Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-10-17
Thu baltimore Scheme.


mora rIan." the fact must not DC lost
sight Of that the bonds upon winch
the circulating notes OF the existing ma
,ionaI banks are based Will soon become
duo and payable. and those banks be left
without that basis. In other wor"s' So'"e
scheme Of providing nationai currency
must ere long be provided. we say ma
tional currency" because we take IL 'hal
even II state banks be estapIshe" 10
an the place Of the national banks. these
s.a,s hanks will be under Federal super
vision.
The baltimore plan has been received
with so much favor that we give again
its prlncipal features. We quote from
the Sun:
"Appreciatng the necessity ior rau'cai
o,,a,d,ncrt ~ the nresent national bank
system. If that system IS 10 coh'ihu'
the authors OF the plan primarily ad-
dressed themselves to the question OF de-
,,,einp a safe and satisfactory substitute
for m. nrosent basis Of the system, when
govcrnrn.nt bonds shall cease 20 bt a'alld-
bic or procurabls for the PURPOSE anu
tho further problem OF proE!dihh lol
necessary expansion OF the currency wren
an emergency may require IL ana us WIN
orawal when the emergency mas paS9-i
IN +, . manner absolutely safe for the
note-holder, and without risk 10 the pdhhs'
erhese two points the proposed pan az
,nirahIv covers. The FIST by substituting
for the guarantee Of the government 'in''
tho depcsit OF bonds. guarantee ruhh
such as experience mas shown ID De amply
sufficient 10 insure the rehthip''"h o'
every note Issued. and dn the last RESORT
tho guarantee Of the united banks OF 'h-
country who may be assessor l"i INV Pu'
ros. wb,ch Is equivalent almost TO the
guarantee Of the wealth anu T'souTCes
of the whole American people.
GO much for the absolute safety OF
tho notes issued under the proo'sci
amended system. All existing guarantees
and e.fegiards. examinations, penaities'
&c are retained. with the single ex-
coption of that furnished 10y the deposit
Of government bonds. ana lot 'iat -
substituted. in the case OF broken PAM
a first lien IN favor OF the note-horief"
upon All assets Of the bank. ana beh'ni
{, all the united wealth OF al the BANKS
In the country. subject to assessment ~
make good any deficiency.
The necessity for an elastic currency
IN times Of difficulty and troupe ai'u
contraction az credits IS met ny the
,rox.iston for IN emergency currency
which nay be issued In addition to that
ALREADY authorized. subject To the payment
~ a heavy tax sufficient to insure that
eurh additional currency viii only ~ -
sued when an actual emergency
exists. and be Withdrawn as soon
as the emergency has PASSED. Inc
normal amount Of currency which
each bank will b. authorized to
issue l. TO the extent Of ~ per cent. OF
its paid-up unimpaired capital The
emergency" issue may amount to an adj
ditional - per cent
'It is by these two provisions, especially
the last. that the proposed plan seems
To meet all the demands which are made
in any part of the country for more
money as Il f. called. for an increase
I'm the volume Of the currency which is
asserted 10 be Inadequate for the needs
OF the community.
at Is one OF the chief merits OF the
Baltimore plan that It has been tested
that II has been approved by experience.
In some Of it's essential features IL Is
modelled upon the Canadian system or
banking. under which there has been no
loss to note holders, no panics, no cur
rency famine Before II was submitted
TO the convention It had received the
enforcement and approva. Of some or
the ablest and most experienced hnanciers
in the country. In introducing IT, MT.
Homer nodestly disClaimed for the banks
of Baltimore any claim TO novelty or
originality. 1t Is he said, TO some ex-
tent patchwork. into which conservative
Baltimore has woven what seemed to 1t
TO be the safest and most practical OF
the many suggestions OF nnanciers upon
this important subject As such 1t Is
submitted for the consideration OF the
financial and business community. and
through the favorable action OF the con-
yention. as such it will be submitted TO
Congress for its consideration also.