The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-29
THE NEW MONETARy RyII.

"A Washington dispatch. printed Yesterday.
stated that the Republican caucus new
monetary bill had received its final revision
and would be given to the press to-day.
The dispatch gave only an outline of the
bill, but through the courtesy of Hon. II.
IL. Hanna, chairman of the executive COM
mlttee OF the indianapolis monetary con-
~vention, the Journal has received a CODY of
1t. 1t will be introduced in Congress under
very favorable auspices, representing, as 1t
does, the mutual views of the monetary
commission OF which Mr.. Hanna Is chair
man. and the unanimous conclusions of the
special committee Of eleven appointed by the
Republican caucus to draft a measure on
the subject. In the bill as it stands the
has wisely refrained from cover
Ing the whole ground OF devising a new
banking and currency system, thereby
avoiding points Of difference on which Con-
gress might not be able to agree. and has
confined itself to a few simple propositions
for the establishment Of the gold standard.
guaranteeing the equality and parity of all
our money, providing for an increased
supply of subsidiary coin and small notes,
and providing for utilizing the full loanable
capital of banks, and it's proper distribution
In the simplest manner. The bill by which
it is proposed to accomplish these purposes
is entitled "A bill to define and give the
standard of value, to maintain the parity
OF all forms Of money issued or coined by
the United States, and for other purposes"
In the bill, as in its title, the place of first
Importance Is given TO establishing the
standard of value. Section L of the bill
provides: That the tandard unit of value
shall, as now, be the dollar, and shall con-
sist of twenty-five and eight-tenths grains
Of gold. nine-tenths fine, or twenty-three and
twenty-five one-hundredths grains of pure
gold, being the one-tenth part of the eagle
This simple provision will end the battle
of the standards and be notice to the world
that, in common with all other civilized
countries, the United States has adopted
and intends to maintain the single gold
standard without reference to the fiuctua-
ting value of silver. The effect of this
declaration will be to strengthen the public
credit, fortify confidence and dispel all lin
gering doubt, at home and abroad, as to
the financial status and policy of the United
States One effect will be to enable the gov
eminent to fund the national debt at a
lower rate of interest than it is now paying
and TO negotiate future loans, If they have to
be made, more advantageously than here
tofore. 1t will also act as an additional
stimulant to the general prosperity and ex-
banding trade of the country, which, owing
their existence to the gold standard, depend
upon its maintenance for their continuance.
From Section l It follows, of course,
that all the United States bonds and treas
ury notes shall be payable in gold coin,
and it is so provided in Section 2, with
the proviso that nothing herein contained
shall be construed or held to affect the
present legal-tender quality Of the silver
dollar, or Of the subsidiary or minor coins,
or the paper currency Of the United States"
The effect of this would be to make all
forms of our currency, silver and paper.
equal to gold, the latter being the sole
standard of value. Another section provides
for the keeping on hand in the treasury of
a special fund for the redemption of green
backs, which, when once redeemed, shall
not be paid out again, except in exchange
for gold. This provision will forever put an
end to the so-called endless chain which
polling it to redeem greenbacks with gold
over and over again, thus continually drain
ing the treasury of gold coin.
The bill makes some changes in the
national bank law IN the direction Of an
increased and elastic currency. First, it
authorizes national banks to issue circula-
ton to the par value of the bonds deposited
for its security, instead of to only 80 per cent.
of such value, as now. AS the bonds are
worth considerably more than par there is
no reason why notes secured by them should
not be issued to at least the par values.
This amendment to the law has been rec
commended by five secretaries of the treas
ury and four presidents. Second. the bill
| repeats the present tax of 1 per cent. upon
bank circulation and substitutes therefor a
tax of one-tenth of / per cent, ~semi-annual-
ly, or one-fifth of 1 per cent. a year, on the
| franchises Of national banks as measured by
their capital, surplus and undivided profits.
This would tighten the taxes of the small
banks, all of which have circulation, and
increase the taxes Of the large banks, COM
paratively few of which have circulation,
thus distributing the burden Of taxation
more equally. The aggregate amount Of
revenue to the government would be greater
than under the present iaw. Finally. the bill
authorizes the organization Of national banks
with a capital stock of s25 900. in towns
having a population of 1000 inhabitants or
less This provision is intended to meet the
growing demand in sparsely settled districts
Of the country for banking accommoda-
lions, thus creating small distributing points
for the loanable capital Of the country,
remote from the money centers and directly
c~ontributory TO local business.
The bill thus perfected after full discus
sion and interchange Of views will be re-
ported to the Republican caucus by the
special committee next Saturday night. 1t
is to be hoped it may be adopted as a eau
Gus measure and be passed by Congress as
early in the session as possible.
The auditor for the Postoffice Department,
in his report to the secretary of the treas
ury, says the money order system is in no