Virginia gazette. [volume] (Williamsburg, Va.) 1893-192?, 1898-01-08

Made BY Authority sf she IndfsnspoSis
Bussnc>s Mems conventiSs.

in Indianapolis last January, has just
been made public The existing gold
standard on which business has been
done since 1879 Is maintained on the
ground the industrial interests de-
mand certainty as to what the stand
ard shall be. To this end it 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 10 Dor
row At n lower rate Of interest. No
attempt is made 10 remove the exist
ing silver dollars, nor TO change their
legal tender quality. on the contrary,
a place is provided for them IN the
circulation by forbiddiug the issue Of
any paper money other than silver GER
tihcates in denominations below $40
II Is regarded by the Commission as
dangerous 20 maintain the present
practice Of using Government demand
obligations as money.
The Commission. therefore. strongly
urge the Government 20 withdraw Its
/ demand obligations now used as money,
/ decline TO provide gold for exporters
/ aud put the burden and expense OF
maintaining redeemable paper
circulation upon the banks. In order
TO meet the demand obligations, the
| present reserves of gold in the Treasury
furnish a sufficient sum 70 be set aside
in n Division Of Issue and Redemption;
and the Secretary OF the Treasury IS
authorized 20 sell bonds whenever thu
reserves need replenishment. In this
way. or from surplus revenue, the de-
mand obligations THAT Is, United
States notes and Treasury notes Of
1901 can be removed in such way
that the cost 10 the country can be re-
duced. with the result OF simplifying
our currency. and adding 90 confidence
in the certainty OF our standard. by
the plan Of the Commission the with
drawal Of Government paper IS so
arranged that contraction cannot possi'
blv take place: il United States notes
are cancelled their place will be taken
bv the gold paid ont for them, or by
; the expansion Of bank notes.
: The demand obligations Of the Uni
. tel States were not money based or
: property; they were only debt. OF
: tho other hand. bank note IA never
e issued (fraad, OF course, excludei) ex
D cept for consideration in negotiable
:. property Of equal or ereater value
: The bank note comes forth as the Sc
= ouel OF O business ira saction, and 1
80 based on the active property OF tn
country which Is passing between pre-
ducers aud consumexS. This propert
L is always negotiable aud always equs
X 30 the duty OF meeting the note liabi
- ity. Bank notes are as sound as "a
= business transactions Of the countrl
D. The currency OF the country, more
p over, should increase as the transa
lie tons Of the country increase; hen'
the rigid enchanting issues OF 20
d Government make them an inelast
n part of the circulation, while by q
I'd very process Of their issue bank not
Il alone can be automatically adjusted
~ the changing transactions of the bus
ness community.
re In amending the present nation
IL banking system, the Commission we
=. actuated by desire 20 secure abs
as lutte safety TO the note holder; 10 ma
Is the notes uniform and of equal CT
- rency in all parts OF the country
he create an elastic system, which, VIII
expanding in response 10 increasi
transactions, should healtbily contr'
. when transactions diminish. and viii
> would help in q better distribution
Y. banking facilities throughout
Western and Southern States.
d. While providing for the partial I
OF bonds for securing notes (twen
five per cent Of the capital) the Co
:, mission propose that notes beyC
a. this should he issued on all, inst'
on of a part of the resources of ba
and within few years that no spe'
bond security should be reQuir
ie Banks may issue notes up 10 sixty
iP cent. of their capital without
ny strsint; for issue beyond sixty
ny cent. and up to eighty per cent. q
IL pay q tax of two per cent; for til
es' beyond eighty per cent. and mp to
=, per cent they pay tax Of six
pay cent. These notes would be pl
ie- lien upon all the resources OF
eSs bank. and, in addition. upon
no. stockholders liability. Moreover,
" banks issuing notes contribute
n's per cent. of their circulation as q
manent guaranty fund For daily
re- demptions, banks ore required to
on q five per cent redemption fun
'"S the hands of the Comptroller of
Ter, .r,,-raDcv Ranks ~ So5 600 ca,