The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-12-20
BEFORE THE BANKING COMMIT
TEE.

| Washington, Dec. LITTLE hearing he
fore the house banking and currency COM
mitteG on the question of Il reorganization
of the currency laws was resumed i'll the
room of the ways and means committee,
but did not move very promptly. Among
those present were Mr.. Horace White of
the New York Evening Post, Mr.. G..
Sherar of Baltimore. chairman of the
committee of national banks to form the
| late sO-called Baltimore plan, and a. b.
| Hepburn of New York, eX-comptrOller of
the currency. These three gentlemen rep
resent the currency ideas embodied in the
Baltimore plan, and they were present
| for the purpose of urging the merits of
| that plan. 1t was expected that Secre-
tary Carlisle would present his currency
| bill and continue his statement of yeSter-
| day. but as the secretary was late in ar
irving, Mr.. White opened the hearing.
In answer to questions he stated that he
had drafted bill on the lines of the Bal
timore plan and it was arranged that this
should be placed before the committee.
| Mr. Whites statement was read from
manuscript and was carefully prepared
review of the banking question Mr..
| White began with the reference to the
! Baltimore plan, calling attention to the
| fact that it deals with only one part of the
banking business, that of issuing circulat-
ing notes. function not Indispensable,
but valuable to the people. He held that
| it was the paramount right and duty of
the state to provide for the safety of the
community. Hence, it may prescribe the
regulations under which circulating notes
shall be issued, gunpoWder stored, or
liquor sold. 1t is not bound to give equal
privileges to all persons to exercise these
functions.
The first half of the address was de-
voted largely to historical review Of
banking in this country and particularly
the New York safety fund system OF the
days prior to the war, which MIR. White
cxtolled at length. The latter part of Mr.
Whites address was devoted exclusively
TO the Baltimore plan. Referring to the
fact that it makes the circulating notes Il
first lien on the assets of the bank, he sad:
There is an cutlery against this last tea-
ture from some people who say that IT
affects the poor depOsitors. But what Is
the conditions of the poor depositors now
Are not notes first lien on assetS!. Are not
security bonds part of the assets! Gan
any depositor get any part OF tins 1und
until the notes are paid in full, and III
supposing that the bonds could ever 1all
short of paying the notes, could the ae-
positor get any part of the remaining
assets until the par value of the notes
|
White said he saw no Objection 10
tbp repeal of the 10 per cent tax on stare
hank notes, provided the state banks
romnly with all tahe requirements OF the
national banking laws. But mere pow
or of observing without the power oil en-
forcement. he would consider unwise,
unsafe and sure to cause embarrassment
} and to end in disaster.
He considered as desirable, though not
, INDISPENSABLE, that the government slidll
continue, as now, responsible, LOT IHe
redemption of bank notes; Inc baitit
more plan simply takes the Iaw as 1t
6nds # II makes a change in the man
ner in reimbursing the government 10 Tor
the redemption of failed notes. Inc
only unestion is whether the suggested
change put the government to any greater
risk. This is a question of mathematics.
II Is IN he answered by the tables OF BANK
mortality in the past 81 years.
Taking ND another branch OF the ques,,
+ion AIR White said: 1t has been Sald
that there is no more reason why tne
government should guarantee the noteo
of n bank than those of a merchant I
manufacturer or farmer. ms n' "1
ho trua if the notes of the merchant anu
farmer were allowed to circulate do nv"
pv. but not otherwise. ,c. e,-,r
Nv White announced himself IN 1aVor
Of ~" the " retirement of the legal tender
notes. Notwithstanding the retirement -
n llot'i included hide in the Baltimore plan. lie
w ,,T d have them extinguishd;; not mere
| " temporarily withdrawn. Inc Din; Teas tbe
~ Soid i'm conclusion. for desiring tne
nytinction of the legal tender HolTs =
that they are n constant menace " JUS .;a,,
ness ness they have kept political parties S nh
in hot water for 80 years anu Hl'c VI"
ST structed progress and reform; ..,,,on+
At the close h Of h MT ON the the lines Of the
Mr. Homer stated that the committee ZEE
If national banks had not yet formulated
'n Mr. Johnson of Ohio asked Mr.. Whites Whit IS
oninion of Secretary Carlisle'S currehc!
plSMT Mr. White answered that he did not not
1,in MI tbe secretary's plan would give the
th Inntio currency il sought to secure. 1t