The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-10-16
THE HANNA COMMISSION BILL,
The FalIaCu and Fraud, the Deceit and False
PretenSe of the Notorious Measure.

The PAPER money Win Wnlcn the I1ahh"
monetary commission proposes to furnish
the country in lieu Of the greenbacks. co.n
certificates and gold certificates OF tho
government OF the United states-which
constitute its paper money directly redecm-
ablo In gold--is provided for by section Is
of the bill, and is known as
National bank notes. 1t Is. however, |
very different currency from
what now goes by the same name. The |
present National bank notee are secured |
by deposit with the government OF 500
OF United States bonds for every $50 Of Ma |
uonal bank notes Issued. The monetary |
commission proposal is that for the first
five years the banks shall deposit s25 OF
bonds for each 500 of notes allowed to be !
issued. but after the first five years the
amount OF bonds deposited is TO he de-
creased fifth OF the original amount.
90 that in ten years there will be no bones
whatever on deposit to secure the notes,
nor Will there be any other security on de-
post with the government for their pay
ment except a guaranty fund OF i4r cent
cash and redemption fund OF the same
amount. The avowed object II this plan
Is 10 do away with any deposlt with the
government of bonds or other secLritts TO
insure the payment of the National bank
notes. and substitute In its place as securi-
ty for the notes the assets OF .ho banks
IN their own possession. The government
Is In no way responsible for toe payment
OF any OF the proposed National bank notes,
and merely acts as trustee OF the guaranty
fund which is to be maintained by the
banks.
No opponent OF the present National
banking system has ever questioned that
the National bank notes we're safe curren-
cy The system has been objected 10 az
expensive, as favoring the banker, as Civ
ing the banks control Of the amount OF cir
culaton Of the country and for some other
reasons. but never on the ground OF lack
of security for their notes. Everybody
knew that with 800 OF United States bonds
deposited 10 secure every 800 OF National
bank notes the credit OF the United States
government Is the real security for the
National hank notes, Just as fully as 1t Is
the real security for the greenbacks. But
the COMMISSIONS plan ia to withdraw the
credit OF the government entirely from any
kind OF paper money that Is rcdeemablo in
gold. and thereby relieve It OF the burden
OF maintaining such money on the gold
standard. II the government does not
maintain It, who Will? The monetary com
mission does nor assert that the gold stand
ara VIII maintain Itself. II appears to recog-
nise In hazy way that II credit money ID
maintained on gold standard somebody. or
some power. must maintain it, There is n
general Impression that the intention of
the currency reformors IL TO put the burie n
OF maintaining the gold standard on III,
National banks and yet the commissio, II
ib Noiumlnous report OF 600 pages makes no
declaration TO that effect. You will fin,
on page 32 the statement:
III all the money OF the country L, cor
vertible at par into gold there may the,
DC Whatever, ana as much, of the repre-
sentative forms Of currency az the con
venienco of the people may require.
NO PROVISION FOR REDEMPTION
VAN some restrictions that is true. bu
convertible at par into gold" means nav
able or redeemable at par in gold on do
mand. You Will find a CHAPTER image
1859 devoted TO the consideration q
now inc banks might secure gold 10 main
tam iheir reserves, but no pretense tina
they are compelled so TO do. You will fin
AZ page $50 the statement that with tn
ultimate retirement of the United State
notes and treasury notes contemplated /
the recommendations OF the commission
ana the dispersion OF the greater part ,
our silver currency in the form OF coin an
certificates Of small denominations In as
tual use as the large change OF the cour
Try, the only kind OF money lett for ban
reserves Will be gold" But the assumI
ton OF the dispersion" OF silver and silly,
certificates DIS made without suggesting al
foundaion for II. When we turn TO IL
bill itself We note these faots:
l. The bill opens With declaration
the gold standard. and thst all obligation
Tor the Payment OF money shall be PEI
formed In conformity with the standard
bU. reserves the fun legal tender quail
for silver and United States paper mon,
a. at present. tSections | and o.
= me bill does not require that any bar
shall keep dollar OF its reserve in goi
but provides that the banks shall Ike,
ut least ''one-fourth" OF tholr reserves
coin Of the United States" (Section 3;
3, The bal does not require any bank
redeem its own notes. or any other noses.
gold unless from the redemption fun
which is required 10 be kept in gold Use
ton 6s), though the provision as to tn
Is that the notes shall, DO redeemed
lawful money (section 3lJ or from 4
guarsnty fund, which Is required to
kept in gold. but only to be used in case
bank has refused to pay its notes ION d
mand in lawful money" tSection Isl.
These are the provisions OF the ideal p
OF the monetary commission. They a
apparently formulated to prevent any G
being made on the banks for gold in r
dempulon OF notes. II seems TO have Q
CURED TO the committee on banking n
currency that this feature OF the theory
the experts" would not do. and in the b
reported BY the committee provision
mrlc that each bank shall keep part
Its reserves In gold. and shall redeem
gold, on presentation at Its office, I
notes issued by 1t OF whatever descriptis
but not the notes Of any kind ISSUED