New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-30
THE ECONOMIC CONVENTION
PLAN FOR CURRENCY REfoNM
PORTED By A SPECIAL COMMIT iEN


ELECTED AT THE FINAL DAYS sEssioN'
,,anon ma. 90 AT the closing days session
Of the American Economic Association cohV.li''on
in this CITY the report OF The Special Commute y"
Ranking and Currency presented Inc 49,
mittee consisted OF Professor r M i"',o' ,ors
University OF Michigan. chairman, anu ~ co.,
F. w Taussig of Harvard; J, W. JehKs, u onA
nell; Sidney Sherwood. Of Johns iiopA'',r -, 90.
David Knley Of the University Oh i''"0'''
sential part OF the report folo"S - ., cor
Under existing conditions. the ony VS. tbe frank
sstent policy for the Unlteu ~ actual monetary
STANDARD is now and for some time 10 eH shai in
gold and the adopo3n OF KAT standard until such
time az the Nation may have ueo ,nrt docs not
o,nrn ny one 70 the position that the gold s.anu
ard is abstractly considered, the I no ~ ncono-
one As il well known. large number OF e, oiso
mis,s hoId 10 The opposite opinion. But as ~ ns
we'll known. tho particular suD9'.'ut biTne,aillsn-
economists favor-i e. international Dine, , ~
Is at present and for long tune Will Wv, o form
the question In conssguednGed t now takes in the
I-nited States Is az to whether the currency ts
rest on gold basis or on silver or Rupe 81, econ,
omists but one solution Under existing n best
the gold standard is for the United tSe duty Of
available. This being the case, ~ - .'' s,abie AZ
the Nation to render that standard as s,aD -, its
nmantcnonse and It's easy working for uncertainty
as 10 the basis of the currency must Away 10
menace to prosperity
TO MAKE THE STANDARD SECURE
With respect to the means through which III
creased stability for the standard shall be msureu'
II IS hardly 10 be doubted that much WON" We
gained by it's explicit definition In terms Oh GU
still more Important would be the enacuhs 81 SUI
legislation as shall insure that the task o, ,nain
tanning the standard or IN M, QUO od Of other forms
of currency, shall DE efficiently perloImcu, aeonrd
with the commonly received opinion that under
normal conditions. the task IN question Ds,i,ntion
advanta geously be devolved upon some ~ aIsn
or inSti "A
agreed though perhaps less positively ena ,ba
United states this same solution of the problem si
on the whole. best IT. however tnis pnh S thn
Standard OF value is still rest upon the Treasury
everythng calculated TO make that task mould be
specially organized with reference 70 the uuy tu'
tonal powers as are necessary to insure its fitness
for the work in hand. Among the various CHa heo
objects YOUR committee believe the most important
to be modification OF the exlsung ~ st ~
mannecment of the monetary system of the coun-
Try shall be- separated from those functions when
no well also TO find place for silver where it Will
cause least trouble by retiring all notes under So
Temporarily notes which have been once redeemed.
BANK ISSUES.
| Whatever decision may be reached with reference
TO the much-disputed question as TO whether United
States legal-tender notes shall continue TO hold
| their place part OF the paper currency OF the
| certain
system Of bank issues will be Indispensable. This
| system should without doubt. be under Federal
| control and should take such form as to insure
much greater elasticity than exists In the present
| system provided always that the security OF the
| issue shall be in noWise impaired. , < attain,
! AS respects the method 10 be employed for attain
ing this needed Increase In elasticity it is believe
that the really successful one must Involve issulg
portion Of the circulation upon ORDINARY Dank L
ing assets. The chief reason for this is that s1ch
are universally and readily available when eNpan T.
! sion Is needed The superiority of such system ~
| close correspondence between the amount OF such
in the possession OF the banks and the need
like the need for money. yary III the secrtv of
system is supplemented with the device Of a safety
fund or with one or more OF the yar2"S 9ner rsd
that nothing can make this system really saie az
least Cor the banks b as IN whch
those notes based remain In the custody OF tne
& 9 Saie. t N 2R2estUn Fh only
through clearing house associations. when are -
ateral by which tho notes secured just as they
do in the case Of osn cerhcateS ana c a. 'r
National bank notes.
It may however prove u In sch event
The existing system OF based on United states
bonds should be amended as to give to as large arg
| visions OF the law ~ 1882 which limits the amour,
rd HIIs resse within six months after retire
ment should be repealed To secure In some degree
hI. "a elasticity il would be well TO raise the rato
OF notes TO bonds deposited and to over tt TAX
ar better still 10 levy Il on capital and surplus.
In order still further enlist the self-lnterest OF
the banks especially on behalf OF tne pronpi,, re-
trement OF redundant notes. We should be inclinei
10 prohibit any bank from paying ON the notes Oh
any other banks except 10 the issner or 10 .he re-
denntlon agency AS respects making easier the
nrocesses OF expansion and contraction. some gain
wouIa nrobahly result from requiring the Controller
TO keep on hand supply or notes IN pank, ana
still more from increase In the facilities FOR re-
Th Other papers read at the morning session
nero nv professor John r. Clark. OF Columbia. on
dynamic Standards Of Wages and interest ana
nv Professor Charles A. futile. OF Wabash College.
~ "a Fundamental Error Of the Classical Econo-
mists." ,,or,e rr r,crrn
The Committee on Nominations at the afternoon
seseion brought I'm the following list of officers.
uhicb the convention ratified President Professor
Arthur r Hadley Of Yale -presidents-Stuart
Wood of Philadelphia; Professor David Kiney.
University of Illinois and Professor w Il. Ripley.
Mncsachtsetts Institute of Technology secretary.
Professor w alter F. Wilcox, Of Cornell University.
University and Publication Committee-Profess0r
+ W Taussig. OF Harvard. chairman; Davis K.
Dewey Willard {. Fisher. W. \. Scott, sidney
Sherwood and f. NJ Taylor.
The afternoon session WAS given up to the con-
sieration OF the following papers: The Present
Study OF Practical Labor Problems in France by
DR.. ". f. Wilonghby. Of the United states De
partment of Labor; Municipal TAXATION as a
w Curtis OF the city Bank. New-Haven ana
THE Nature OF Municipal Franchises. by DR.:
Max West. OF the United states Department or
Agriculture.
AMERICAN HISTORICAL ASSOCIATION.