The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1894-12-19

1t is, In my opinion, poor plan to remove
the present safeguards thrown around circu-
lat1ng notes, and if any change is to be made
it ought not TO be at the expense of the de-
positor. By making the notes the first lien
upon the assets of the Banks, the present
security OF the depositor is greatly lessened,
which / think unwarrantable and unjuStitia-
bic. 1t would be an unjust discrimination
against the depositor in favor of the bill
holder. AS between the Carlisle scheme and
what is known as the Baltimore plan for a
safe and elastic currency" | much prefer
the latter. The former will, as matter of
course, be favored by the free silver advo-
Gates, as by restricting the issue of the pro-
posed bank bills to denominations not less
than $40, a vast horde of silver would be re-
quired to take the place of the present bills,
under the $40 limit. | see no particular OBJ
lection to this, however, except that silver IS
a cumbersome commodity to handle, and
would surely be unpopular with everybody,
when used in such large quantities. AS |
said before, | think the present plan is all
that can be desired, except as to the limited
elasticity of its currency"
[The Baltimore plan, mentioned by Mr..
Carnahan, is a scheme digested at the Con-
vention of the American Bankers Associa-
ton, held at Baltimore October IL, 1894. Its
underlying principles are laid down as fol.
lows: 81. A currency to serve public and
private needs, must be National, good
throughout the National domain. A per-
fectly safe currency can be provided without
stock or bonds as security.-3. No currency
can be elastic that is secured by bonds, since
the cost of the bonds exceeds the amount of
currency that can issue.-4. The first lien on
a failed banks assets, including stockhold-
ers' liability, together with a moderate safety
fund, affords ample protection to bill hold
ers and the Government that guarantees such
notes. ED
Hon. c. A. Reed, ex-Probate Judge of
Portage County, and President of the Second
National Bank:
at is subject fraught with SO much that
is of vital concern to the people of the coun-
try, that hasty opinions or hasty action in
the matter, should alike be avoided. / think
there are some good features in both the
Carlisle and Baltimore plans, but of the two
am inclined to regard the latter as the more
satisfactory to the people, although in some
respects the former might be more satisfac-
tory to bankers. / think that changes in the
banking laws can be made with advantage
to the present system that would have ten
dency to better the present condition of the
currency. The repeal of the clause requir-
ing the deposit of bonds to secure circulation
would, it seems to me, be proper thing to
do. l look with favor upon the guarantee
fund as proposed in the Baltimore plan,
which appears in the main to bea good thing %
Speaking of the amount actually required
for the redemption of the notes of suspended
or failed Banks for the past = years, the
Judge said:
"One three hundredth of one per centum
has been found to be amply sufficient, and in
the light of this fact, the security afforded
by the redemption and guarantee funds pro-
vided for in the Baltimore plan, would GER
tainly be abundantly safe and adequate"
w. HI. Beebe Cashier of the same Bank,
said he had not yet acquainted himself suffi-
ciently with the proposed measure to express
an opinion at this time as to its merits or de-
merits.
NJ. G. Garrison, late Cashier of the Kent
National Bank, and present Co. Treasurer
81 do not wholly approve of the Carlisle
plan. Aside from that, l regard the
present system as amply adequate for pres
ent requirements. When the time comes
that the Federal Bonds are all retired or re-
deemed, it will of course be necessary to de-
wise some new system; but for the present, l
believe in letting well enough alone"
C. w. Goodsell, formerly Cashier of the
First National Bank of Garrettsville, this
County, and present County Auditor, said
81 have not sufficiently examined the pro-
posed bill to give an opinion fully in all its
details. The only question with me is wheth-
er under the pending plan it would be suti-
ciently profitable for the Banks to take out
the necessary circulation to retire the pres
ent Treasury notes. Aside from that, l can
not see why the plan is not good one."
C. G. Bentley:
"Do not like the Carlisle plan, as do not
np.Sl Of q fqY Sfotn onE