New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-06
WHAT IS THOUGHT OF IT HERE.


CRITICISM OF CERTAIN FEATURES OF HIS PLAN.
Many bankers and others in Wall Street who at
first were inclined to indorse the proposal of Sec
rotary Carlisle to reconstruct the currency system,
have upon further deiiberation. found many points
in the plan which are not considered sound finance.
To issue paper money without security held Will,
they say result In large emissions which are likely
to end in imitation. II would not be WISE they THINK
to substitute in place OF Understanding bonds as
security for banknote circulation. 80 per cent In
legal tender and 20 per cent In general assets.
There are many points in the plan which re-
qulre careful study that many bankers are not yet
prepared to give an opinion on it, but 1t appears,
from the sentiments expressed by many leading
financial men. that the plan submitted by the Sec
rotary and ndorsed by the President will fail to Sc
cure the united support OF the banking community
in this city Many bankers desire a change from
the existing conditions. but they do not think that
the Secretary of the Treasury has yet found the
most practical way of improving the currency
f. o. Leech, ex-director of the Mint and vice.
president of the Union National Bank, commends
some points in the plan and believes that the Sec
rotary is wise in bringing the subject of currency
reform to public notice. He has this to say, how
ever of some of the features Of the plan:
The proposition to abolish the legal reserve which
National banks required to keep for protection
Of depositors would. in my Judgment be no,
argument that every prudenty managed bang
will keep sufficient reserve is true enough BUT the
trouble is that experience has shown that they
are not all "prudently managed" and unless there
Is a strict legal requirement by which those not
prudently managed can be held 10 accountaointy,
the tendency would be constantly to make the
most possible with your money; especially , Dy
banks not located in large Clearing House cites
where publicity is given to bank statements Who
would know whether the state National BANK OF
Oshkosh had one-quarter of its deposits IN actuai
money or one-one- hundredtn!
The protection OF depostors Is OF the f h I'M n
the safeguards. The Secretarys idea that Ma
tional banks are prevented by legal requreme aii
from using the reserve in EMERGENCIES Is NOT Wen
founded. The theory Of the law Is that the banks
in ordinary business should keep certain portion
OF their deposits in actual money; but temporarhy
in emergencies. the reserve may be entr ,
upon. there is no legal punishment But to al az.
low every banker. State and National 10 say TOT
himself what amount OF actual money he could
get along with all the time would be to open me
door wide 70 wildcat banking. especially as nave
said. away from the great money centres
In regard to the manner OF redeemlng the notes h
I think 1t would be very much wiser TO nave tne
notes redeemed by the General Government than
the banks and frGny would
be amply protected. 1t would, In q certain sense,
be sem Value ee in G the eyes Of the public
1t will certainly be very inconyenlent ana eNpen-
and | can see no advantage In this change In
existing law. -..,
fund or course 1t Will be readily understood tna
the object is to 't!e up legal-ender notes In TINS
keep one-quarter OF their deposits IN cash anu 2; -
per cent OF their circulation In the treasury IN
IN" n large amount OF money. ana am one OF
those who believe that there cannot be too mucn
good money in circulation. II seems TO me that II
would be better 20 authorize the Secretary 70 re-
tire the legaltender notes by the sale OF the Gov
ernment's credit. or by surplus revenues. as new
circulation Is taken out by the banks. ana 70 DO
away with the provision of a guarantee tund.
I believe that under proper safeguards notes
might be issued by State banks. but In practice u
viii be very difficult 10 enforce such provision
AMI as State banks under existing law be-
come National banks. II seems TO me X would DE
hotter To confine the issue to banks holding Ma
tional charter. -. A.,,,,
I think that the provision that no bank note should
he OF less value than so Is wise and VIII PROVIDE
vacuum in this growing country for the use OF an
or silver currency and eventually the utilization py
coinage OF the silver bullion which we now mold
In the Treasury.
Harvey f. Fisk OF Harvey Fisk & Sons. said;
The plan is crude. and would not indorse H. II
the pan went through the price OF bonds would
undoubtedly be affected. The favoritism shown 20
state banks is a most dangerous feature IN tne
man There is no chance OF the present congress
considering the plan.
w w Sherman. president OF the Bank OF COM
merce. said
do not wish 10 criticise Secretary Carlisle. a.
tho same time am not in favor or ms recon-
mendation | can nothing In MS pan WHICH
is an Improvement upon the present system