The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-13
ALL in ONE CITY.
Center the Issuing of Money at New
York.

York.
WASHINGTON, Dec. IA letter was
received from LYMAN j. Gage, promi-
nent banker of Chicago. at the opening OF
the hearing of the House Committee on
Banking and Currency to-day. Referring
TO the recommendations of the President
and the Secretary of the Treasury, Gage
said:
Agreeing with the criticisms of these officers
OF the Government as TO the present weakness
of our situation. and the great desiraoity Of
separating the Government from direct respon-
sibility Tor currency issues, l am persuaded
that the country Is not ready to accept III ir
recommendations. Any change in the method
should be so simple hat all can comprehend it,
and it should be seen thar the incidental eff
fects would not be in any direction distui bling
10 trad commerce or industry. i believe the
Baltimore plan" carries the true principles OF
credit currency. but We cannot reach it by one
step, and years may intervene before it can be
realized. Meantime, The way for the Govern
ment to step out of the currency business
is plain: Authorize the issue OF S25o,o00,0o0
In 213 per cent bonds. payable at such
time as Congress may elect (twenty-
five years is desrablel TO be offered 10 sub
scrbers at par; accept in payment United
States lega-trnder notes or treasury notes,
bH6 SdUlo 10 Do CduCclcuJ tuo u6llOudI
bank law so the banks can obtain note issues
to the face value of the bonds deposited as
security for circulation and reduce the taxes
on circulating notes to IL Of per cent. This
done, national bank notes would make good
the vacuum caused by the retirement of Gov
eminent notes. In fact there would be some
expansion under it. TO be followed later by
some cont action through the forced redemp.
tion of bank issues. If it be true as some
o1o ~ he nj TING n INN in
the United States is larger than can be MAIN
ta1ned. and the outflow of gold is natures
method of equaiZing things The problem Is
this: To take the Government out of the note
issuing business-first. without contracting the
currency In the process. and SECOND, without
Inviting expansion. Score airy Carlisle's plan
is in The danger involved under the last sugges-
ton.
Besides the above suggestions to receive
serious consideration, there are some features
OF The national bank act that would require
amendment in order to give note-h0lders fair
and cheaper access to points of redemption
than now exist. RI demptlon agents in cities
should be restored
a letter was also read from Edward n.
Gibbs, treasurer of the New York Life
Insurance Company, approving the ma
tIonal bank system, with some mOditica-
ton.
George c. Butler of New Haven, Conn,
presented currency plan differing from
that of the Secretary and the Baltimore
plan. Its features include note issues up
to so per cent of banks capital, and the
removal of the Comptroller or the Cur
rency to New York. where he is to have
control of specie reserve made up of %
rer cent of the notes issued. Buffers
plan proposed board Of bank officers in
New York, presided over by the Comp
troller of the Currency; also, to erect
suitable building in New York for cur
rency bureau.
Butler was questioned at great length
by every member CT the committee, show
ing exhaustive familiarity with practical
banking. He said the requirements of
Secretary Carlisle that all national banks
guarantee the notes Of each bank would
nullify the law. Banks would not accept
such unknown responsibility. There
might be no real risk owing to the safe
guards provided by Carlisle, but boards of
directors would never vote to accept the
risk.
Butler and Horace White of New York
were further questioned after recess. Corn