Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-06
CURRENCY REFORM PLAN.
Scheme Proposed by indianapolis
Monetary Commission,

WASHINGTON, January 5.-The re-
port of the Monetary Commission APP
pointed under authority of the conven~
ton Of businessmen held in Indianapolis
last January has just been made public.
This synopsis is supplied by the commits
sion:
ut retains practically unchanged the
existing metallic money. The existing
gold standard on which business has been
done since 1873 is OF course, maintained,
on the ground that industrial interests
demand certainty as to what the standard
shall be. For the steady employment Oh
labor, factories and mines must be con-
stantly operated; and constant operation,
in the judgment of businessmen, Is I'M
possible so long as there is uncertainty as
to the standard on which prices of goods
and orders are based. And 10 this end
il is urged that the United States should
remove all uncertainty as to the mean
ing of "coin" in its obligations, thereby
saving the taxpayer by the ability 10
borrow at a lower rate Of interest.
mo attempt is made 10 remove the eX-
listing silver dollars, nor TO change their
legal-tender quality; on the contrary, 4
place is provided for them in the circula-
tion by forbidding the issue OF any paper
money other than silver certificates in de-
nominations below $40. The silver cur
rency, which will be in the hands OF the
people, must be kept on parity with
gold, as is now provided by law, and
this should be done by requiring the
Treasury TO give gold for silver dollar
on demand. Consequently. when 1t Is
known that a silver dollar can be ex-
changed for gold it will circulate freely
lin the form of certiticates), and our me-
talic money. without being diminished
will be unified on a certain basis. And.
a. all this silver currency viii be needed
10 meet the demands for large change
(when other paper below $40 is retired, 1t
will not be presented Tor redemption at
the Treasury and it will create no strain
on the gold reserve. But no more silver
dollars should be coined.
THE GOLD RESERVE.
"The commission contend that the ten
different kinds of money now in use
create an anomalous and confusing situ-
alton Moreover, the whole fabric rests
on too slender a reserve Of gold. IL is
urged that the demand obligations OF the
government should not be used as money,
because they may be, and have been, pre-
scented for gold 10 the injury Of the ma
TONS credit. This causes grave doubts
as to the standard on which the business
operations OF the country rest Every
thing which, by experience, creates I'M
certainty and hurts trade, hInderS pros
perity, and should be removed. Hence the
fiscal affairs of the Treasury relating 10
the receipt and disbursement or pubhc
revenue should be entirely separated from
the monetary functions dealing with the
exchange and redemption or the currency.
BY establishing a separate division or
issue and redemption In the Treasury, IL
will be impossible to take away funds set
apart for the protection Of our monetary
system and use them for current expendi-
lures =
above all. 1t is regarded as dangerous
TO maintain the present practice Of using
government demand obligations as money
Our fathers never made anything full le-
gal-tender money except gold and silver,
but In the stress OF civil war, confusing
the fiscal and monetary functions or the
State forms of debt due on demand were
used as money, not as the result OF de-
liberation. but Of emergency conditions.
They We're issued exactly because tnere
We're no resources In the Treasury, and so
they DEPRECATED drove out gold, furnish
ed a huctuating standard, increased the
national debt enormously, caused
change I'm prices whenever the credit OF
the paper standard fuctuated, reduced the
purchasing power OF wages. and by eau
sing unexpected changes in the level OF
prices gave rise 10 extraordinary specu-
iation Increased the severity or COM
mercial crises. and placed the small pro-
Queer at a disadvantage with the large
operator. For seventeen years QS62-lS7y)
the government paper was falsifed
promise and our standard was based on
this lie. Trade and industry became
take care of themselves, but men Of small
means should be protected from the evils
arising from such uncertainty OF the
standard.
PAPER MONEY A GREAT BURDEN.
'If the demand obligations of the gov
eminent are used as money. reserves must
always be kept on hand 10 redeem them.
They are not, therefore, loan without In
terest: and the expense OF keeping up
these reserves has made the paper money
a very great burden 20 the taxpayer by
an increase OF the public debt. These gold
reserves are necessary, unless the govern
ment permits its notes 20 go TO protest.
The mere credit OF the United States be-
hind IT'S notes is too vague "A thing. its
power TO tax Is too remote, TO provide
cash on hand for instant use 80 far as
expense Is concerned. this debt could have
been more easily borne by changing II
into low-interest bearing bonds
For these and other reasons the COM
mission strongly urges the government 10
withdraw It's demand obligations now used
as money, decline 10 nrovide gold for ex-
porters. and put the burden and expense
OF maintaining a redeemable paper circu-
lation upon the banks. In order TO meet
the demand obligations. the present re-
serves OF gold in the Treasury furnish a
beginning to be set aside In the Division
OF Issue and Redemption: and to meet