New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-03
CURRENCY REFORM.
REPORT OF THE MONETARY CoMsfIS-
SION


URY DEPARTMENT FOR THE RE
pEMprroS OF NOTES AND SILVER
AND THE GRADUAL RETIREMENT
OF GOVERNMENT NOTES AND
THE suBsTiTuTroS OF
Rank CURRENCY
Washington Jan. 2.-The preliminary report
OF the Monetary Commission. containing the plan
of currency reform proposed by n. together with
n fun discussion OF the subject and a mass of
statistics and other Information. has been sent
out by the Executive Committee OF the Indian
apolis Convention. Following are the main
points OF the argument and the plan:
THE STANDARD.
The most serious evil OF our presen, situation 10
the threatened degradation OF our monetary stand.
ard
In such country as ours the legal monetary
standard Il whatever majority. or plurality.
n may be- ~ the voters say n shall b. 7, r.
therefore of the utmost importance that tho stand
ard shall not only be distinctly declared IN tho
law. but clearly fixed IN ihe minds ~ The people
as the FIRST and Indispensable element % a sound
monetary system All history g. evidence that the
people who suffer most from "A degradation % ths
standard are not the rich and powerful but fhs
poor and helpless. Compared with this danger
present money aro relatively only inconveniences
The 6rs, need OF the situation is 70 fortlfy the
standard
There some considerations as 90 tho stanf.
ard which ought 20 commend themselves 90 'hs
judgment ~ the country There be
standard OF value. The standard must have Q
market value a commodity Independently of any
governmental Nat and OF iesal-tcnder lawf.
must be durable Il must be homogeneous n must
have maximum of value propor'loned % its
bulk Il must have. as commodity. a. stable
market value As possible ana IN order % 49,
cure the stability - tha, market value the rcla-
,ion between ts supply and demand must be as
constant as possible Gold alone fulnl, these
conditions Tho civilized wo~d hes, therefore
determined that the standard shall be gold No
government. however powerful can IN fact reverse
that determination. or. without injury 10 the IN
terests ~ all ~ people attempt 20 establish any
other standard OF value.
There is n clear distinction between the functions
OF money as q standard Of value ard ~ medium
OF exchange While that money which IL the stand
ard Of value Will always serve also as medium ~
exchange yet other forms OF currency 81 inferior
market value can IN no sense be a satisfactory
standard and can be a suitable medium OF exchange
only when their conver,lbnity ~ par into the stand
ard money is assured Any possible currency is.
therefore. OF one OF two kinds. The first Kind 10
that which has been adopted as the standard %
value. The second kind Is that which IL. without
ceivable par. because convertible q, par into
the standard money. To-day gold Is the only cur
rency OF the FIRST kind. United States notes. ma
uonal bank notes silver dollars. subsidiary silver
and minor coins are currency of The ssconi kind.
The face value OF the silver dollars. the subsidiary
silver and the minor coins more less largely cs-
ceeds their bullion value. and they diner from the
note issues only IN the fact that the material OF
which they made hn- some market value as
bullion. Under modern conditions Of business. pur-
chases. sales. loans. the discharge Of debts and
even payments Of wages are effected IN great part
by drafts cheeks transfers Of credits While the
work which the money which Is the standard. act
ually performs IN the exchanges OF the country n
! relatively small yet every OF those exchanges
s based on tha standard II all the money of the
country II convertible az par into gold there may
then be whatever, and as much OF The representa-
Tive forms Of currency the convenience of the
people may require
on the other hand N The standard os value be
lowered there necessarily follows a loss OF public
confidence. a essened use OF credit and of credit
forms Of currency. and a consequent diminuiion OF
the effectiveness Of the currency
The gold standard. therefore does not mean
gold monomeiallism. and II necessarily results.
not IN contraction. but In the greatest possible
expansion OF the currency within the bounds OF
safety.
As gold derives no value from any iegai-'ender
law nor any value from coinage a, the mint be-
y0nd "ihe ascertanment that i;s weight and purity
are what the law requires" and the certifying
by the Governments stamp that Il possesses those
qualities II IL. and II ought 70 continue 20 be. I'D
mltied 10 free coinage on the other hand. silver.
/ nickel and copper should be coined only upon COW
| ornment account into coins OF limited legal-tenfer
quality. should be issued from the mint only In
exchange for gold at par. and should be rex
changeable at the Treasury IN convenient multi
pies for gold coin al par. Under this system there
could be no arbitrary contraction expansion Of
the coin currency. nor any tampering with the
standard Of value. and the people would then carry
20 their credit In the ledger Of the Treasury De-
partment the profits upon the coinage OF silver.
nickel and copper.
Many Of fellow citizens have hoped In all sim
certify that the problem OF the standard would be
solved by international bimetallsm. An earnest
effort has been made to realize that hope bu, IL
mus, now be abandoned The only alternatives,
therefore. the continued maintenance Of the
l.ting gold standard. or the adoption OF the silver
standard. II the latter alternative be taken the
obligations OF the United States. OF the States Of all
municipalities. OF all private corporations. and OF
all individuals. the receipts OF income from every
source the proceeds OF policies OF Insurance. the
deposits in banks and saving funds. and the wages
OF labor will then be payable In a debasei and de-
preciated currency, and individual and corporats
bankruptcy and. wors, o, all. National dishonor,
will follow II tho former alternative be taken and
the necessary means be adopted TO secure the
stability of The gold standard, tho credit Of tho
country will be established the National deb, can
be refunded at lower interest rates. the surplus
capital OF the world will here TO ind prontsbls
Investment and our country viii enjoy the pros
pcrty that follows currency system based upon
a stable standard OF value
The means necessary 10 establish and preserve
popular confidence IN the continued maintenance OF
the gold standard are;
Firs,-An explicit legislative definition Of the gold
standard and pledge ,ha, n will be maintained.
second--A requirement that all obligations public
and private. unless otherwise stipulated IN the con-
tract, shall be payable in conformity With that
standard
Third-Thc adoption Of e plan for the gradual re-
tirement OF the outstanding note issues OF the Gov
ernment.
As the gold deposited for certificates cannot be
used by the Government, and as the issue OF gold
certificates is Of no advantage to the Government