The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-03
CURRENCY REFORM PLAN.
TIE SCHEME PROPOSED mr. THE
MONETARY COM MISSION.
II Retsins the Rxisiins Gela ~standar and
Prepeses 20 Withdraw the Greenbncks ant
Pat ths Bsrden ana E1peuse OF Hastntsin'
isE . Paper Currency Upon the Bnnks

Pat the Harden ana Rxpeuse OF Rsatntsir-
ipE . Paper Currency Upon the Banks.
WASHINGTON, Jan. 2.-The report Of the
Monetary Commission appointed under author
" Of the convention OF business mon held In
Indianapolis last January. has just been made
public. This synopsis is supplied by the Com.
mission:
"1t retains practically unchanged the ex-
listing metallic money. Tho existing gold
standard on which business has been done since
1879 Is, Of course, maintained, on the ground
that industrial interests demand certainty as to
what tho standard shall be. For the steady
employment OF labor, factories and mines must
be constantly operated; and constant operation,
In the Judgment Of business men, Is impossible
80 long rs there is uncertainty as to the stand.
ard on which prices of goods and orders arc
based. And to this end it Is urged that the
United States should remove all uncertainty
as to the meaning of "coin" In its obligations,
thereby saving the taxpayer by the ability to
borrow at n lever rate OF interest.
mo attempt is made to remove tho existing
silver dollars, nor to change their legal tender
quality; on tho contrary, q place Is provided for
them In the circulation by forbidding the issue
Of any paper money other than silver certih-
Gates in denominations below BIO. The silver
| currency, which will DO in the hands OF the peo-
| pie, must be kept on q parity with gold, as Is
now provided by law, and this should be done
by requiring the Treasury to give gold for q
SILVER dollar on oeihaho. consequently wnehi y
is known that a silver dollar can be exchanged
for gold it will circulate freely lin the form Of
| certifcates), and our metallic money, without
being diminished, will be unified on a certain
basis. And, as all this silver currency will be
needed to meet the demands for large change
when other paper below $40 is retired), 1t will
not be presented for redemption at the Treas.
ury, and it will create no strain on the gold re.
serves. But no more silver dollars should be
coined.
the commission contend that tne Ten oiner-
ent kinds of money now in use create an anon
alous and confusing situation. Moreover, .ne
whole fabric fes;s on 100 slender a reserve Oh
" inc government snouiu no' oe usea ss nUn,
because they may De- ana nave oeen' presented
for gold to the injury OF the nations credit.
MI, no,so. oror, 6o,bts NJ. IN tho standard IN
which the business operations of the country
rest. Everything which, by experience, creates
uncertainty and hurts trade, binders prosperity
fairs Of the Treasury relating to the receipt and
dssliSnr fS %l9b the e1 tcGm ses and %dG rede%pt fSne Of fRs
currency. BY establishing u separate division
be impossible TO take away funds set apart for
the protection of our monetary system and use
| them for current expenditures.
above all, it is regarded as dangerous to main.
tain the present practice OF using Gov rnment
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 fiscal and monetary func-
lions of the State, forms Of debt due on de:
mand were used as money, not as the result Of
deliberation, but Of emergency They
sources WerS in the treasury, and SO they depre-
ciated, drove out gold, Furnished q fiuctuating
s maniiH' c, Increased 8 eAs the n Ia STiees d Shen sn0a;
tho credit Of the paper standard fuctuated, re-
duccd the purchasing power of wages, and by
prices, gave rise to extraordinary speculation,
Increased the severity Of commercial crises,
t atu WITT WITH the large operator. For seventeen
years us62-ls79) the Government paper was
a falsihsd promise, and our STANDARD was based
lativo. Men of large wealth can take care of
themselves. but men of small means should be
protected from the evils arising from such
III the demand obligations of the Government
kept ON hand TO redeem them. They are not,
therefore,, q loan without interest; and the ex.
the paper money a. very great burden to the
taxpayer by an increase OF the public debt.
These gold reserves are necessary. unless the
The mere credit Of the United States behind its
notes is too vague q thing, its power to tax Is
use. So far as expense is concerned, this debt
could have been more easily borne by changing
IL INTO lOw.lntereSt bearing OOnus.
"For these and other reasons the Commission
strongly urges the Government TO withdraw It's
cline TO provide gold for exporters, and put the
burden and expense Of maintaining redeem
able paper circulation upon the banks. In or.
der to meet the demand obligations, the present
reserves of gold in the Treasury furnish a be-
ginning to be set aside in the Division Of Issue
and Redemption; and to meet possible contingent
cies the Secretary of the Treasury is authorized
to sell bonds whenever the reserves need replen-
ishment. In this way, OF from surplus reve.
nue.. the demand obligations THAT is. United
States notes and Treasury notes of lS90) can DO
gradually removed, and the cost to the country
can be reduced; while this process will also give
the inestimable advantage OF ceasing to use de-
mand debts as money, OF simplifying our cur
rency. and Of adding TO confidence in the GER
tainty OF our standard. By the plan Of the COM
mission. Government, paper is Withdrawn in
tho first five years only SO fast as the banking
currency expands, so that contraction cannot
possibly take place; II United States notes are
cancelled their place will be taken by the gold
paid out for them, or by the expansion OF bank
notes, under the new system proposed; and in
the following five years all the remaining
United States notes are TO be retired.