Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-11

Eckles appeared and made his statement.
Nothing, he said, ought 10 be done
by Congress looking TO o change
of the present banking system,
unless the resultant should be beneficial
both TO the banks and the public. The ex-
tent OF the banking interest represents IN
capital S6S0,OOO, 600, in deposits S3, 400, ,OOO,-
coo and in depositors about 100000. Such
enormous interests being involved, any
new system to be inaugurated must az the
outset command the confidence OF the peo-
pie. The national banking system now iu
vogue might be said TO be a national habit
Most of those who made use of it knew
little or nothing of other systems. He
thought, therefore, that nothing in the
present system should be altered unless 1t
could be improved upon to the promo
ton of the business interests Of the
people In this country the note issuing
function was an incident, the deposit ac-
counts the principal. In other countries IT
was different. In France. Germany and
Russia
TIE ISSUING FUNCTION
was paramount. In England. ireland
Scotland and Canada the system more
nearly approached ours. The scheme
which be had suggested in his report, he
said, was intended to disturb as little as
possible the existing order Of things. In
order TO make any system successful the
4 Ote issued must be Immediately. not ulti-
matefYA convertible into coin. This was
the first consideration.
After this Gs,s,e, if the banks could be
given the power to-exp2nd the currency IN
times of stringency, the tive main objects
OF a currency system would Ge OBTAINED.
II his system he had proposeo'@ oO per
cent. deposit upon which bank notes shSulu
be issued. To the extent Of the deposit
those notes were absolutely safe The
other fifty per cent. would be secured oy
safety fund raised by proper taxation.
Frankly he did not consider such deposit
necessary. But the exigencies of the war
made il necessary. The legislation OF that
period had created a currency which IN
and Of itself in his opinion, could not have
maintained itself had not the government
endowed il with q legal tender quality.
The existence of these legal tenders was
to-day, be thought, the greatest danger to
the credit of the United States at home
and abroad. Compared TO it the defects
of the banking system were only an lncon-
venience.
Undoubtedly the manly to do, he said,
was 10 redeem and retire those notes. The
authority TO do this had once been given
Secretary Mccullough, but it had been re-
scinded. II could be done now out Of the
surplus revenues or
BY MEANS OF A FUNDING BOND.
To-day under the national banking act
Sl5O, 600, 600 of legal tenders held for reserve
fund were taken out Of circulation. Under
the system be proposed so per cent of the
circulation would be deposited in legal
tender for which circulation notes would
be issued dollar for dollar. This would IN
no wise increase the volume of currency.
The operation of this plan would be TO i'm
mediately withdraw $40, 100000 OF the
legal tenders from the $3.50, 600, 600 of the
legal tenders now used to drain the Treas
ury of gold.
As to the question of elasticity, elastici-
ty was governed by two things-the de-
mand and the immediate converubility of
the notes. To the extent of 80 per cent. of
the notes, the currency would be elastic.
This plan would relieve the Treasury of
S34O. .OO0. 900 Of greenbac and furnish an
elastic currency for the people and profit
able currency for the bank. He argued
the inherent right OF the government TO
make issues of legal tender, but questioned
its expediency. AS to the safety Of the
notes, history would repeat itself.
THE BEST ASSETS OF ANY BANK
or other financial institution were redeem
able paper. This was apparent during the
panic last year when bonds were hard TO
dispose of, while convertible paper was
acceptable everywhere.
A 4 O'Clock the committee adjourned until
tomorrow, when MIR. Hepburn, Mr. Ho-
race White and others, OF New York, will
be heard.