New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-14
RIkER'S,
9th Ave. cor. I'D Street

az an ~
Il became evident that he did not approve me pe'"-
Ing schere were abandoned temporarily al ie"s'
IMITATION WITH NOTIFICATIONS.
-r, a., as q had one for the Carlisle scheme.
o,d esreciauv so for the advocates OF the state
hank feature Of It. TWO COMMUNICATIONS WIZ '
that ought to have some weight even WV" Wv
ma iority OF the Committee on BANKING ""'
renov one was from Vicc-Prcsident Ferris VI ''e
D,nk of New-York Of New-York city. He a'Vo-
.aa ,no snerdment OF the National Banking act
@, nc 70 nrovide for central redemption agencies
which in his opinion. would promote the eI"s"c''S
Of the currency. Referring to Section OF '''e p'"'
ing bill he SAID ,.,
mere tenks wbich have United states bonds on
deposit with the Controller should h9 IT, chsp,ers
cSpire or the deposited bonds are paid on section ,
OF Mr. Carsles bill seems IKE totG,nS o ,h
TO do what they have not been consumer "po"'
In commenting on Section 10 OF the BILL which
nrovides for the issue OF notes by state banks WIN
out the provision OF sinking fund. MT FERRIS Ha''
1t makes the bill simply an imitation measure .Hnle
tender notes and the provision to cancel Sn n.w
States notes TO the extent ten ri 80 per has the means
He closed his letter 10y saying:
As bill to- substitute National bank NOES ior
United States ISSUES 1t VIII be iur n home u" in
surers Of the circulation OF mnshtoV'i NV, s,,h
and the stimulant 10 organize STAT nahhS I '''
feet To United States inspection - duc-tiohho'''
EX.CONTROIIER HEPBt'RN's STATEMENT
The other communication was from Ex-'on-
.roer A. II. Hepburn. president Of the Third
National Bank of New-YOrk. lie not only 'ri'i-
cised several provislons OF the measure with se'''
ity but showed that Mr.. carliseS Interpretation
NJ the existing law in regard to bank reserves was
Incorrect and that the correctness OF on" OF MS
statements OF fact was also open TO grave 'ouo,
The substance Of Mr.. Iepburn's statement, whirh
f. entitled to grca. weight. Is herewith repro
duced.
Mr. Hepburn. IN his letter. Expresses strong OPP
position to the proposition 10 10 away with the
requirements that banks keep reserve MS hh-
derstand!ng Of the law does not tally with that
OF the Secretary lie calls attention to the pro-
vision OF law that II a bank s below iis reserve
the Controller may give noucr to make II good
and II IN. bank fails 10 do 20 for thirty days after
notification. ne may appoint n receiver. Ih"re
is sufficient fcxbllity in this provision h" says
ITO admit OF banks using their reserve nj all
proper times and under all proper circumstances.
| That they do II IN times OF panic II well known
| and that the Controller has never at snch
iuncture required them 10 make good their reserve
| ia equally well known nor would any competent
officer do So
Mr. Hepburn briefly and adversely criiclses the
| portions Of the secreiary's bill providing under
certain conditions for the repeal Of the J" per cent
| tax and that forblddIng II" issuing OF Naton"l
| bank notes In denominations under 'p' ana also
the provision FOR n safety fund oontr buted by IN"
National banks for the payment Of IN" circulating
| notes Of all National banks with unlimited nahill-
ties Referring 10 the provision In section 10 that
| State banks may take out circulation. N case
| they satisfy the Secretary and the Controller
certain points. Mr.. fiepburn asks; what IL there
TO prevent thoroughly bad bank from taking
out circulation. exploiting all they can and then
when the period II up and IN" time arrives when
| they must satisfy 'he Secretary ana Controller.
| going 10 smash They have utilized his teniI-
| tive period IN which TO DO all tho harm they can
| D. he 9TH a
| w,ll-manAgrd State bank may h"sitat" 10 take
| out circulation with possible 10 per cent tax
| hanging over them
| Continuing his comments upon other provisions
OF the seoretary's b.ll Mr.. Hepburn writes IN con
cusion: The Secretary's discussion OF the nnan-
| csl question ir general most cordially approve.
| and the conclusions he reaches b"li"ye arc wise
ana sound hut the details 81 the lin he has sub
| mliied IN my Judgment open 10 serious
| criticism"
| PRESIDENT CORNWEI.IS SOUND IDEAS
| The members OF the committee who partisan-
| OF state banks and who are always clamorlng for
| more money % kind had awaited the ap
| uoarance o. President CornWcll II the city Bank
| o. Huualo with CONSIDERABLE. impotence. lnasmuch
rs lie prcsldos Ger State bank and Is also pr'si-
| den, OF the Sew York state ElnE"rs association.
| they seemed 10 take It for granted that he would
AZ least auproVe OF the state bank feature OF the
Administrators scheme II did not take him long
| ,o-dav 70 lsaiise their minds OF that belief. and
| their sappon mcnt and chaffin wer" corresponds
ingly keen. President cOrn"el IL not man OF
| many words but ne II Il man Of sound IDEAS whch
are the fruit OF long experience. observation ana
| STUDY and ii thorough and Intelligent acquaintance
With the principles Of sound finance These were
| the propositions he laid down.
| /. The greenback and the Treasury note should
The Gnvernm.nt as regards money il to stamp upon
gold and silver their nnen"ss and weight Gov
/ crnment has no night 10 issue paper WIN n"'hih4
bnck OF IL and make IL legal tender 10 create a
currency, and by an act o, IA" toror "a" ts'r'
| trinslc worth All such issues NJ TO date have
note Of this cherncief Thsy are The O2ferm n,
! ment's notes To the extent ~ NDvl"D payable on
n"a IN are
The gold reserve They should be rad up
The bes, currency OF the best nations to-day Is
mainly ennk n1TI "h6n are rT ar men H"e ,n
posscssionH. representing the pronuc OF the brain
ana n" n n. Na,on what better basis for irc"
! Iat0n there he than thistle actual wealth OF
70 M the vacancy created by the retirem'ni OF
H. lesal,endcrS ana as fast as ihry are .s "rsa
to a percentage OF capital without bond security.
bank including the double liability Of stockholders
with guarantee fund made UP by al the banks.
the M noss as at to & is
the Baltimore plan. II Is simple. II Is good as far
z TO perfect the system further and work
out the complicated and delicate problems attending
this, impartial expert commission should be APP
pointed.
STATE BANK FEATURE WEAKEST.
Mr. Cornwell thought that II the first propo-
sitons enacted into law no further legislation
might be needed for many years TO come. He would
have the United States guarantee the redemption
OF the National bank notes and recoup Itself utl-
maely from the banks themselves. In commenting
upon the provision in the Carlisle scheme for q
deposit In lcgal-tenders OF 80 per cent Of the bank
note circulation Mr.. Cornwe said that It was 700
Indefinite; that 1T was IKE locking skunk In a
coset-he might get out. II was his opinion. also.
that the deposit OF 30 per cent was unnecessary
az a measure Of safety. lie strongly objected to the
State bank feature. and declared that u was tho
weak feature Of the whole scheme lie read
passages from Secretary Carsle's remarks before
the committee TO prove that even he had strong
douh reyardlnR lis necfadiiN lesIrahlliN. The