New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-12
THE RANKING SCHEMES.

| ,rho statements by Secretary Carlisle and Con-
,ro,lcr Eckcls regarding their banking plans
have moi made the matter much clearer 'hai II
v,s bofore II is plain that they do not agree
and the differences between them are more
serious than would have been inferred from
nerusol Of the Secretary's report. The questions
asked by members of the committee disclose inc
foc, that there were the same differences be-
tween the Dem )cratic members. besmes the
wider differences between all advocates OF the
State banking plan and the Kepuolicahs' Nv
nr,sncct that any agreement can be reached
| in Congress does not seem 10 De prieh'' o", wv
administration has taken hold of the business
rs If determined 10 force through the measure
II wants passed whether Democrats in Con-
! gress like il or not. 1t was not very S"cc'SS,
| ful in similar efforts at the long seSsloh' anu
will find the obstacles increased since the eiec-
| ton
| Mr. Carlisle does not add anything OF real
| importance 10 the information he gave IN his
| report He practically takes IL for granted tha'
| the requirements Of bonds against bank ISSUES
| "nreyents the elasticity Of the currency. Dut
fails 10 state what that phrase means, as every
body else fails The guarantee fund. together
| with the safety fund, Mr. Carlisle thinks, would
| amnly secure nOtchOldcrs. hut he was not pre-
| pared. in answer to Il question 10 say mat the
| security would he rs full as II Is now. COM
porinc the Baltimore plan and his own Ne
| noted tina, his plan required the banks l" Keep
| the safety fund intact, IL necessary by assess
mont the stronger banks carrying the weaker,
| and when asked il the banks would agree 10
| ,his he answered that 'ihc banks would speak
| .r,r themselves: ne was looking out for the
"iu;ercsts Of the Government. But ms IL not
= stotesman's answer 10 question which must
determine in the end whether the plan proposed
il wis. for the Government or not Evidently
If would moi be wise 10 propose what practically
all the National banks would reject. FOR I" hri'"
| several thousand banks ont OF notcissuinS Dusl-
ness is not exactly the short road I" prosperity
Mr. Carlisle favorS most strongly the removal
| Of all restrictions aS 10 Increase or d"cr'aS" OF
,,rr,ucv hv any National bank within the pre-
sclibcd limits. and places some stress on tue
| importance Of keeping on hand banknOtes III
order 10 facilitate speedy ISSUES when desired.
| Both suggestions are wise. Ms pan II
10 he adopicd at all: and were both adopted
with the existing law. the circulation would an-
! swer much more readily 10 the changing de-
| mauds Of business. But Mr.. Carlisles political
friends were those who insisted. IN their bilni
and boundcss prejudice against National banks,
that such banks should be dcbarred from free
retirement or free increase OF circulation. The
main ouestIon as 10 Mr. Carlise's plan Is
whether IL would not be practically rejected
/ bv solvent and prudent banks, ana on mar
ouestion he really casts scarcely any hght In
arguing for the prohibition Of banknotes less
than $40 each. he reasons that this would force
the people TO call for silver certificates when
are now piled mp in the Treasury. obviously
| because they are not wanted. The important
| fact that the small note circulation Is the only
one that IS profitable TO the banks the Secretary
did not discuss.
! As To the State banks. Secretary Carisl"
made II clear that he was yet as he ever mas
been. hostile to the National system. believing
that the taxation Of State bank issues il uncon-
slitutlonal but he thought 1t necessary 10 make
further use Of this unconstitutional law III or
der TO compel satisfactory statements by me
State banks To the Treasury and compliance
with the provisions Of his plan. On The other
hand he thought that every State bank actng
under This system would BE- perfectly safe and
reliable" This statesman from Kentucky mas
great faith. but experience does not give IL
much support. The ground OF hostility TO the
plan by Democratic State Rights Democrats was
suggested by Mr. Cobb, Of Alabama, VINO
thought that State banks could not exist under
such restrictions as were proposed, but MT.
| Carlisle held that such banks were necessary
for local purposes. and that the plan would
! give needed elasticity Of circulation In rural
districts Why natural expansion OF the Ma
tional system would not reach The same result,
so far as Is consistent with entire safety, the
| Secretary does not show.
Mr. Eckcls placed much stress on the neces'
sity Of having notes redeemed Instantly ana
with certainty which had led him TO propose
a deposit Of half the bank circulation IN legal
tender notes and he considered this absolutely
necessary He also thought that banks should
give something for the valuable franchise or
issuing notes with legaltcnder power, and that
the deposit Of so large a proportion would help
| the retirement OF Government circulation. lie
does not appear to have considered at all the
various provisions which render the plan OF the
Secretary mode Of destroying TIE National
and reviving the State bank system. and per
haps his own plan is in that particular not
much better.