The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1898-01-04
1T PRESENTS ITS PLAN.
Main Points in the Report of the
Monetary Commission.
Presents What 1t Considers to BE De-
fects in Our Present Currency
System, and Suggests How 1t
May Be Reformed.

Washington, Jan. 3.-The following
is an abstract of the report of the none
tary commission appointed under au-
thority of the convention of business
men held in Indianapolis last January
which has just been made public:
1t retains practically unchanged the ex-
listing metallic money. The 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 the standard shall be.
For the steady employment of labor, fac
tories and mines must be constantly op-
Grated; 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 I'M
certainty as to the meaning of ''coin" IN it's
obligations, thereby saving the taxpayer
by the ability to borrow at lower rate of
interest.
Place for Silver.
No attempt is made to remove the exist
Ing silver dollars, nor to change their
legal-teLder quality; the contrary, a
place is provided for them in the circulation
by forbidding the issue of any paper money
other than silver certificates in denomina-
tons below ten dollars. The silver cur
rency, which will be in the hands of the
as is now provided by law, and this should
be done by requiring the treasury to give
gold for a silver dollar on demand Con-
sequently, when it is known that a silver
dollar can be exchanged fer gold it will
circulate freely Tin the form of certifi-
cates), and our metallic money, without be-
ing diminished, will be unified on certain
basis. And. as all this silver currency will
be needed to meet the demands for large
change (When other paper below ten dol
lars is retired), it will not be presented for
redemption at the treasury, and it will
create no strain on the gold reserves. But
20 more silver dollars should be coined.
Reserve Too Slender.
The commission contend that the ten diff
ferent kinds of money now in use create an
anomalous and confusing situation. More
over, the whole fabric rests on too slen-
der 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
which the business operations of the coun-
try rest. Everything which, by experience,
creates uncertainty and hurts trade
binders prosperity and should be removed
Hence the fiscal affairs Of the treasury re-
lating to the receipt and disbursement of
public revenues should be entirely sep
arated from the monetary functions deal
ing with the exchange and redemption of
the currency. by SSIaDllSnlQS a separate
division of issue and redemption in the
treasury, it will be impossible to take away
funds set apart for the protection of our
monetary system and use them for current
expenditures.
Fraught with Danger.
Above all, it is regarded as dangerous to
maintain the present practice of using gov
eminent 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 functions of the state,
forms of debt due on demand were used as
money not as the result of elaboration but
of emergercx. conditions. They -1ere- is.
sued exactfyM64cause there were no re-
sources in the treasury; and so they de-
preciated, drove out gold, furnished
1uctuating standard, increased the nation
al debt enormously, caused a change in
prices whenever the credit of the paper
standard f1uctuateO, reduced the purchas-
ing power of wages, and by causing I'M
expected changes in the level of prices
gave rise to extraordinary speculation in
creased the severity Of commercial crises,
and placed the small producer at a disad-
vantage with the large operator For II
years QS62-1S79) the government paper was
a falsified promise, and our standard was
based on this lie. Trade and industry be-
came speculative. Men of large wealth can
take care of themselves; but men of small
means should be protected from the evils
arising from such uncertainty of the stand
ard
If the demand obligations of the govern
ment are used as money, reserves must al
ways be kept on hand to redeem them.
They are not therefore a loan without in
terest; and the expense of keeping up
these reserves has made the paper money
very great burden to the taxpayer by
an increase of the public debt. These gold
reserves are necessary, unless the gov
eminent permits its notes to go to pro-
test The mere credit of the United States
behind it's notes is too vague thing, its
power to tax is too remote, to provide cash
on hand for instant use. So far as expense
is concerned, this debt could have been
more easily borne by changing 1t into
low interest-bearing bonds.
Should Be Withdrawn.
For these and other reasons the com
mission strongly urge the government tC
withdraw its demand obligations now used
as money, decline to provide gold for ex-
porters, and put the burden and expense OF
maintaining a redeemable paper circula
ton upon the banks. In order to meet the
demand obligations, the present reserves
of gold in the treasury furnish beginning
to be set aside in the division of issue ant
redemption: and to meet possible contin
gencies the secretary Of the treasury i!
authorized to sell bonds whenever the re
serves need replenishment. In this way
or from surplus revenue, the demand obi
cations Chat is, United States notes anC
treasury notes OF lcSOJ Can ne < duudlIy IS
moved, and the cost to the country can b'
reduced while this process will also giv'
the inestimable advantage of ceasing t
use demand debts as money. Of simplify
ing our currency, and of adding to conf
dence in the certainty of our standard
By the plan of the commission, government
Daper is withdrawn in the first five year
only as fast as the banking currency eX
hands, so that contractio cannot possibl.
take place: if United States notes are can
celed their place will be taken by the gol
maid out for them, or by the expansion o
hank notes (under the new system pro
posed: and in the following five year
all the remaining United States notes ar
10 be retired.
Bank Note Is Landed.
The demand obligations of the United
States were put forth solely because Their
were no funds in the treasury to redeem
them The notes were only evidence tina
property had been received and used u
for services or supplies or public building