Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-01-03

| Inc pan OF currency reform Is one OF many
that have been put forth, and in most re-
| spects commends itself to the Judgment of
sound financiers The separation from the
Treasury Department Of its issue and re-
the right direction. Th9 retirement of all
government demand obligations must sooner
or later be accomplished. The government
Of he sRer 90 w to
even now more than half fiat. The system
| of banking set forth In the report may not
be the best that is possible, but 1t has the
merit of comparative safety"
Representative Knox.
Representative Knox IF Massachusetts,
| chairman Of the committee on territories.
| said:
1.-The report of the monetary commission
| is most thorough and complete presenta-
ton of the evils of our present system. 1t
would be impossible to discuss the merits
of the remedies proposed upon a hasty eX-
animation. Such an examination, however.
shows certain features which like. Chief
| is the very gradual process by which the
| demand notes of the government are to be
retired. Most Of the plans of currency re-
form commence at the funding of the notes
by the issue Of Understanding bonds. II
the notes are to be retired it should be done
gradually and only as currency which the
people will confidently use is provided to
| take their place. If retired, they should be
paid, not funded. OF course, this cannot be
done except in time of abundant revenue.
when they can be paid from the surplus.
l also like the feature in the proposed bank
ing system which preserves the reserve
against deposits. In most Of the plans for
bank currency issued against deposits
this feature has been lacking. 1 think it's
| lack would result in a decrease IN the
amount Of the deposits which would be re-
ceived by banks, and large amount of
loanable capital would remain in the hands
of the people and not be concentrated and
loaned for productive use. More extended
,nIII6 nh
and thorough consideration"
Senator Marlborough.
Senator Hansbrough of North Dakota
said
$50 far as the report of the commission
pertains to or offers suggestions in behalf
of the regulation of the.currency, there is
much in it that is commendable. There
should be no objection to the recommended
ton with respect to short-term bonds. 1 do
not believe, how ever. that existing condf-
tions warrant the sweeping changes pro-
posed. The first duty of Congress is to pro-
vide for adequate revenue. The outlook in
this regard is encouraging. A liberal sur
plus would be the most effective restorer of
confidence.
THE plan of the commission, if adopted,
would create new and extraordinary de-
| mands for gold, and as gold does not exist
in quantities equal TO such demands Il
scramble for the yellow metal would GER
country passed through an experience that
| makes another gold scramble undesirable.
THE whole argument of the commission,
when shorn of it's platitudes, emphasizes
the great necessity for broader basis for
our currency. This cannot be had out of
the present limited gold supply. 1t can be
secured IN a large measure through an in
ternational rehabilitation Of silver, thus in
creasing the volume of metallic redemption
money fully 100 per cent. The declaration
Of the Bank of England last summer is
strong proof of the wisdom of this course
Our efforts in behalf Of an international
agreement must not be abandoned, the die
tum of the commission to the contrary not
withstanding."
Representative. Mitchell.
Representative John Murray Mitchell of
New York. one of the, members of the
House committee on banking and currency,
said u
Great credit is due to the members OF
the monetary commission for the pains
they have evidently taken to treat the sub
Ject matter of their report in clear, direct
and mastery manner.
This report, if widely disseminated.
| would do great educational work in helping
to remove many Of the ideas of free silver
advocates. o. ]
Il have not had time to examine the pro-
posed bill will SUFFICIENT care to discuss 1t
in detail, and am ;tnxiots to hear IT'S au-
| thors explain their Aeasons for many of its
| provisions, among others the retirement of
greensacks, provided for in sections - and
| 10. -
In my opinion it is matter of the most
vital interest and Importance to the United
states, and therefore to us as a part of the
government and as members of It's great
board of directors, to stop paying our bills
over and over again.
That is what we are doing under the law
OF 1873. which provides that when United
states notes shall have been redeemed in
gold by the treasury these same notes shall
be reisSued by the government.
10 maintain the gold standard in this
present way is as disastrous us it would be
tor a business corporation or firm to take
up It's notes IN gold and then issue them
again for no equal consideration.
tanks would soon stop the credit OF
such a corporation or firm and the courts
would probably inquire into the sanity of
Its directors or memeberS and pronounce
them insane. And l maintain if it is lunacy
for business house to so conduct its finan-
clal operations 1t is equally crazy for the
government to go on doing so. 1t imposes
an unfair obligation on the government and
en- its people.
II am therefore delighted to see that the
commission have treated this subject so
| fully and recommended the establishment
OF strong reserve or redemption fund.- and
that when gold Is paid out by the govern
ment for United States notes that gold
must be brought back To the government
by those who want to get the greenbacks
Jul VI lie treasury dSdlL Ills StOpS
endless chain"
Chairman Walker Discusses Prospects
The banking and currency, committee of
the House will probably report measure
of their own. which will differ from both
the Gage recommendations and the recon-
mendations of the commission. The report,
however. increases the prospects of legisla-
| ton. 1t is regarded as almost q certainty
that the question will be taken up in both
houses of Congress, and that there will be
a test of strength.
A Star reporter asked Chairman Walker
today for an opinion of the report, and he
declined to discuss 1t, but he spoke freely
of the prospects of legislation
viii the committee report a bill?" was
asked.
Yes he replied; II think they will re-
port a measure, and will report it early;
not far from the first of February
What chance will there be Of its adop-
ton nv Congress-