Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-01-03
BANKSAND CURRENCY
Recommendations of the Monetary
Commission.
RETIREMENT OF GOVERNMENT PAPER
Low Rate Bonds to Increase the
Gold Reserve.
D ETAILS OF THE PLAN S

The report of the monetary commission,
containing the plan of currency reform
proposed by it, together with a full discus
sic n of the subject and mass of valuable
statistics and other informa ton, has been
sent out by the executive committee of
the Indianapolis convention. The SUBJ
committee, headed by ex-Secretary Fair
child, has completed the work of draft
ing bill which embodies the recommen.
daticns of the commission. This bill will
be introduced in Congress by Representa-
tive Overstreet Of Indianapolis. Following
are the main points of the argument and
the plan in detail
The Standard.
THE most serious evil of our present
situation Is the threatened degradation of
cur monetary standard. The concurring
habits Of Individual mankind fix the stand
ard by which to measure the value of
labor and property. Governments cannot
try to change this standard without max
ing mischief. Tle standard thus fixed is
now gold. This is a fact of civilization
Government, if it serves the people WELL
accepts this fact and records it in law.
LAS an immediate means toward this
end, We recommend that it. shall be pro-
vided by law that all obligations of the
United States, existing and future, shall be
payable in gold except when otherwise
expressly provided. By the wise and cour-
ageous action of it's executive officers the
government has upheld that standard by
paying it's Obliga tons in gold. But until
such payment is required by law, and the
door thus closed to all question as to the
meaning of the word coin in the obliga-
tons of the government. we shall not have
an established gold standard in the full
sense of those words"
The report goes fully into the financial
system of the country, calls attention to
points considered elements of weakness
and then proposes the following plan Of
currency reform:
First. The existing gold standard snail
be maintained; and to this end the stand
ard unit of value shall continue, as now,
to consist Of 25.S grains Of gold nine-ten.;ls
fine. or 1872 grains of pure gold, as now
represented by the one-tenth part of the
eagle. All obligations for the payment q
money shall be performed in conformity
to the standard aforesaid; but this pro
vision shall not be deemed to affect the
present legal-tender quality of the silver
paper currency having the quality of le-
gal tender
"All obligations of the United States for
the payment of money now existing or
hereafter entered into, shall, unless other
wse expressly prov. ded, be deemed and held
to be payable in gold coin of the United
States, as defined in the standard afore-
said. Gold coinage as now; no silver dol
lars shall be hereafter coined. Coinage and
redemption of subsidiary and minor coins
as now.
Issue and Redemption Division.
There shall be created a separate d.
vision in the Treasury Department, to be
Known as the division of issue and re-
demption. under the charge of an assistant
trkaa of JTr;t,
be appointed by the President by and with
the advice and consent of the Senate.
ITO this division shall be committed all
functions of the Treasury Department per-
tanning to the issue and redemption of
notes or certificates, and to the exchange
Of coins; and this division shall have the
custody OF the guaranty and redemption
funds of the national banks. and shall
conduct all the operations of redeeming
national bank notes, as prescribed by law:
and to this division shall be transferred
all gold coin held against outstanding gold
certificates. all silver dollars held against
outstanding silver certificates, all United
States notes held against outstanding cur
rency certificates, and all silver dollars and
silver bullion held against outstanding
treasury notes of 1890, and all subsidiary
and minor coins needed for the issue and
exchange of such coins, and the funds de-
posted with the treasury for the !iquida-
ton of national bank notes. All accounts
shall be kept entirely apart and distinct
from those of the fiscal departments of
the treasury; and the accounts relating to
the national banks shall be separate and
apart from all other accounts.
"A reserve shall be established in this
division by the transfer to 1t by the treas
urer Of the United States from the general
funds of the treasury of an amount Of
gold In coin, and bullion, equal to % per
cent Of the aggregate amount Of both the
United States notes and treasury notes
issued under the act Of July IA. 1890, out
standing. and further sum in gold equal
to per cent of the aggregate amount of
the coinage of silver dollars. This re-
serve shall be held as common fund,
and used solely for the redemption of such
notes and in exchange for such notes; and
for silver and subsidiary and minor coins.
Maintaining Gold Reserve.
ut shall be the duty Of the Secretary
of the Treasury to maintain the gold re-
serve in the division of issue and redemp-
ton at such sum shall secure the GER
tain and immediate redemption of IL notes
and silver dollars presented, and he pre-
servation Of public confidence; and for
this purpose he shall from time to time,
as needed, transfer from the general fund
of the treasury to the division Of issue
and redemption any surplus revenue not
otherwise appropriated, and in addition
thereto he shall be authorized to issue
and sell, whenever it is In his judgment
necessary for that PURPOSE, bonds OF the
United States bearing interest not exceed
ing per cent, running twenty years, but
reasonable in gold coin, at the option of
the United States, after one year; and
the proceeds of all such sales shall be paid
into the division of issue and redemption
for the purposes aforesaid.
ITO provide for any temporary deficiency
which may at any time exist in the .lscal
department Of the treasury of the United
States the Secretary Of the Treasury shall
be authorized, at his discretion, to issue
certificates Of Indebtedness of the United
States, payable in from one to five years
after their date, to the bearer, of the de-
nominations of $50 or multiples thereof
with interest at a rate not to exceed =, per
centum per annum, and to sell and dispose
of the same for lawful money at the Treas
ury Department, and at the subtreasuries
and designated repositories of the United
States and at such post offices as he NAV
select. And such certificates shall have the
like privileges and exemptions provided in
the act to authorize the refunding of the
national debt. approved July IA. 1870
whenever money is to be borrowed on
the credit of the United States the Secre-
tary of the Treasury shall be authorized.
instead of issuing the usual forms of en-
graved bonds, upon receiving lawful money
Of the United states in sums of not less
than fffty dollars ($5O in any sinpIe nav