New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-12-29
BUCKNER'S FINANCIAL SCHEMES.
HIS CRITICISM OF THE CONTROLLERS PLAN TO All
NATIONAL BANKs-IIS ULTIMATE OBJECT.


NATIONAL BANKS-IIIS ULTIMATE OBJECT.
[BY TELEGRAPH TO THE TRIBUNE
WASHINGToN, Dec. 2S.-Chairmau Buckners
statement of Controller KnoX's plan to enable tho
National banks to retain their circulation is not
quite fair or complete. He is reported saying
that the proposed scheme he thought would run
the per cent bonds up to- say 130, and this wonld
be a dangerous thing to do. Who could say, he
asked that the Government might not be compelled,
under the operation of the sinking fund laws, TO
call in these bonds at this enhanced yaluef Who
conld say that, with the bonds at that figure banks
might not conclude TO retire their circulation in or
der to get their bonds and realize the big premium,
thus largely contracting the cuirencyf II Mr..
Buckuer had studied the Controllers plan moro
carefully, he would have remembered that 1t pro-
poses an increase of issue to ninety ninety-iye
per cent upon the lowest market price dur
ing the calendar or fiscal, year previous
TO the deposit II the contingency suggested by
Mr.. Buckner likely to arise from the opera
tions of the sinking fund laws should appear
he would probably the holders of four per cents
placing their own price on those securities, whether
or not they had been made avail able for bank
deposits under the Controllers plan.
A POINT OVERLOOKED.
Mr. Buckner also fails to say anything about the
probable fact that, if they could use their four
per cents as a basis for bank crcu alton in the
or nearly equal proportion TO value that those
bonds can be used in ordinary transactions as .
basis of security, the National Banks would
be less strongly tempted TO sell them
for the sake of the premium, aud
would be likely to retain their circulation.
The plain fact is Chairman Buckner wants TO get
rid of the National banks although he freely admits
that they form the best system, both for note
holders and depositors that the country has ever
seen.
"How does Mr. Buckner propose to ge' has
treasury notes into circulationp asked Con
troller Knox to-day. The Missouri statesp an
expects no difficulty on that account. Pay of no
bonds with them" he says. He continues: If tho
bondhOders refuse to accept the notes when tea
dered let the Treasurer exchange the notes for cola
and pay the bonds with that Make the notes ~
ceiyable for customs and other Government dues,
and they will be better than the National bank
notes." Mr.. Buckner proposes to authorize an issue
of Treasury notes, none of which shall he Of
smaller denomination than $40, 10 an amount
equal the National bank note circulation, and -
provide that the notes shall be put into circulation
from time TO time as may be required, to prev snt
a contraction of the currency by the retirement %
bank notes. He does not believe IN an elastic
paper circulation and wants the amount THEREOF
fixed by law, to be neither increased nor dLnn'
ishcd.
UNFoRMULATED PLAN OF CURRENCY REFORM
Mr. Buckner has still another scheme of currency
reform, which is not yet formulated, but which he
intends to offer in the House at distant day. In
brief it will provide that hereafter DO
greenbacks shall be issued or reissued OF
a smaller denominatins than $40. He estimates
that of the ega-tendcrs about fifty million dollars
are In one-dollar and twO-dollar notes, and one
hundred and sixty million dollars III sfye-dollar
notes If these $21O 900, 900 of egal-tenders must
be reissued, he contends that they shall be trans
formed into oes of $40 and upward. He also do
sires hat the coinage of gold double eagles shall 10
stopped and the coinage of smaller pieces be in
creased.
Now that the system of postal notes has been es-
tabllshcd, SO as TO provide the means for making
small remi tances by mail Mr.. Buclner thinks the
time has come to dispense with the snallnotes which
"clOg the channels of business" aud prevent the
general use of gold and sver-especlaly silver. In
Missouri he says, the country banks lind great din
Guilty in keeping on hand supply of silver sufft-
cient to meet the demand of customers.
AN INVESTIGATION PLANNED.
WASHINGTON, Dec. 28.-A dispatch from
Texas says that Mr.. Hurd of Ohio, will, Immediately
after thu holiday recess introduce In the House rcsolu