Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-01-04
Report Of the Monetary Commission.

In brief the report Of the monetary
commission faVors the substitution OF
national bank notes for treasury GER
tificates by a gradual process and the
ultimate permission for banks to issue
notes against their total resources, III
stead of on bond deposits as now.
The commission regards the need Of =
law, declaring that all the present ami
future obligations of the United States
shall be paid in gold, as imperative. 1t
would have a separate division in the
treasury for issue and redemption OF
money. 1t would have no more silver
dollars coined but would provide use
for what we have by withdrawing sill
Yer certificates over So and all other
notes under SO.
Regarding the greenbacks, which it
would have wholly Withdrawn, th1
commission says among other ,aiu9s:
"A paper currency issued by the gov
nme and circulating year after
year without redemption educates the
people in false notions concerning
money. Such a currency also lacks the
important quality Of automatic adapt
ability the varying demands of bust
ness. More important than this is the
fact that such a currency outs upon
the government a burden in the main
tenance of the credit of all he financial
institutions of the country.'
The report further states: The chief
difference of he proposed from In"
existing system of hank notes is that
it gradually does way with the r.
quirement that there shall he a deposii
Of bonds with the government as a
condition for the issuance thereof. As
now the notes are to be n first lien upon
all the Of the banks. includ-
ing the stockholders liabilities. This
change is necessary because Of The
scarcity OF United States bonds. ana
the ATTEMPT to substitute other bonds
would lead to many evils. The chang
is wise because it permits the issuance
If notes in the way and at tke time
When and for the puposc for winch
they would be issued under natural
conditions if no law prevented. Such q
system would more perfectly than any
other give the country a circulating
medium. 1t would readily and quickly
adjust itself from season to season TO
meet the wants Of the business Of the
country requiring bank notes for its
convenient transaction.
Under the present system the prob
lem presented to a bank when its us
TONERS call for currency is not the
amount Of it's own assets, but il
ability and desire to make an invest
ment in something quite apart from its
usual business as a bank, in order that
it MAJ be in a position 10 provide q
man who wishes to move property on
employ labor with the tools most CON
Venient at the time for his purpose.
wv w - ! i''N ''N' 49,
not fail TO be safe because, being based
upon all the of all the banks
issuing them, they are based upon The
whole business of the country. ami
that business is the thing WhiCh gives
life and value to all securities. govern
ment. municipal. railway and individ-
,~t -I,;r,.s-,. Ms, COMMUNICATION tt-,,,tf
have the one percent. tax on circulation
repealed and be taxed one-eighth Of
one per cent. upon its franchises as
measured by the amount of its capital.
surplus and undivided profits. The
total issues Of any national bank shall
not exceed the amount of its paid up
and unimpaired capital. exclusive of
50 much thereof as is invested in
real estate. All such notes shall he of
uniform design and quality and shall
be made a first lien upon all the assets
of the issuing bank, including the per
sonal liability of its stockholders. No
such notes shall be of less denomina-
ton than $40. 1t is not proposed to
change Immediately from the present
to the new system. Up to an alnoun
equal to % per cent. of the capital stool;
Of the bank, notes issued by it shall
not exceed the value of United States
bonds, reduced by computation to Il
three per cent. basis. Additional notes
may be issued without further deposit
of bonds. Five years after the pas
sage of the proposed act. the amount #
bonds required to be deposited before
issuing notes in excess thereof shall be
reduced each year by one-fifth of the
% per cent. of capital above mentioned
an thereafter any bank may al any
time Withdraw any bonds deposited in
excess of the requirements. Every
bank shall pay a tax at the rate Of two
per cent. per annum, payable monthly
upon the amount of its notes oui-