Orange County observer. [volume] (Hillsborough, N.C.) 1880-1918, 1898-01-13
MONETARY COMMISSIONS REPORT.
Made by Authority Of the Indianapolis
Business Mems Convention.

NeI VII n
Made by Authority Of the Indianapolis
Business Mems Conventioa.
The report of the Monetary Com
mission appointed under authority Of
the convention of business men, held
in Indianapolis last January, has jnst
been made public. The existing gold
standard on which business has been
done since 1879 Is maintained IN the
ground the industrial interests de-
mand certainty as to what the stand
ard shall be. To this end 1t is urged
that the United States should remove
all uncertainty as to the meaning Of
"coin" in its obligations, thereby saw
ing the taxpayer by the ability to bor-
row at a lower rate of interest. No
attempt is made to remove the exist
ing silver dollars, nor to change their
legal tender quality; on the contrary,
q place is provided for them in the
circulation by forbidding the issue of
any paper money other than silver GER
tiicates in denominations below $40.
It is regarded by the Commission as
dangerous to maintain the present
practice Of using Government demand
obligations as money.
The Commission, therefore, strongly
urge the Government to withdraw its
demand obligations now used as money,
decline to provide gold for exporters
and put the burden and expense of
maintaining o r~edeemable paper
circulation Upon the banks. In order
to meet the demand obligations, the
present reserves of gold in the Treasury
furnish q sufficient sum to be set aside
in a Division of Issue and Redemption;
and the Secretary of the Treasury is
authorized to sell bonds whenever the
reserves need replenishment. In this
way, OF from surplus revenue, the de-
mand obligations Chat is, United
States notes and Treasury notes of
$780, can be removed in such a way
that the cost to the country can be re-
duced, with the result of simplifying
our currency. and adding to confidence
in the certainty of our standard. By
the plan of the Commission the with
lrawal of Government paper is so
arranged that contraction cannot posi-
bly, take place; if United States notes
are cancelled their place will be taken
by the gold paid out for them, or by
the expansion of bank notes.
The demand obligations of the Uni
ted States were not o money based on
property; they were only a debt. On
the other baud, a bank note is never
issued fraud, of course, excluded) ex-
cept for o consideration in negotiable
property of equal or greater value.
The bank note comes forth as the Sc
quel of a business transaction, and IS
based on the active property OF the
country which is passing between pro-
ducers and consumers. This property
is always negotiable and always equal
to the duty Of meeting the note liabil
ity. Bank notes are as sound as the
busine3 IS transactions of the country.
The currency Of the country, more
over, should increase IS the transac-
tons of the country increase; hence
the rigid unchanging issues of the
Government make them an inelastic
part of the circulation, while by the
very process of their issue bank notes
alone can be automatically adiustedto
the changing transactions of the bust
ness community.
In amending the present national
banking system, the Commission were
actuated by q desire to secure abso'
lutte safety to thenote holder; to make
the notes uniform and of equal cur
rency in all parts of the country t.
create an elastic system, which, while
expanding il response to increasing
transactions, should healthily contrac
when transactions diminish, and which
would help in q better distribution o
banking facilities throughout TN
Western and Southern Sts>es.
While providing for the partial u.s.
teonds for securing notes twenty
five per cent. of the capital) the Com
mission propose that notes beyon'
this SD Nld be issued on all, instea(
of a pat of the resources Of a bank
and within a few years that no specia
bond security should be required
Banks may issue notes up to sixty pc
cent. VI tuelI- CdpllaI "ilAoNo AZ
straint; for issue beyond sixty pc
cent. and up to eighty per cent. the.
pay a tax of two per cent; for thos
beyond eighty per cent. and up to 10
per cent. they pay a tax of six pc
cent. These notes would be a prio,
lien upon oil the of til
bank, and, in addition. upon tn
stockholders liability. Moreover, al
banks issuing notes contribute hv
per cent. of their circulation as a per
manent guaranty fund For daily re
dempticns, banks are required to kee
a five per cent. redemption fund !
the hands of the Comptroller of tn
Currency. Banks of $4,000 capita
may be established in places OF 400
inhabitants, aud branch banks al
also permitted
unsteady Inclined.
The following is an exact copy OF
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