The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-01-01
BEST CURRENCY PLAN
Comptroller Dawes Urges Adoption
of McKinley's Scheme.
BREAK ENDLESS CHAIN
M'KINLEY STANDS FOR THE
GOLD STANDARD.
And Whatever He Recommends
Should Be Adopted-Comptroller
Views With Disfavor the PROPOSE
ton to Give the Banks a Monop-
oily of the Country's Money.

Chicago, Dec. 31.-The Hon. Charles
G.. Dawes, comptroller Of the currency,
was the guest Of the Commercial club
this evening, and delivered an address
IN Currency Reform" He said, in
part:
cat the election of 1896 the chief issue
before h American people for settle
ment vas thai of the maintenance of
the gold standard and sound govern
mental currency. The commercial cri-
sis of 1898, with the consequent reduc-
ton in governmental revenues, had de-
veloped an inherent weakness in our
present monetary system, which, before
that time, a been latent. This weak
ness was largely due to two causes;
first, the diSproportion existing between
demand governmental currency liabili-
ties n the gold held by the treasury
for their redemptiOn; second, the fact
hat these demand currency liabilities,
like greenbacks, being once redeemed
in gold, could be paid out again for
government expenses, thus making pos
sible a further presentation for gold
redemption, and creating what has be-
come commonly known as the endless
chain
LAS pointed out in the presidents last
message, the proportion of net gold
holdings to demand currency liabilities
of the treasury, Nov. 1, 1898, was 25.35
per cent, as compared with 1896 pe-
cent Nov. l. 1897. Recognizing these
conditions, the president, in his last
annual message to congress. makes a
recommendation which, if enacted into
law. would break the endless chain, and
still further strengthen the condition of
governmental currency, already so
greatly improved by the treasury opr-
ations of last year.
Before consideration of any Of the
banking bills, upon which there is such
diversity and conflict of both expert
and popular opinion, this plain. prac-
teal and simple solution of the gov
ernmental currency situation suggest
ed by the president should pass int
law. To his plan, easily comprehended
by the great body of u citizens, all
those in favor of currency reform
should give their unqualified and loyal
support.
'1To press the consideration of other
proposed remedies at this time will
prove a hindrance and obstruction tt
the adoption of this recommendation,
which is plainly a step in advance. At
ter his recommendation is enacted
into law, those who have what seems
to them a more complete remedy can
then present II Tor consideration. Inere
are many sincere and able men who
maintain hat the government can, to
its own advantage and for the common
good, avail itself Indirectly Of the note
issuing function of national banks.
They believe hat this can be accom-
plished by removing the present re-
striction required as security for bank
notes, the specific deposit of govern
bonds. so that the banks will
assume the burden Of gold redemption
of government notes in order to Sc
cure the profit from the issuing of bank
circulation to taxi their place.
TT must be remembered. however,
that the present condition Of the
finances and credit of our gov
eminent, clearly indicate that there ISL