Worcester morning daily spy. (Worcester, Mass.) 1888-1898, 1898-01-03
CURE CY REFORM
Continued From First Page,

form of bank notes. The bank note is
only one form in which he to whom
credit is given will use that credit. He
can use it equally well for most pur-
poses, if the loan is placed to the credit
of his account by the bank making the
loan to him, or by some other bank or
by private person.
The existing tax of per cent per an
mum on circulation is repealed. In it's
place taxation Of capital, surplus and
undivided profits is provided. The is
sue of circulating notes is only one
form in which a bank expresses its de-
mandI liability. The other form, de
posits. is, under the development of
modern banking operations, of vastly
greater Importance and the one which
in cities and highly organized CONNER
cial communities is most used In Octo-
Der, 1897, the country banks issued
more than 72 per cent of all notes is
sued. The reserve banks, except those of
the central reserve cities, New York,
Chicago and st. Louis, issued more
than IS per cent; New York more
than 8 per cent, and Chicago and st.
Louis together, about one-half of / per
cent. Surplus and undivided profits and
capital show the profits and property
Of banks, and these are certainly more
legitimate objects of taxation than the
mere instruments which banks may be
called upon by their customers to issue
to serve chiefly the convenience of those
customers. This tax makes as equitable
an apportionment Of the expenses of
the system as can be devised.
PLAN OF CURRENCY REFORM.
l. The existing gold standard shall be
maintained, and to this end the stand
ard unit Of value shall continue as now,
to consist of 25.S grains of gold nine
tenths fine, or 1922 grains of pure gold
as now represented by the one-tenth
part of the eagle. AN obligations for
the payment of money shall be per-
formed in conformity to the standard
aforesaid, out this provision shall not
be deemed to affect the present legal
tender quality of the silver coinage of
the United States or of its paper cur
rency having the quality of legal tender.
All obligations of the United States for
the payment of money now existing or
hereafter entered into shall, unless
otherwise expressly provided, be deemed
and held to be payable in gold coin of
the United States, as defined in the
standard aforesaid.
2. On substance.) Gold coinage as
now.
8. No silver dollars shall be hereafter
coined.
4. and 6. On substance) Coinage
and redemption of subsidiary and minor
coins as now.
T. There shall be created a separate
division in the treasury department, TO
be known as the division of issue and
redemption, under the charge of an as
sistant treasurer of the United States,
who shall be appointed by the president
by and with the advice and consent of
the senate.
8. To this division shall be committed
all functions Of the treasury department
pertaining to the issue and redemption
of notes or certificates and to the ex-
change of coins, and this division shall
have the custody Of the guarantee and
redemption funds of the national banks
and shall conduct an the operations OF
redeeming national bank notes as pre-
scribed by law, and to this division shall.
be transferred all gold coin held against
outstanding gold certificates all silver
dollars held against outstanding silver
certificates, an United States notes held
against outstanding currency certificates
and all silver dollars and silver bullion
held against outstanding treasury notes
of 1890 and all subsidiary and minol
coins needed for the issue and exchange
of such coins and the funds deposited
with the treasury for the liquidation OIL
national bank notes. All accounts relat'
ing to the business of this division shall
be kept entirely apart and distinct from
those of the fiscal departments of the
treasury, and the accounts relating tc
the national banks shall be separate anC
apart from all other accounts.
9. A reserve shall be established ir
this division by the transfer to it by the
treasurer of the United States from the
general funds of the treasury, of an
amount Of gold in coin and bullion
equal to 25 per cent of the aggregate
amount of both the United States notes
and treasury notes issued under the act
Of July IA, $780, outstanding, and a
further sum in gold equal to per cent
of the aggregate amount Of the coinage
of silver dollars. This reserve shall be
held as a common fund and used solely
for the redemption of such notes and In
exchange for such notes and for silver
and subsidiary and minor coins.
10. 1t shall be the duty of the secre-
tary of the treasury to maintain the
gold reserve in the division of issue and
redemption at such sum as shall secure
the certain and immediate redemption
Of all notes and silver dollars presented
and the preservation of public conf
dence, and for this purpose he shall
from time to time, as needed, transfer
from the general fund of the treasury
any surplus revenue not otherwise ap-
propriated, and in addition thereto he
shall be authorized to issue and sell
whenever 1t is in his Judgment neces-
sary for that purpose, bonds of the
United States bearing interest not eX-
ceeding 8 per cent, running 90 years,
but redeemable in gold coin, at the
option of the United States, after
one year, and the proceeds of all
such sales shall be paid into the divi-
sion Of issue and redemption for the
purposes aforesaid.
IL To provide for any temporary
deficiency which may at any time exist
in the fiscal department Of the treasury
of the United States, the secretary OF
the treasury shall be authorized at his
discretion to issue certificates of in
debtedness of the United States, pay
able in from one to five years after
their date, to the bearer, of the denomi-
nations of $50 or multiples thereof, with
interest at a rate not to exceed 3 pei
centum per annum, and to sell and dis.
pose of the same for lawful money al
the treasury department and at the
sub treasures and designated deposi
tories of the United States, and at sucf
post offices as he may select. And such
certificates shall have the like privileges
and exemptions provided in the act tc
authorize the refunding of the nationa
debt. approved July IA, 1870.
70. whenever money is to be Dor
rowed ON the credit of the United State:
the secretary of the treasury shall b.
authorized, instead Of issuing the usua
forms Of engraved bonds upon receiving
lawful money of the United States il
sums of not less than $50 in any single
payment, to cause a record of all sucf
payments to be made in books to b.
kept for that purpose in Washington
and thereafter from time TO time to pay
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