The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-12-13
NEW BANK SYSTEM
House Committee Listens to
the Views of Bankers
and Economists.
MAKES A SCENE
President Cornwall Says Secretary
Carlisle's Plan Is Not
Strong Enough.

WASHINGTON, Dec. 13 1894 The
meeting of the House Committee on
Banking and Currency today in con-
tinuance of its consideration of new
banking system, was enlivened at the
very beginning by spicy little episode
in which Mr.. Walker of Massachusetts,
Republican, and Mr.. Warner of New
York, a Democrat, both members of
the committee, figured. Mr.. Walker OBJ
jected to hearing gentlemen who had
been summoned before the committee
for today until others had been heard.
Mr.. Warner said he thought the remarks
of Mr. Walker were reflection on gem
tlemen summoned to appear before the
committee today, although Mr.. Walker
probably did not intend it as criticism.
And this brought forth from the Mass
achusetts member a few remarks OF
objection. He said that the gentleman
from New York had criticized him, not
only at the present time, but several
times before, and he did not like it. Mr..
Walker also took occasion to say that
while gentlemen of the same party as
himself who had come before the COM
mittee had shown a disposition to an
swer questions frankly and freely, gen.
temen of the same political party as
Mr.. Warner had quibbled and evaded
and attempted to get away from the in
quiries.
The breeze passed away. however, as
suddenly as it arose, and Mr.. w. C. Corn
we'll President of the State Bankers
Association of New York was called.
There were a number of other gentlemen
prominent in financial circles also pres
ent, including George Gunton of New
York, the political economist; Editor
Rockwell. of the Engineering and Min
ing Journal; Representative JOS C.
Hendrix, President of the National Union
Bank of New York, and ex-Representa-
tive Warner of Ohio, of free silver fame.
MR.. CORNWELL'S VIEWS.
Mr.. William c. Cornwell President of
the City Bank of Buffalo, and President
of the New York State Bankers Asso-
citation, said his recommendations were
First-The greenback and the Treasury
note should be redeemed and cancelled.
The real business of the Government
as regards money is to stamp upon gold
and silver their f1neness and weight. A
Government has no right to issue paper
with nothing back of it, and to make it
legal tender-to create currency and by
an act of law force the people to take it
full value without regard to its intrin-
sic worth All such issues up to date
and Treasury note are of this character.
They are the Governments notes to the
extent of five hundred million dollars,
payable on demand, and in gold. They
have caused trouble enough already.
They are a constant menace TO the gold
reserve. They should be paid up.
Second-Ihe vacancy should be hlled
with bank notes. The best currency of
the best nations today is mainly bank
notes which are a first lien upon the
assets of the Dank. These assets are
product of the brain and muscle of mill
lions of people. They are the wealth of
the nation. What better basis for circu-
lation can there be than thiS-the actual
wealth of the nation?
NATIONAL BANKS TO ISSUE NOTES.
TO fill the vacancy created by the re-
tirement of the legal tenders, and as
fast as they are retired, national banks
should be allowed to issue notes to a
percentage of capital, without bond Sc
curity, the notes to be a first lien upon
the assets of the bank, including the
double liability of stockholders, with a.
guarantee fund made w by all the banks,
and redeem all notes as at present. This
is practically the Baltimore plan. 1t is
simple; it is good as far as it goes, ande
it goes far enough fer the present.
Third. To perfect the system further
and work out the complicated and deli-
cate problems attending this, an impair
ial expert commission should be ap-
TO RECAPITULATE.
l. Retire the legal tenders.
2. Let the national banks take out
notes under the Baltimore plan to re-
5. Appoint an impartial expert COM,
mission to perfect our currency sys-
tenn.
ENOUGH.
A number of questions We're put to Mr.
Ccrnwell to bring out his views on pro-,
posed legislation with reference to ma.
tional banks. He said he thought that
part of Mr.. Carlisle's plan for the re-
tirement of greenbacks was not strong
enough, as it did not retire them per-
manently. 1t was like locking a skunk.
up in a closet; he would get out all
the same. Mr.. Cornweu said there was
no profit in the national banking sys-
TEN. His bank was a State institution,
because that was the safest thing to
be, and the only reason it was not q
national bank was because there was
no profit in that system If national
banks were made profitable, his bank
would adopt the system Immediately:
there was no patriotism in the matter