The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-12

Saiety-T'here Has Been Too Much
OBSERVATION-DISCLOSURES Away with
State BBrks.
Washington, Dec. 1.-THE hearing before
the House banking and currency commit
tee on the crestion Of the reorganization
Of the currency laws was resumed today.
Among those present were Horace White,
of the New York Evening Post; G. q.
Homer of Baltimore, chairman of the
committee of national bankers to formu-
late the so-called Baltimore plan, and
r. E. Hepburn, of New York ex-comp-
troller OF the currency. These gentlemen
represented the currency ideas embodied
In the Baltimore plan.
White Opens.
It was expected that Secretary Carlisle
would present his currency bin and con-
tinue his statement. but as he was late.
White opeued the hearing. In answer
10 questions he stated he had drafted a
Hill on the lines of the Baltimore plan
and It was arranged that this would be
placed iore the committee. Whites
statement vas read from manuscript and
was a car uily prepared review OF the
banking question.
Mr.. White began with reference to the
balumore plan. calling attention to the
laet that II deals with. only one part Of
.culating notes, a function not indispensa-
bic. but valuable to the people.
he held that it was the paramount right
ana duty OF the. state to pr7yide for the
SAFETY of the community. Hence it may
prescribe the regulations under which
circulating notes shall be issued, or gum
powder be stored, or liquor be sold 1t is
not bound 20 give equal privileges TO all
persons TO exercise these functions
The first half of the address was de-
faf
banks in this country. and particularly
the New York safety fund system of the
extolled at length. The latter part Of
Mr.. Whites address was devoted ex-
clusively TO the Baltimore pian- Referr-
ing notes first lien on the assets of the
bank, he said:
Safety of Depositors.
2 There is an outcry against this feat
ure from some people who say the poor
deposltors viii suffer. But what is the
condition of the poor depoSitors now?
Are not notes first lien on the assets?
Can any depoSitor get any part of this
Iund until the notes are paid in full?
ever fan short of paying the notes. could
the dSpositors get any part of the re-
naming assets until the par value of the
notes was dedUcted2 OF course not"
Mr.. White said he saw no OBJECTION to,
the repeal of the 10 per cent. tax on state
national banking law, and proviriinS the
means of enforcing these requirements are
lodged with the comptroller of the cur
rency. But mere power of observation
without The power of enforcement, he
said. he considered unwise. unsafe and
sure to cause embarrassment and to end
He considered it desirable, though not
indispensable, that the government shall
continue as now, responsible for the
redemption of bank notes
me baltimore plan simply takes the
law as il finds it. II makes a change in
he meaning of reimbursing the govern
Bent for the redemption of failed notes.
The only question is whether the sug-
gested change puts the government to any
greater risk. This is a question of mathe-
mates 1t is to be answered by the tables
OF bank mortality in the past thirty-one
years: Taking up another branch of the
question, Mr.. White said:
Guaranteeing Notes.
1T has been said there is no more rea-
son why the government should guar
antee the notes of a bank than those Of
merchant, a manufacturer or a farmer.
This would be true if the notes of the
merchant, the manufacturer and the far
mer were allowed to circulate as money,
but not otherwise"
MIR. White announced himself in favor
of the retirement of legal tender notes,
notwithstanding the retirement is not
included in the Baltimore plan. He would
have them eXtInguished, not merely tenn
p0rsT.ly withdrawn
My reason he said in conclusion,
for desiring the extinction of the legal
tender notes is that they are a constant
menace to business in that they nave
kept political parties in hot water for
thirty years, and have INSTRUCTED prog
s>ess ana reform.
Merely His Judgment.
Mt. Walker. of Massachusetts, asked
Il the bin presented by Mr.. White would
secure a safe and uniform currency.
1T win have that tendency said Mr..
THAT is not IT," said Mr. Walker I'VE
do not want TO provide tendency to-
ward a safe currency, but the actual
Il am not omn6scient." suggested Mr..
White He added that in his judgment
the bill would secure an elastic currency.
Secretary Carlisle came in at mis- point
and was an interested listener to Mr..
Whites answers to questions as to the
want of elasticity in Mr.. CarEsle's cur
Mr. warner. of New York. asked what
restrictions should be imposed on state
Mr.. White said ne would subject state
banks to the same regulations as those
imposed on national banks.
Mr. Cox, of Tennessee. asked II That
would not do away with the state banks.
Mr.. White answered that 1t would he
said he believed in one uniform banking
system. not state systems, there belnS
forty-four states.
rrent begun yesterday. He presented the
bill he had prepared EMPLOYING ms plan
of currency revision and read II 60 the
committee, commenting on 1t as ne pro-
ceeded.
CarIisIe's Bill.
In the first section, all acts regulat-
ing the deposits OF United States bonds
TO secure circulating notes of nalonal
banks are repealed. The second sec
ton provides for the issuing of circulat-
ing notes to a national bank equai To
70 per cent of the paid and unimpaired
capital upon depositing legal tender
notes applied for. These elrculau dls
notes shall be in denominations of $40
and multiples of ten ana shaH De uill-
form in design.
Section three levies duty of 4 per
cent for each half year upon the aver
age amount OF a banks notes circula-
Section four provides for the mode
IF redemption and retirement of
Banks circulation.
Section five creates the safety fund
for the prompt redemption of circulat-
ing notes and failed national banks.
Each bank shall pay to the United
States treasurer in the months of Janu-
ary and July in each year tax of a
ollarter per cent for each half year upon
the average amount Of its circulating
notes outstanding until said fund
amounts TO per cent OF the total
amount Of national bank notes out
standing. and thereafter said tax shall
cease. A bank retiring or reducing It's
circulation shall be entitled to with
draw any part of its fund. The mode
of procedure in case OF a pank ldllure
is outlined.
Section six allows the secretary of the
freq s,,rv TO invest money belonging to