The times. [volume] (Richmond, Va.) 1890-1903, 1894-10-13
ANEW NATIONAL CURHBNCT.
Ey-ConpiroIjsr spborn'. Spse'"
tbe Baltimore Plan.

ANEW NATIONAL CURhBHt''
Ey Comptroller epbUrn's Spee'"
tbe Baltimore Plan.
At the Bankers Convention, ~ D nisn
more on Thursday, the Ballilho. ~ ,inpnai
currency was seconded by Mr. a. u. h ald
burn. ex-COmptroller OF the Cui ,rsirj Va.
AT present president OF the thsa H. -,
,tonsi Eank New York. He quoted let
ters and statistics from NoniP e.. e.,
Eckels in supporting his arguments ior
the adoption OF the plan. o,,,,fction has
become ingrained In the minds oil many
thar there can be no increase IN our CIR
culatIng medium except IL comes W. o"s 80
SILVER legislation. What are you going 10
10 .ar ne action OF the bankers OF Baiti-
more SO ably presented 20 this eonVen-
tIon and Tor which they deserve the
thanks of the nation, Is q uniieiy aLsM va
With the Republicans OF Caiiforhia anu
tba Democrats OF ohio demanding free
coinage OF silver at the ratio OF 10 10 j.
and varying shades OF the same seiiit i-
ment finding public ana parry snp1 i've
i'm different localities, II Is imperative
that this convention Of bankers 1ofIhuldte
the principles upon which they pelleVe lhe
currency OF the country should De iouha
ed. oor, chat IN
addition TO the more serious damage "
general business and our crealt as ha
ton, our silver legislation represents 49,. a
loss TO the people OF ms ss,-o cQ qsn ~ mat
depreciation In value OF $40, I1V.ad'. Ia
round sum represents the price OF ~ ~
homage to silver. Contrast THIS VIII tIo
amount paid into the Government lt teo,,-
ury by national banks as YAK vi '''~'
lation and deposits. ,,...,,,o,
Both the l,lanA law and the sherman
law Injected into circulation HNeu
amount OF money monthly, WITHOUT re s5so,sf
TO wants OF commerce. iio" "',i5 ,,6f in
crease such amount one J0t or utlIe, h i,,t
since the Government can only put out
money in payment OF debt or III eACiIaIis.
for value this criticism OF aDsOIule MdI'
mental currency. II can never DE re-
sponsive to the varying wants oI Coa'r
rnerce. / believe that all paper, uIohJS'
under proper restrictions, shouid pe L.
can an elastic currency be obtained our
present bank-note currency possesses az
the good qualities except elastlclty' NJ
currency secured by stock or bonus ca 80
possess that qualify; now IN H. Ii"v ,nust
pay $4,000 for bonds and deposit re,
demption fund Of $500. And, instead OF
increasing their means for helplns t neli
customers and the public by the y dHsdL
ton. they lock up 1880 and qinlinIs1
their power to aid the public by that
amount. 1T, $40. u, ,ee,,od
against credit. Banks must nave PoMv =,
thus 10 create money. IN no other way
can currency be elastic. In no other way
can II meet the wants OF commerce
From the very nature OF thlngs the Wv oF
! eminent cannot give such a currency
| The banks can, and the banks only can,
with prudence ana safety, DC ailo"eu ~
! Had the Canadian law obtained In THIS
country In 1893, the National banks couId,
under its provisions, nave ADDED over
IA aln IA 10, bA v,
! and with such "A lazy currency famine
| would hardly have been possible.
| IAN elastic currency Is needed. not only
| in times of distrust, but in the course OF
| ordinary business. The harvesting sol
| the cotton crop calls FOR an extraordinary
| amount of money in the cotton belt. cur
rency is brought from money centres 10
| supply this need. Currency in that Sec
| tion is expanding
| "J1nder the system proposed by the Bal
| tmore bankers, the banks in the cotton
/ region could largely supply this local
| demand. and TO such extent save the eX-
| pense of expressing money from money
| centres The cotton crop having been
/ moved, the demand for money lessons.
| and by the memorable law of supply ana
| demand, the currency contradictions
| back to money centres.
"According 10 Comptroller Eckels, an
| annual tax of two-Hfths Of | per cent
| would suffice to defray all expenses and
redeem every note OF every failed bank
| for the past thirty-one years. n per
| cent. guarantee fund IS certainly auple
| TO protect the Government against loss
| in guaranteeing the redemption Of notes
| under the proposed law. =
"Under present laws the Government IS
| bound to redeem all notes of all failed
banks and is given a prior lien upon
| the assets of the failed banks TO reim-
| burse such paymnt. With this law in
| force, and without bonds 10 secure circu-
lation. the Government would, during this
| thirty-one years, have lost not exceeding
| 81 1898 An annual tax OF three-hun-
| dredths of / per cent. upon circulation
| would have covered this loss. Surely a
| per cent. guarantee fund viii make the
notes proposed in this plan perfectly Sc
| cure.
I'm respect to the proposed circulation,
| there can be no objection 10 a State bank
| receiving circulation, providing, as n con-
| dition precedent, they are required 20
| submit 10 examinations by the Comp
! ports required annually by him Of the Ma
| tional banks, keep the same reserves,
have the double liability of stockholders,
submit TO all supervisory regulations.
| and conform to all requirements so as to
| place the circulation issued to state banks
exactly on par. with respect to safe
| guards and security, with circulation is
| sued 10 National banks.
| Should Congress provide at any time
| for the retirement of the greenbacks or
| Treasury notes, contraction may be pre-
! vented by increasing the percentage Of
bank-note circulation. All experience and
| all statistics prove a currency issue equal
to par of unimpaired capital is absolute
/ ly safe.
| I'VE want legislation that will enable
| the banks to do, under proper restrictions
| and wholesome safeguards, what private
| firms and manufacturing corporations did
| do. without restriction, except the possi-
| BILE liability Of the 10 per cent. tax. The
| issuing Of currency is a banking pre-
| rogative. and the interests Of the public
| demand legislation that will enable the
banks 10 afford such relief when necessa-
rxrtt