DOUBLE STANDARD.

The question of a standard of value being under investigation in 1831, a Democratic Congressional committee, with Campbell P. White as chairman, reported as follows:

"The committee think that the desideratum in the monetary system is the standard of uniform value. They cannot ascertain that both metals have ever circulated simultaneously, concurrently, and indiscriminately in any country where there are banks or money dealers, and they entertain the conviction that the nearest approach to an invariable standard is its establishment in one metal, which metal shall compose exclusively the currency for large payments."

METALLIC AND PAPER CIRCULATION, 1898. Amounts of gold and silver coins and certificates, United States notes, and nationalbank notes in circulation July 1, 1898.

Population of the United States July 1, 1898, estimated at 74,522,000; circulation per capita, $24.74.

COIN AND PAPER CURRENCY.

There are ten different kinds of money in circulation in the United States, namely, gold coins, standard silver dollars, subsidiary silver, gold certificates, silver certificates, Treasury notes issued under the act of July 14, 1890, United States notes (also called greenbacks and legal tenders), national-bank notes, and nickel and bronze coins. These forms of money are all available as circulation. While they do not all possess the full legal tender quality, each kind has such attributes as to give it currency. The status of each kind is as follows:

Gold coin is legal tender at its nominal or face value for all debts, public and private, when not below the standard weight and limit of tolerance prescribed by law; and when below such standard and limit of tolerance, it is legal tender in proportion to its weight.

Standard silver dollars are legal tender at their nominal or face value in payment of all debts, public and private, without regard to the amount, except where otherwise expressly stipulated in the contract.

Subsidiary silver is legal tender for amounts not exceeding $10 in any one payment.

Treasury notes of the act of July 14, 1890, are legal tender for all debts, public and private, except where otherwise expressly stipulated in the contract.

United States notes are legal tender for all debts, public and private, except duties on imports and interest on the public debt. Gold certificates, silver certificates and national-bank notes are not legal tender, but both classes of certificates are receivable for all public dues, while national-bank notes are receivable for all public dues, except duties on imports, and may be paid out by the Government for all salaries, and other debts and demands owing by the United States to individuals, corporations and associations within the United States, except interest on the public debt, and in redemption of the national currency. All national banks are required by law to receive the notes of other national banks at par.

The minor coins of nickel and copper are legal tender to the extent of 25 cents.

REDEMPTION.

Gold coins and standard silver dollars, being standard coins of the United States, are not "redeemable."

Subsidiary coins and minor coins may be presented in sums or multiples of twenty dollars to the Treasurer of the United States or to an assistant treasurer for redemption or exchange into lawful money.

United States notes are redeemable in "coin," in sums not less than $50, by the assistant treasurers in New York and San Francisco.

Treasury notes of 1890 are redeemable in "coin," in sums not less than $50, by the Treasurer and all assistant treasurers of the United States.

National-bank notes are redeemable in lawful money of the United States by the Treasurer, but not by the assistant treasurers. They are also redeemable at the bank of issue. In order to provide for the redemption of its notes when presented, every national bank is required by law to keep on deposit with the Treasurer a sum equal to 5 per cent of its circulation.

Gold certificates, being receipts for gold coin, are redeemable in such coin by the Treasurer and all assistant treasurers of the United States.

Silver certificates are receipts for standard silver dollars deposited, and are redeemable in such dollars only.

"Coin" obligations of the Government are redeemed in gold coin when gold is demanded, and in silver when silver is demanded.

PER CAPITA WEALTH.

Is the amount of money in a country an index of its prosperity, as free coinage men insist? The per capita metallic wealth of the United States, according to the report of the Director of the Mint, was $24.74. According to this theory the people of Aden and Terim, Ceylon, Hongkong, Labaun, and Straits Settlements ought to be the most prosperous in the world, for theirs is nearly three times that of the people of the United States, their per capita share of the world's money stock being 63.680. Any American ought to be glad to change places with the natives of Hawaii, whose per capita wealth is 60, chiefly gold; or the Siamese whose per capita is 42.68; or the people of the South African Republic, with 38 per capita. Great Britain's per capita is but 20.65; Germany's but 18.95, yet the export commerce of these nations is enormɔus, Reducing their per capita share in the money stock of the world to a table, giving their foreign commerce in juxtaposition, will show how little relation one bears to the other.

Great Britain with a per capita metallic money wealth 14.03 less than France, has a world commerce nearly three times as great as that of France, while Germany with a per capita metallic stock 15.63 less than France, conducts nearly twice as much foreign business as France.

CURRENCY REFORM.

Action of the Business Men of the Middle West.

One of the results of the contest between silver monometallism and sound money in 1896 was the action of the business men of the Midde West to take steps for providing a currency system which would meet the needs of the whole country, take the currency out of politics, and avoid such contests in future. Two great conventions of business men, held at Indianapolis in January, 1897, and January, 1898, were the result. The first convention authorized the

*Figures of Mr. Jules Roche, formerly French Minister of Finance and Commerce.

appointment of a Monetary Commission, for the careful study of the currency problem and its relation to the development of the United States and for the preparation of a measure which would strengthen the national credit and afford a sufficient and scientific currency. The plans of this convention were carried out, the Commission was appointed and made its report, and the second convention gave an enthusiastic and unanimous indorsement to the plan reported and recommended its adoption to Congress.

The movement for the creation of a Monetary Commission originated in Indianapolis soon after the election of 1896. Mr. Hugh H. Hanna, an active Republican of that city, and a few other prominent citizens proposed a conference of representatives of Western boards of trade for the purpose of considering this subject. The matter was laid before the board of governors of the Indianapolis Board of Trade by Mr. Hanna, on November 18, 1896. He referred to the fact that public sentiment had not yet crystalized in favor of any specific plan of currency reform, and expressed the belief that a movement for definite action might best originate in the Central West. His motives and purposes were defined thus:

"No movement could or should succeed that is not based upon the broadest possible justice and intelligence, and in the entire interest of the whole people. Such investigation and framing should only be intrusted to those who are great enough to rise above all party relations and prejudice, to discard all former ideas when confronted with better methods, and fairly and honestly deal with the great question for the general good and for defense against the instability of values, which has caused such immeasurable losses to the people of this country within the few years just passed. The business man is the victim of all such agitation, and I stand in his name to protest with all possible emphasis against further risk by delay, lest the opportunity slip.”

THE INDIANAPOLIS CONVENTION.

This declaration by Mr. Hanna was the keynote of the movement which led to the appeal to President McKinley for the appointment of a Currency Commission. The Indianapolis Board of Trade first invited a conference of representatives from each of the boards of trade of Chicago, St. Louis, Cincinnati, Louisville, Cleveland, Columbus, Toledo, Kansas City, Detroit, Milwaukee, St. Paul, Des Moines, Minneapolis, Grand Rapids, Peoria, and Omaha. This meeting was only for the purpose of deciding upon the basis of a larger convention, which was held on January 12, 1897, in Tomlinson Hall, Indianapolis. The boards of trade, commercial clubs, and similar organizations in all cities of the United States having 8,000 or more inhabitants, according to the census of 1890, were in

vited to take part, and about 350 delegates responded. Ex-Governor Stanard, of Missouri, was the temporary presiding officer, and the Hon. C. Stuart Patterson, of Philadelphia, was permanent chairman. The subject of currency reform was discussed on the floor and in committees, and it was determined that a Currency Commission should be created whose recommendations would carry with them the weight of the business sentiment of the country.

There was some division of opinion in the committee on resolu tions as to whether the Commission should be appointed by authority of Congress or by direct authority of the convention. Both sides yielded something in this respect, and it was agreed that Congress should first be asked to act upon the subject, and that in case of failure to act promptly a Commission should be named by the Executive Committee of the Convention then in session. An Executive Committee of fifteen was named by the chairman of the convention, with Mr. Hanna at its head.

In his inaugural address President McKinley made reference to the subject as follows:

“The country is suffering from industrial disturbances from which speedy relief must be had. Our financial system needs some revision; our money is all good now, but its value must not be further threatened. It should all be put upon an enduring basis, not subject to easy attack, nor its stability to doubt or dispute. Our currency should continue under the supervision of the Government. The several forms of our paper money offer, in my judgment, a constant embarrassment to the Government, and imperil a safe balance in the Treasury. Therefore I believe it necessary to devise a system which, without diminishing the circulating medium or offering a premium for its contraction, will present a remedy for those derangements which, temporary in their nature, might well in the years of our prosperity have been displaced by wiser provisions. With adequate revenue secured, but not until then, we can enter upon such changes in our fiscal laws as will, while securing safety and volume to our money, no longer impose upon the Government the necessity of maintaining so large a gold reserve, with its attendant and inevitable temptations to speculation. Most of our financial laws are the outgrowth of experience and trial, and should not be amended without investigation and demonstration of the wisdom of the proposed changes. We must be both "sure we are right" and "make haste slowly." If, therefore, Congress in its wisdom shall deem it expedient to create a commission to take under early consideration the revision of our coinage, banking, and currency laws, and give them that exhaustive, careful and dispassionate examination that their importance demands, I shall cordially concur in such action. If such power is vested in the Presi