5. Since bank assets (including stockholders' liabilities, etc.), must be the means of ultimate redemption of such issues, what funds would you deem necessary to be held as a cash reserve for the immediate redemption of the notes; and in what form; and in whose hands?

6. In case of notes based on bank assets, what means can you suggest to obtain and preserve a high character of discounts?

7. Can any watchfulness of other banks connected by locality or business connections be brought to bear on a bank to prevent bad banking? Can such a scheme be devised as in cities where Clearing House Associations detect and punish weakness, by which country banks can be guarded?

8. What plan of examination and inspection would you recommend?

9. What methods would you suggest by which uniformity of note issues based on assets could be secured throughout the country? If by redemption, state where and how?

10. What, if anything, beyond provision for immediate redemption is needed for securing the elasticity of note issues in periods of normal business?

11. In times of panic or sudden stringency, how would you provide for additional issues by the banks to enable them to continue discounts and prevent commercial distress?

12. Of what should the bank reserves consist?

13. Should any National bank be permitted to pay interest on the current deposits of other banks?

14. Should deposits of country banks in reserve cities be authorized to be counted as a part of the required reserve?

15. What should be the minimum limit of capital for National banks?

16. Should the existing ten per cent. tax on State bank notes be repealed?

17. Should any National bank be permitted to establish branches under its single management ? If so, under what limitations, if any? 18. Should branch banks be obliged to redeem the notes of the parent bank and of other branches ?

19. Should branch banks be required to maintain any specified proportion of reserves to liabilities, independent of regulations for the general accounts of the parent bank?

On October II, the Commission reconvened and sessions were held daily until October 22, when an adjournment was taken to Wednesday, November 3. Sessions were held daily from November 3 to November 13, an adjournment being then taken to November 17. Upon reconvening on November 17, the Commission continued in session during the 18th and 19th, and

took an adjournment to December 15, reconvening on that date and continuing in session during December 16 and 17, adjourning upon the latter date sine die.

At the session of Friday, December 17, a preliminary report, stating the results of its labors, was adopted by the Commission. This was given to the public on January 3, 1898. A few days later, a bill embodying the recommendations of the report2 was introduced in the House of Representatives by Representative Overstreet of Indiana. On January 12, the Committee on Banking and Currency listened to arguments in defense of the measure from Senator Edmunds and Messrs. Fairchild, Taylor, Fries, and Bush.

The Indianapolis Monetary Convention was reconvened January 25, 1898. At this session, the Executive Committee made the following report:

In accordance with the general resolutions adopted in the last convention, President Patterson appointed an Executive Committee of fifteen members, charging it to act for the convention when not in session and to execute the will of the convention as expressed in the general resolutions.

Faithful to its trust, the Committee assembled in Washington and presented its plan to the Administration. An appeal was made to the Congress seeking authority for the President to appoint a Congressional Commission to consider the entire subject of our financial organization and make recommendation for improvement therein.

President McKinley sent a special message to Congress in support of your Committee's appeal, and the members of the Committee are pleased, in justice to the President, to report that the President's support was full, earnest, and steadfast, of the Committee's effort to secure legislation for the establishment of a Congressional Commission.

Representative C. W. Stone, of Pennsylvania, introduced a bill into the House in response to the President's message, which was passed, but the measure was not successful in the Senate. Congress adjourning without action, the Executive Committee proceeded further in its prescribed duty and chose a Commission of eleven members to make a thorough investigation of the monetary affairs and needs of the country in all relations and aspects, and to make appropriate suggestions as to any evils found to exist and the remedies therefor.

The members of the Commission, at great sacrifice of their time and at serious loss to their private business affairs, patriotically and faithfully labored to accomplish the task imposed upon them.

See pp. 20-59.

2 See pp. 59-74.

The Executive Committee is pleased to report to the Convention that the Commission has concluded its labor and submitted a report and plan, together with a memorandum bill, which embodies the recommendations suggested in its plan.

Congressman Overstreet, of Indiana, has introduced into Congress in substance the bill recommended by the Commission, and it has been referred to the Committee on Banking and Currency for investigation and report.

Copies of the report of the Commission, its memorandum bill, the bill introduced by Congressman Overstreet, and the report of the first meeting, can be found in the chairs.

The members of the Executive Committee desire to express their deep sense of gratitude for the unlimited encouragement and support they have received at the hands of their fellow delegates in the convention and at the hands of the general public, and now that the duties delegated to them have been performed, pray that they be further instructed or discharged from service.

The Committee on Resolutions presented, and the delegates in convention, without dissent, adopted, the following resolutions, endorsing the report and plan of the Commission:

Resolved, That this Convention recognizes its obligations to the Executive Committee selected under the resolutions of January 15, 1897, for the thorough and able manner in which they have discharged the duties devolved upon them by those resolutions.

They deserve the highest commendation for their determined effort to obtain an Act of Congress providing for the selection of a Monetary Commission, to which the duty should be entrusted of devising the best means of securing a wise and stable currency system through legislative enactment.

As the Congress did not adopt a law for the appointment of such a Commission, the Executive Committee, in pursuance of the authority conferred by the Convention, proceeded to make such a selection, consisting of men from different sections of the country, and from different walks in life, who were well fitted by their ability, their experience, and their high character, to deal with this most important subject.

The Convention recognizes with gratification the wise and able manner in which the Monetary Commission have dealt with the subject, and find in their work the elements of a system calculated to be of inestimable benefit to the country.

We most cordially approve of the plan of currency reform submitted by the Monetary Commission, in the belief that if enacted into law it would accomplish, as far as possible, the results contemplated by the Commission, as set out in the following propositions:

1. To remove, at once and forever, all doubt as to what the standard of value in the United States is, and is to be.

2. To establish the credit of the United States at the highest point among the nations of the world.

3. To eliminate from our currency system those features which reason and experience show to be elements of weakness and danger.

4. To provide a paper currency convertible into gold and equal to it in value at all times and places, in which, with a volume adequate to the general and usual needs of business, there shall be combined a quality of growth and elasticity, through which it will adjust itself. automatically and promptly to all variations of demand, whether sudden or gradual; and which shall distribute itself throughout the country as the wants of different sections may require.

5. To so utilize the existing silver dollars as to maintain their parity with gold without imposing undue burdens on the Treasury. 6. To avoid any injurious contraction of the currency.

7. To avoid the issue of interest-bearing bonds, except in case of an unlooked-for emergency; but to confer the power to issue bonds when necessary for the preservation of the credit of the government.

8. To accomplish these ends by a plan which would lead from our present confused and uncertain situation by gradual and progressive steps, without shock or violent change, to a monetary system which will be thoroughly safe and good, and capable of growth to any extent that the country may require.

These declarations, and the plan which follows, are honest in purpose; they are sound in business principle; they are adapted to the needs and wants of the whole people; they are wisely safeguarded against undue contraction of the currency on the one hand, or its perilous expansion on the other. We believe their enactment into law would stimulate hopefulness, inspire confidence, and conduce to a sense of safety that would be the forerunner of unexampled national growth and prosperity.

Approving of the expressed purposes of the Commission, and of its plan, we do most earnestly and cordially commend it to our fellowcitizens as worthy of their approval and adoption, and we urge upon the Congress of the United States that the principles embodied by the Commission in their report should be enacted into law, with the belief and expectation that the effect would be to secure a solid, substantial, and stable financial system that would redound to the credit of the country and insure a state of prosperity that cannot be achieved unless there is a system of finance the integrity and adaptability of which cannot be questioned or gainsaid.

That in the opinion of this Convention it is the duty of every citizen to urge upon his representative in Congress the adoption of such legal enactments as will carry into effect the recommendations of the Monetary Commission.

Existing conditions are propitious for effort in the direction of currency reform. General and able discussion has induced earnest and sober thought and turned the minds of men from fallacies and

delusions to that which was sound and wholesome. The high prices of many of our agricultural and manufacturing products, the inflowing of gold, and the improvement in business have gone far toward allaying that feeling of discontent and unrest which was so disturbing and so full of menace but a short time ago. Never before has public sentiment been in so healthy a state upon this subject as is now becoming generally prevalent.

The time has now come when the prospects for the establishment of the gold standard upon a firm and enduring basis are brightening and encouraging. The people want a note currency which shall be as good as gold. This movement proposes to bring about that result.

The people want "a volume of currency adequate to the general and usual needs of business" "with a quality of growth and elasticity through which it will adjust itself automatically and promptly to all variations of demand, whether sudden or gradual."

These ends are not only within the scope of what is contemplated, but are the direct objects intended to be gained by the plan of the Monetary Commission.

The people of the Western and Southern states wish the note issues so distributed that the scarcity of currency will no longer hamper and distress them in their business operations.

A method is proposed whereby their wants can be supplied, and their just demands can be complied with.

We appeal to them-we appeal to all patriotic citizens to unite with us in an earnest and determined effort to secure from Congress such legislation as will wisely but surely eventuate in bringing about sound financial methods, and in building up and establishing confidence, security, and safety in business transactions and in the ownership and value of property.

That the Executive Committee be continued, with power and authority to add to their number and to fill any vacancies which may occur, and also with power and authority to adopt such measures for procuring the needed legislation from Congress as they, in their judgment, may deem advisable and expedient.

The Executive Committee offered, and the delegates unanimously adopted, the following expression appreciative of the services of the Commissioners:

This resolution of the Indianapolis Monetary Convention, of January 1898, of representatives of the business men and business interests of the United States, chosen by the Boards of Trade and other representative commercial organizations, makes this public testimony and record of the very earnest appreciation and gratitude, which all the business men whom we represent, and this Convention and each of its members feel, and by this resolution witness, to Hon. George F. Edmunds, George E. Leighton, T. G. Bush, W. B. Dean, Charles S.