The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-06

The currency bill prepared by the Senate
Finance Committee is far superior in work
manshp to that OF the House Caucus Com
mittee. and exhibits a much moro intelli-
gent understanding OF the subject. 1t does
not pretend to establish the gold standard
as new departure in our legislation, but
frankly recognizes its existence under
former enactments. Nor does II, as the
House bill docs, both declare gold to be the
exclusive medium for the performance OF
all obligations. public and private. and yet
preserve the legal tender quality OF the
silver dollar. Its provisions Tor redeemlng
in gold the obligations OF the Government,
and for maintaining reserve OF gold for
the purpose are also harmonious with
those Of the rest OF the bill, and leave no
room for doubt and dispute.
An Objectionable feature Of the bill IL that
which continues In force the law authoriz-
ing the Treasury to accept deposits Of gold
coin and issue for them certificates
expressly payable in such coin. A form OF
currency IL thus created which differs
unnecessarily from the regular Government
notes, and possesses quality superior TO
thoirs. Since the Government notes are to
be redeemable only in gold. and an ample
fund 10 to be provided for the purpose,
they will be, In effect, gold certificates. and
ought to take the place OF them. Re-
ceiving gold on special storage Is a
business which should be- left to private
enterprise. Our city banks have supplied
themselves, In their Clearing House vault,
with the conveniences they need for the
bookkeeping of their gold. and other owners
- 81. IL Ill.
they want It.
Precisely what the bill aims TO accom-
plish by the provision for exchanging re-
deemed notes for any gold coin in the
general fund OF the Treasury Is not clear
Possibly, IL may be- the supplying Of the
Treasury with paper money to use In pay
ing demands on II Instead OF actual coin.
As to the privilege OF taking out redeemed
notes in exchange for gold, granted to
private citizens and corporations. no
limit should be set to tbs amount OF
notes available for the purpose. The gold
thus received should, however, be made a
part OF the redemption fund and be kept
for exclusively redemption purposes. Tho
notes would thus be, as has been said. rs
good as gold certificates. and would render
the issue OF such certificates superfluous.
The provision Of the bill for cancelllng
the Treasury notes issued under tho Act
OF July IL. 1890. whenever they are
either redeemed or otherwise paid into
the Treasury, and for issuing silver GER
titicates in their place, gives effect to
existing law and somewhat extends its
operations The War Revenue act re-
Qures that OF the bullion held against tho
notes 81. 800. 900 shall be coined monthly,
and tho Act OF July IL. 1890. requires that
the notes issued under It shall never exceed
the value Of the silver bullion and silver
dollars In the Treasury procured by their
means ID is now further proposed to can
Gel them when they arc paid into the
Treasury for any purpose whatever.
The restriction OF tho denominations OF
Government notes OF all kinds, as well as
OF national bank notes, to $40 and upward.
while silver certificates are to be issued in
smaller denominations. is an effort to Sc
cure the permanent circulation OF these
representatives Of silver dollars A better
measure would be to issue. In place both OF
the dollars and OF the certificates repre-
senting them. plain Government notes and
sell the silver in the Treasury for what It
will bring. The silver is as useless where
1t 10 as 30 much pig lead. and the loss OF in
terest on it's value is large.
The scheme for refunding tho national
debt into thirty-year 2 per cent. bonds and
for allowing the national banks to take out
circulation to the par value OF such bonds Is
one both for and against which much may
be said. Whether the national debt shall
be paid off az 1t natures. or shall be- made
permanent burden upon the nation Is a
question which cannot DO answered ofYhand.
Whether. too. the national bank system
shall be preserved. or whether it shall be
allowed to dea natural death, has yet to be
considered by the nation. AT present 1t
would seem to be the wise course not to
enact the recommendations Of tho Senate
committee in regard to both subjects, but
leave them for future discussion.