Mexico weekly ledger., 1894-11-29
The Baltimore Plan.

At this time the financial system
of the United States is receiving a
great deal OF attention. The ablest
financiers in both parties are sug-
costing changes. What is called the
Baltimore plan is receiving fav'
orable notice from all parts of the
country. The following from the
New York Times (Democratic) ex-
plains this system briefly:
The call for a loan Of $50 1000 600
would have very little Importance if
it were not necessaryito'restor the gold
reserve. In fact, but for the need of
meeting any possible demand for re-
demption purposes there would be
plenty of money IN the treasury, and
the business of the country would go
on without the slightest reference to
it. The gold reserve Of a hundred
millions to which the public mind is
attached must be restored and main
tanned, not merely that the treasury
shall be able to meet all demands, but
shall be known to be to able meet
them. That Is all there is of it. Every
other consideration is subordinate.
irrelevant or trivial. We have some
$500. OOO, 900 outstanding in Govern
ment paper, every dollar of which
must be kept at par in gold, and
that means that every dollar of Gov
eminent obligation must be paid, if
demanded, in gold.
The proper substitute for Govern
ment currency is well guarded bank
note currency. The best plan SO far
submitted for this is what is known
as the Baltimore plan. In its essen
tial features it possesses absolutely
all the advantages of Government
paper, avoids all its risks, and offers
benefits peculiar to itself. Briefly,
that plan provides for the issue of
bank notes to the amount of IS per
cent. of the paid in capital Of the
banks, to be guaranteed by the Gov
eminent. and the Government to be
secured by a fund raised by taxation
and by first lien on all assets of the
banks. A check on over-issue is an
added heavy tax on the notes beT'fo
so per cent, and up tc <olieape5ond
of the capital. VIZ. 70 10 per cent
ity or advar. ~, nat possible seeur-
paper han th4.age does Government
thi. lave that would not be had by
letsse notes? They would be safe.
, for the Government guarantees them.
Their volume would be ample, for
the maximum limit is high. They
would be uniformly current in all
parts of the country, as National bank
notes or greenback now are and foI
the same reasons. And beyond
these advantages are others that nc
Government paper a have. In the
first place, expansion would be easy
and certain whenever needed, be
caus. 1t would be profitable. Con
traction, Wnerr- tha need ceased
would follow of itself, beCausa tina,
would then be to the interest of the
issuers. Above all-and this is the
most important fact of all-the safe
ty of the currency would not depend
on the treasury or on any action o
Congress or the Executive or On pc.
litical action of any kind. The mos
dangerous and most costly element
in the transaction of business in the
United States would be done away
with, and every man, from the
smallest retailer to the most exten-
sive dealer, from savings bank de-
posItor to the greatest capitalist
could make his calculations without
fear that they would be upset by
forces be can neither control nor es'
innate. Such a change would be
beseficent revolution, and all sensi'
BILE and honest men should do theil
utmost to aid in bringing it about.