The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-06
carlisle,s Currency Scheme.


There are now two plans before the
country for reforming the currency
namely, the Baltimore plan. proposed by
a convention Of bankers, and the plan OF
the Secretary OF the Treasury. They are
much alike in important particulars The
| general features Of each have been pub
lished. though there has hardly been time
yet for financiers to give the plan OF the
Secretary OF the Treasury very careful
consideration. The Baltimore plan is re-
garded with much favor By them. AS far
as they have expressed their preference
through the public prints they prefer that
plan for two reasons. First. because Il
provides uniform system OF banking and
currency, and second. because It does not
lock up so much of their capital
Briefly stated, the plan of the Secretary
OF the Treasury is that national banks may
issue national bank notes to the extent of
rs per cent. OF their paid in capital, pro-
vided they deposit with the Secretary OF
the Treasury legal tender notes. including
treasury notes of the issue Of 1880, equal
in amount to 30 per cent. of their circula-
AA0AAr hlSO D per cent DA tlAtAA NAAtAAd+AAoAA
for a safety fund. and provided they agree
that their circulation shall be first lien
on all their assets and on the personal liza
bility of their stockholders. The notes of
banks that fail are to be redeemed by the
government, and no notes of a less denom-
nation than SO are to be issued. State
banks are to be relieved Of the 10 per cent.
tax on circulation, provided that they COM
ply with the foregoing conditions. under
state laws, with the exception of the per
cent. safety fund.
The total national and state bank capt.
tai is now 1852 100000, and it is believed that
if the plan should be adopted it would at
once be increased to $1,000 100000 Under
the plan there could be a very consider
able increase in the circulation Of money.
The banks on capital of $1,000, 900,
would have the right to issue $780,
100000 in notes. From this there would
have to be deducted. however, 30 per cent.
which would have to be deposited in legal
tender or treasury notes, and the national
bank circulation, amounting to about $780,
600, 900, would have to be withdrawn. The
80 per cent would amount to sos, ZOO, 600.
making si3l 100000 that would be with
drawn, leaving a net gain Of about S3l9.-
100000, or a total of Sl.Sl9, 1900 available
for bank circulation.
1t is hardly probable that the plan of the
Secretary of the Treasury viii be entirely
satisfactory. 1t may be made the basis
of an accpetable plan of currency reform.
1t is probable that the prevailing senti-
ment will be in favor of a plan that will
put state and national banks on the same
footing, and that will be acceptable to
both classes of banks.
The plan would provide an elastic cur
rency because the banks could increase or
decrease the currency as they pleased. and
they would decrease it when it could not
be proftably employed, in order to avoid
the tax upon it. The chief objection bank
ers are likely to make to it is that it locks
mp more of their capital in legal tender and
treasury notes than is thought to be
necessary for safety.