Daily capital journal. (Salem, Or.) 1896-1899, 1898-04-13
An Ubiquitous Measure
All Our Silver to Be FIoated
With Gold Bonds.
Increased Privilege to Issue Money TO Be
Gwen to Banks.
J. A. DJughitt in The Dalles Times
Mountaineer.1

MOuntaineer.1
EmbOldened by their success 50 far
in currency reform the managers Of
the Republican party have submitted
a proposition for finding the currency
Of the Unite5 States in such a shape
that money can be made scarce or
plentiful at the will OF the Wall street
brokers. T Gage bill did not go
qui far enough to suit the brokers,
hence another measure was prepared
that is entitled "a bill to strengthen
the public credit" and is about as
vicious a measure as could have been
conceived by old ShylOck himself.
The principal features Of the bill are
as follows:
"a division Of issue and redemption
is established in the treasury for
which the secretary Of the treasury is
authorized TO set aside the general
cash balance in excess Of $4,000. 900.
This excess on March II, 1s9s, was
SIG, 1882. United States received
by this division for redemption in
gold as to be cancelled aud returned
in proportion as certain substitute
currency is issued. No note redeemed
in gold is to be again paid out except
under exceptional conditions.
National banks are required to as
sumo the current redemption Of
United States demand notes in order
TO obtain circulation based upon their
commercial assests. A new class Of
notes, called national reserve notes. is
to be issued in lieu of legal tender
notes deposited by the banks with the
treasury, and these reserve notes are
to be redeemed upon demand by the
banks out Of the redemption fund
which they are required TO maintain
in gold.
"The basis Of national bank calcu-
lation will eventually be the COM
mercial assets of the banks. This
result will be reached, however, only
after a series Of years. National
banks will continue to be required
during one year after the passage Of
this act to maintain the minimum
amount on the United States bonds
as security for circulation, which is
required by existing law, but they
will be permitted to issue notes to the
face value of these bonds. This bond
deposit may be reduced by one-fourth
annually, beginning one year after
the passage Of the act.
National banks are to be per
mitted to issue current notes upon
their commercial assets to the amount
OF the reserve notes issued to them in
return for deposits of United States
notes. The purpose Of this provision
is to compel the conversion Of United
States notes into reserve notes, as
well as to limit the issues Of currency
upon commercial assets.
"The national currency notes based
upon commercial assets are to be Sc
cured by a bank note guaranty fund
made up by the contribution In gold
coin 5 per cent Of the entire circula-
tion Of the bank.
"The national reserve notes will
continue 10 be legal tender until re
ceived into the treasury from failed
aud liquidatIng banks, when liability
from them will be assumed by the gov
ernment, and they will be redeemed
and cancelled. ProYision is made that
they shall cease TO be required as a
basis OF circulation, when the secre-
tary of the treasury is satisfied that
there is no longer a sufficient amount
available to meet the demands for new
banks and increased circulation.
STANDARD silver dollars are to be
redeemable in gold, but silver certiti-
Gates are redeemable only in standard
silver dollars. The parity OF silver
with gold is secured by gold redemp.
tlon fund, deposited in the division
OF issue and redemption, equal 10 FIVE
per cent OF the amount OF silver
which has been coined"
Comment on this bill is hardly nee
esSary, for il shows upon its face so
many Objectionable features that it
condemns itself. Ii means an iSsu-
ance OF more interest bearing bonds;
the creation OF credit currency that
would be SO flexible that iu could he
contracted just TO suit the whims OF
money lenders, and still of such a
wild cat nature that its value would
always be questioned.