rise 20 extraordinary speculation, i'm
creased the severity OF commercial crises.
and placed the small producer at dsad-
vantage with the large operator For II
years 0S62-iS7D the government paper was
a falsi0cd promise, and our standard was
based on this lie. Trade and industry be-
came speculative. Men OF large wealth can
take care OF themselves; but men Of small
means should be protected from the evils
arising from such uncertainty OF the stand
ard.
If the demand obligations Of the govern
ment are used as money, reserves must al
ways be kept on hand 20 redeem them.
They are not therefore a loan without In
terest. and the expense OF keeping up
these reserves has made the paper money
n very great burden 10 the taxpayer by
an increase OF the public debt. These gold
reserves ARE necessary. unless tho gov
eminent permits ita notes 70 80 TO pro-
test The mere credit OF the United States
haHIUH ~ n THING ffe
power 10 tax Is too remote. 10 provide cash
on hand FOR instant use So far as expense
Is concerned. this debt could have been
more easily borne by changing It into
low interest-bearing bonds.
should lie withdrawn.
For these and other reasons tho com
mission strongly urge the government 10
withdraw It's demand obligations now used
as money, decline TO provide gold for eX-
porters. and put the burden and expense o.
maintaining a redcomable paper clrculn-
tlon upon the banks In order to meet the
demand obligations. the present reserves
OF gold IN the treasury furnish a beginning
20 be set aside hi the division Of issue aud
redemption. and 20 meet possible contin-
gencics the secretary OF the treasury 81
authorized TO sell bonds whenever the rec
serves need rcpienishment In this way
or from surplus revenue. the demand obli.
cations chat IL. United States notes and
treasury notes of 1891 can be gradually r..
reduced. while this process viii also give
the iucstimahle advantage Of ceasing 20
use demand debts az money, OF simplify
ing our currency, and OF adding 90 conf
dence IN the certainty Of our standard
By the plan OF the commission. government
paper u withdrawn w the first ave wears
only as fast as the banking currency ex-
panda 40 that contraction cannot possibly
take place. " United States notes are can
ceied their place will be taken by he gold
paid out for them. or by the expansion of
bank notes (under the new system pro-.
posed. and IN the following five years
all the remaining United States notes are
20 be retired.
rank Note II Landed.
The demand obligations OF the United
States were put forth solely because there
were no funds IN the treasury 10 redeem
them The notes were only evidence that
property had been received and used up
for services or supplies or public buildings
(no longer available assctsl The govern
ncnt by the nature Of the operation ala
not retain. as the notes went out. any
rroUrrfX immediately convertible Into coin