Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1898-12-29
CURRENCY REFORM
Report of Committee on Banking and
Currency Read Before American
Economic Convention.
GOLD STANDARD
Need of Increased Banking Facilities il
Country Districts Small and Independ-
ent Banks Not Favored Congress
Requested to Act.

| h6quoSItu LO hCG.
New Haven, Conn, Dec. 29.-At the
session of the American Economic con
vention held today the report of the
special committee on banking and cur
rency, consisting of Professor F. M
Taylor of the University of Michigan
Professor F. w. Tausig, of Harvard
Professor j. w. jerks, of Cornell uni.
versity; Professor Sidney Sherwood, OF
Johns Hopkins university, and Profes-
sor David Kinley, of the University OF
Illinois, was presented. The report is
as follows
/ Despite the fact that much improve.
ment has taken place within two OF
three years, there still exists a rea
need for monetary and banking reform
| in the United States. The standard OF
| value upon which the whole system
| rests is by no means as secure as il
should be. The circulating note system
is still greatly lacking in elasticity. Ad
equate banking facilities for newer, OF
more backward, districts are still
wanting. In the system, as whole
there is a notable lack of unity and or
ganization
Under existing conditions the only
wise and consistent policy for the Unit
ed States is the frank recognition of the
fact that the actual monetary standard
ic for
be, gold, and the adoption of legisla-
ton which shall insure the entire sta
bility of that standard, until such time
as the nation may have decided to es-
tablish some other. Assent to this
statement does not commit any one to
the position that the gold standard is,
abstractly considered, the most desir-
able one. AS is well known, a large
number of economists hold to the oppo-
site opinion, but, as is also well known,
the particular substitute which such
economists favor, i. e., international BIZ
metallism, is at present and for long
time will be, out Of the question. In
consequence, the precise form which
the question of standards now takes in
the United States is as to whether the
currency shall rest on gold basis or
on a silver or paper basis. This stat
ed, it can have, to the majority of econ
omsts, but one solution. Under exist
ing conditions, the gold standard is, for
the United States, the best available.
This being the case, it is the duty of
the nation to render that standard as
stable as possible and to remove all un-
certainty as to it's maintenance and it's
easy working; for uncertainty as to the
basis of currency must always be a
menace to prosperity.
Whatever decision may be reached
with reference to the much disputed
question as to whether the United
States legal tender notes shall continue
to hold their place as part of the paper
currency of the country, it is certain
that the maintenance of some 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 Sc
curity of the issue shall be in no wise
impaired.
'"There is a real need for increased
banking and currency facilities in the
newer and more backward parts of the
country, and legislation could do some
thing towards satisfying this need. In
the Judgment of your committee, the
most effective as well as the safest ex-
pedient for accomplishing this object is
some system of branch banking similar
to those in vogue in Canada, Scotland,
and other countries. Under such sys-
tenn, banking facilities can be furnished
to communities too small to support
even the smallest independent bank OF
issue; and capital can be most cheaply
and easily transferred from districts
over-supplied to those needing it;
while, at the same time, the dangers OF
fraud or mismanagement incident to al
banking are far less serious than under
a system of small Independent banks
There are doubtless objections to the
plan; but the experience of other coun.
tries has shown that they are not OF
great moment.
| What is most needed at this juno
| ture is disposition on the part of thu
friends of reform to sink individua
preferences as to details and to insis
that congress shall enact such legisla
ton as it shall be possible to agree up
on. Undoubtedly, there is room in thi
matter of currency reform for homes
differences of opinion, but such de
gree of persistence in ones opinion a
makes working compromise impossi
BILE has no justification in monetar!
principles or in the conditions prevail
ing in the United States. 1t is safe t.
say that, of the five or six currency bill
that during the last II months, hav'
been in any serious sense before tn
country, the passage Of any one woult
have resulted in great improvement
and would have measurably satisfied