The herald., 1894-12-08
A BANKEk,s PLAN.

Mr. St. John Offers = Substitute for Mr.
Carlisls's scheme.
New YORK, Dec. AT meeting last
night of the chamber of commerce,
William P. 81. John, president Of the
Mercantile National bank, said it was
officially proposed that congress provide
profit to banks on bank notes by Q
scheme surrenderlng q profit of $10,-
900. 900 year to the people at large, in
United States notes. He characterized
the scheme az preposterous and submit
ted the following plan of relief:
First-Congrese to remove from our
standard silver dollar of 4l2.5 grains
9.10 fine, the single restriction OF its
legal tender function and provide un-
limited coinage for silver into this dollar,
ON the terms prescribed for gold.
Second--Issue to dspositora of gold at
the mint, II they prefer. instead OF the
coin to which they are entitled, coin
certificates redeemable on demand. Re.
quire these coin certificates to be re.
deemed in gold or silver coin at the con-
venience OF the United States. To
authofize the secretary of the treasury y
in his discretion to redeem them on re-.
quest in standard bars of gold or silver.
Third-Authorizs depositors of gold
coin and silver coin to receive the pro-
posed coin certif ificates therefor and for
bid oil further issuing Of gold certifi-
Gates, silver certificates and treasury
notes Of 1890.
Fourth-Until bimetallism 10 a real
achievement under this act, require
that all the geld and silver for which
coin certificates are issued, be received
in coin and standard bars for their re-
demption, except as next suggested.
Fifth-Authorize the secretary, in his
discretion and under regulations pre-
scribed by him, to direct the treasurer
of the United States tn receive interest
bearing bonds OF the United States, duly
hypothecated to the treasurer, and
issue thereon safe amounts Of the pro-
posed coin certificates as loans, the rate
OF interest on these to be at the rate of
the interest on the hypothecated bonds.
Limit this emergency issue" of coin
certificates by the requirement that the
aggregate Of coin and standard bars re-
served for their redemption shall not be
less at any time than 81 per cent OF the
aggregate sum Of all coin certificates
outstanding. 1t is explained that this
final provision would be availed Of in an
emergency for this reason.
(I-That owners of bonds would not
accept long time loans at cost of all
OF the interest in their investment and,
(2)-Borrowers OF per cent and per
cent United States bonds, hired to hy-
pothecate for such loans, should appear
when only real emergency made high
rates for money in the market.
If money panic threatened the pro-
posed enactment with . sharp contrac-
tfon Of our aggregate of money, our
final provision would empower the sec
retary of the treasury to issue 5000. .000,-
600 OF United States coin certificates
aRainst silver coin and bullion now in
the treasury and loan them at per
cent and per cent per annum against
United States inter st bearing bonds.
III lack of engraved coin certificates
threaten the secretary's immediate con.
venience, l suggest that boldness equal
ing the recent Issue OF interest-bearing
bonds will Immediately substitute silver
certificates therefor"
The proposition and remarks were
received without objection and filed
without action. The chamber adopted
resolutions adverse to any further tariff
legislation at present, on the ground
that conditions should be allowed to
become settled.