Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-01-07
Our Financial System.

tary CommIssIon---a Plan to Maintain
Reform Our Whole Banking and FL
| nen"'-t - SEEM.
The report of the monetary commission,
of which ex-senator Edmunds is chairman,
| has been sent out this week. This report
contains the plan of currency reform pro-
posed by the commission, together with a
discussion of the subject. The monetary
commission originated in indianapolis, the
initial steps which resulted in its formation
having been taken very soon after the
presidential election in 1896 Jan. II,
| 1897, a great monetary convention was
held in Indianapolis, to which were invited
delegates from boards of trade and similar
organizations of all cities in the country of
5000 population or over. Some $50 at
tended. 1t was determined that commits
sion should be appointed which should be
so composed as to have its opinion carry
weight with all the business interests of the
country. 1t was deemed advisable to get
the authority of Congress for this action.
President McKinley's message of last July
called attention to it, and a measure was
promptly passed, Then the executive
committee Of the indianapolis convention
named l / men to investigate and draw up
plan for improving the currency.
The commission was made up as follows:
Ex-senator George F. Edmunds of Yer
mont chairman; Charles 5. Fairchild of
New York, ,-Whs-was MI Cleveland's first
secretary of the treasury; Prof. j. Law
renee Laughlin of Chicago university, an
eminent .authority on money matters, was
chosen as the one representative of the
professional students; G. Stuart Patter-
son, an able writer on finances, and a prac-
tical fnancier of Philadelphia. These four
| represented the East. Then there was
Stuyvesant Fish, nominaly of New York,
| but at the head of the Illinois Central rail-
way, with many southern branches; I. g.
Bush of the Mobile IL birmingham rail
road; Col. George +. Leighton of St.
| Louis, vice chairman of the commission;
| J. w. Fries of North Carolina, and w. b.
Bean Of ST. Paul two representative mer-
chants. Judge Robert 5. Taylor Of Indi-
ana, and Louis A. Garnett of San Fran
cisco, whose business relations made him
familiar with coinage matters, completed
the commission.
The entire report of the commission,
with its accompanying documents, is of
great length. The essential points of the
argument and plan submitted are the fol-
lowing:
The most serious evil of our present sit
uation is the threatened degradation Of our
monetary standard.
The concurring habits of individual
mankind fix the standard by which TO
measure the value of labor and property.
Governments cannot try to change this
standard without making mischief.
The standard thus fixed is now gold.
This is a fact of civilization.
Government, if it serves the people
well, accepts this fact and records II in
law.
As an immediate means toward this end,
we recommend that it shall be provided by
law that all obligations of the United
States, existing and future, shall be pay
able in gold except when otherwise eX-
pressly provided. By the wise and cour-
ageous action of its executive officers the
government has upheld that standard by
paying its obligations 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 'coinn in the oblIga-
tions Of the government, we shall not have
an established gold standard in the full
sense of those words.
The first purpose of the commissions
plan is TO establish and preserve popular
confidence in the continued maintenance
of the gold standard, and to this end the
plan provides for an explicit legislative
definition OF the gold standard and pledge
that 1t will be maintained; a requirement
that all obligations, public and private, un-
less otherwise stipulated in the contract,
shall be payable in conformity with that
standard, and the adoption of plan for
the gradual retirement of the outstanding
note issues of the government.
The next great purpose of the plan is to
retire the demand obligations of the gov
ernment, and to this end 1t is provided
that the note Issuing and redeeming op-
erations of the treasury shall be separated
from its ordinary fiscal operations by the
creation of a division of issue and re-
demption. The reserve is to be maintained
from revenue when adequate; from the
sale of bonds when necessary. Provision
is made for the gradual retirement of de-
mand obligations, and no note once paid is
TO be reissued except in exchange for gold
or for the purchase of United States bonds
for the benefit of the division of issue and
} redemption.
The third great purpose of the plan is
: gradually to change the banking system SC
as to render it more elastic and better TO
T distribute loanable capital while maintain
ing the security of note issues. Ultimate
l ly, under the plan, bank note issues would
not be based upon the deposit of govern
l ment bonds but upon those readily con
vertible assets which represent the eX
changeable wealth of the country in its
natural products and manufactured goods
Introduced In Congress.
! Representative Overstreet of Indiana
+ has introduced in the House a cOmprehen
sive bill for carrying out the plan of the
monetary commission for the reform of the
currency. The bill was referred by Speak
er Reed to the committee on banking, ant
Chairman Walker has arranged to give
hearings on Jan. II to ex-senator Ed
t munds, the chairman of the commission
e and perhaps to other members. The bill
e contains Al sections, and embodies in leg
t islative form every feature of the recon-
Y mendations of the commission.