Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1898-01-03
The Monetary Commission
Makes Recommendations.
GOLD STANDARD TO BIZ MAiST iINED
Some Changes In Regard to Bank Notes.
Urgent Need of More Money For Cir
culation-The Banking Currency to


under authority of the convention of
business men held in Indianapolis last
January has just been made public. 1t
retains practically unchanged the
present metallic money. The existing
gold standard on which business has
been done since 1879 is of course main
tanned, on the ground that industrial
interests demand certainty as to what
the standard shall be. For the steady
employment of labor, factories and
mines must be constantly operated
and constant operation, in the judg-
ment of business men, is impossible SO
long as there is uncertainty as to the
standard ON which prices Of goods and
orders are based. And to this end it 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 to
borrow at a lower 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 forbtddIng the issue of any paper
money other than silver certificates IN
denominations below $40. The silver
currency, 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 reQuirii
the treasury to give gold for silver
dollar on demand. Consequently when
it is known that silver dollar can be
exchanged for gold it will circulate
freely Tin the form of certiticates), and
our metallic money, without being di-
minished, will be unified on certain
basis. And. as all this silver currency
will be needed to meet the demands for
largo change when other paper below
$40 is retired), it will not be presented
for redemption at the treasury, and it
will create no strain on the gold re-
serves. But no more silver dollars
should be coined.
The commission contend that the ten
different kinds of money now IN use
create an anomalous and confusing sit
uation. Moreover, the whole fabric
rests on too slender a reserve of gold.
1t is urged that the demand obligations
of the government should not be used
as money, because they may be, and
have been, presented for gold to the
injury of the nations credit. This
causes grave doubts as to the standard
on hich the business operations of the
country rest Everything which, by
experience, creates uncertainty and
hurts trade, binders prosperity, and
should be removed. Hence the fiscal
affairs of the treasury relating TO the
receipt and disbursement of public
revenue should be entirely separated
from the monetary functions dealing
with the exchange and redemption of
the currency. By establishing separ-
ate division of issue and redemption III
the treasury it will be impossible to
take away funds set apart for the pro-
lection OF our monetary system and use
them for current expenditures.
Above all, it is regarded as dangerous
to maintain the present practice OF
using government demand obligations
as money. Our fathers never made
anything full legal tender money ex-
cept gold and silver but in the stress
of civil war, confusing the fiscal and
monetary functions of the state, forms
Of debt due on demand were used as
money not as the result of elaboration
but of emergency conditions. They
were issued exactly because there were
no resources IN the treasury and SO
they deprecated. drove out gold, fur
nished fluctuating standard, increased
the national debt enormously, caused
change in prices whenever the credit
Of the paper standard huctuated, re-
duced the purchasing power of wages.
and by causing unexpected changes in
the level of prices gave rise to extraor-
binary speculation, increased the Sc
verify OF commercial crises, aud placed
the small producer at disadvantage
with the large operator. For II years
(1862-l 1879 the government paper was
falsitied promise, and our standard
was based on this lie. Trade and in
dustry became speculative. Men of
large wealth can take care of them
selves but men of small means should
be protected from the evils arising from
snch uncertainty of standard.
Ii the demand obligations Of the gov
eminent are used as money, reserves
must always be kept on hand to redeem
them. They are not therefore loan
without interest; and the expense OF
keeping up these reserves has made the
paper money very great burden to the
taxpayer by an increase OF the pubic
debt. These gold reserves are neces.
sary, unless the government permits It's
notes to go to protest. The mere credit
of the United States behind its notes is
too vague q thing, its power to tax Is
too remote. to provide cash on hand for
instant use. So far as expense is con-
cerned, this debt could have been more
easily borne by changing it into low in
terest- bearing onds.
For these and other reasons the COM
mission strongly urge the government
to Withdrew it's demand obligations now
used as money. decline to provide gold
for exporters. and put the burden and
expense of maintaining a redeemable
paper circulation upon the banks. In