The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-01-04
0URCURRENCY
Vae70s Of Comptroller
Da7ves Regarding
It's Reform.
Schemes Of the Schem-
exy TO Undo the
Republic.

CHICAGO, Jan. 1.-The Hon. Charles G.
Dawes, comptroller Of the currency, was
the guest of the Commercial club last even
Ing and delivered an address on Currency
Reform He said, in part:
I'm the election of 1896 the chief issue be-
fore the American people for settlement was
that Of the maintenance of the gold stand
ard and a sound governmental currency
The commercial crisis of 1893, with the COLI
sequent reduction in governmental reve-
nues, had developed an inherent weakness
in our present monetary system, which be-
fore that time had been latent. This weak
ness was largely due to two causes: First
the disproportion existing between demand
governmental currency liabilities and the
gold held by the treasury for their redemp-
ton; second the fact that these demand
currency liabilities, like greenbacks, being
once redeemed in gold could be paid out
again for government expenses. thus max
ing possible further presentation for gold
redemption, and creating what has become
commonly known as the endless chain
THE LEADING QUESTION.
1.-The question now before the congress Of
lue Culteu SlateS Is tndt OF the proper In
depreciation into law of the voice Of the
people expressed in 1896 in favor of sound
money and the gold standard The preSi-
dent of the United States has in two sue
cessive annual messages to congress recon-
mended plan by the adoption of which the
government can protect properly its out
standing currency liabilities and break the
endless chain without contracting the cur
rency or seeking assistance from private
corporations meeting it's obligati OF
gold redemption.
1.-The lessening of the disproportion be-
tween the demand currency liabilities and
the gold in the treasury with which to re-
deem them for the accomplishment of which
surplus governmental revenues seemed cpe
year ago absolutely essential has been
brought about by the financial operations of
the treasury incident to the war and by the
growing confidence of the people in the sta
billty of the gold standard, which has led
them to freely deposit gold In the treasury
In exchange for notes. AS pointed out in the
presidents last message, the proportion CT
net gold holdings to demand currency liza
bilities of the treasury Nov. l, 1885, was
$3.50 per cent as compared with 1856 ler
cent on Nov. l, 1897. Recog nizng these con-
ditions the president, in his last annual
message to congress, makes recommen-
dation which, ii enacted into law, would
break the endless chain and still further
strengthen the condition of governmental
currency already greatly improved by the
treasury operations Of the last year. His
words are as follows:
THE PRESIDENTS PLAN.
'' In my judgment, the present condition
of the treasury amply justfies the imme-
diate enactment of the legislation recon-
mended one year ago, under which a por
tion of the gold holdings should be placed
in a trust fund from which greenbacks
should be redeemed upon presentation, hut
when once redeemed should not thereafter
be maid out eXceDt for gold
THE words of his recommendation IN 1897
were That If any United States notes are
presented for redemption in gold aal IRE le-
deemed in gold. such notes shall be kept
and set apart and only paid out in exchange
for gold This is obvious duty
This is the Interpretation placed by the
president of the United States upon the de-
mand of the people in 1896 for monetary
reform; and while not denying, as his mes
sage shows, the necessity Of other legisla
tion, which he leaves to the wisdom of con-
gress, he strongly urges it's enactment into
law. Before the consideration of any of the
banking bills upon which there is such di-
versity and conflict of both expert and pop
ular opinion this plain practical and simple
solution of the governmental currency stu
alton suggested by the president should
pass into law. To his plan, easily compre-
hended by the great body of our citizens,
all those in favor of currency reform should
give their unqualified and loyal support.
ITO press the consideration of other pro-
posed remedies at this time will prove a
hinderance and obstruction to the adoption
of this recommendation, which is plainly
step in advance. After this recommended
ton is enacted into law those VINO have
what seems to them more complete
remedy can then present it for considera-
tion. There many sincere and able men
who maintain that the government can to
its own advantage and for the common
good, avail itself indirectly Of the note is
Sujn Of
lieve that this can be accomplished by re-
moving the present restriction requiring as
security for bank notes the specific deposit
Of government bonds so that the banks
will assume the burden of gold redemption
on government notes in order to secure the
profit from the issuing of bank circulation
to take their place.
THE GENERAL GOOD DESIRED.
1T must be remembered, however. that
the present condi. on Of the revenues finan-
and credit of our government clearly
indicated that there Is no excuse to be found
in governmental necessities for any legis-
lation which would be unwise If the in
terests of the people and the business COM
munity alone were considered. If the i'm
prOvement in governmental currency could
not be securd except by a radical change in
bank note currency, there would be ground
for demand for the concurrent considera-
tion Of governmental and banking currency
legislation. But when the Improvement Of
governmental currency is, possible otherwise
the chances for 1t should not be jeopardiz-
ed by the refusal OF the advocates Of bank
asset currency to present their case upon
its own merits alone. At present among
those who favor system Of bank notes
secured by the commercial assets of banks
there does not seem to be that definite
agreement upon the acceptance Of terms
which will enable any Of these plans to re-
ceive even the united support of those who
believe in the practibllity under our bank
ing system Of bank asset currency.
Some Of the plans of one year ago differ
from those advocated today. The two bills
having their source in the house committee
on banking and currency differ materially
from each other and neither commands the
united support of that committee.
Each OF these nitls differs from other