The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-15
THE CURkkNCY nEARINo.



Objections TO Carfisis's Pian-The Conn
~itt~e Dispes~d an Hurry the Bill.
Washington City. Dec. ls.--At yester-
days session OF the banking and cur
rency committee William II. Cornwall.
president OF the City National Bank Of
Buffalo and president OF the New York
State Bankers Association. said his
recommendations were as follows:
First-Tlse greenback and treasury
notes should be redeemed. then can
celed. The real business OF the govern
ment as regards money is to stamp upon
gold and silver their fineness and
weight A government has no right 10
issue currency with nothing back Of it.
and then 10 make 1t legal tender-to
create a currency and by an act OF law
force the people 10 take its face value
without regard to the intrinsic worth.
All greenbacks and treasury notes are
OF this character They are the govern
ment's notes 10 the extent of $500. .eoo,0 600.
payable on demand and in gold. They
have caused trouble enough already.
They are a constant menace to the
gold reserve. They should be paid UP.
Second--Tale vacancy should be filled
with bank notes.-the best currency OF
the best nations today is mainly bank
notes. which are first lien upon the
assets OF the bank. These assets are
commercial possessions. representing the
product of the brain and muscle of
millions OF people. They are the
wealth Of the nation. What better basis
for circulation can there be than this
the actual wealth of the nation? To Till
tire vacancy created by the retirement
Of legal tenders. as fast as they are re-
tired national banks should be allowed
TO issue notes to a percentage of their
capital. without bond security. the
notes to be a first lien upon the assets OF
the bank, including the double liability
of stockholders. with a guarantee fund
made up by all the banks. the govern
meut continuing 10 guarantee and re-
deem all notes as at present. There
is practically the Baltimore plan. IL is
simple and good as far as 1t goes. and
II goes far enough for the present.
Third-To perfect the system further
and make out the complicated and deli
cate problems attending this, an impair
tial expert commission should be ap-
pointed"
To recapitulate;
''First-Retire the legal tenders.
"Second-Let the national banks take
ont notes under the Baltimore plan to
replace them.
''Third-Appoint an impartial expert
commission 10 perfect our currency
system"
Chairman Springer read a letter from
a T. Hepburn. Of New York, ex-comp-
4
vocates OF the Baltimore plan. Mr..
Hepburn wrote as follows:
''Of course Mr.. CariiSie's provision re-
curing banks taking out circulation
TO deposit greenhscks and treasury
notes. Is made in the interest of reliev-
ing the government and not for the ben
eft Of a currency issue. do not know
that have any objection TO this.
would Ike 70 see any safe course pur-
sued which would relieve the govern
meut Of It's embarraSsments 1t is by
no means an unfuixed blessing 70 the
banks. the retirement OF the govern
ment from the banking business.
While IL would benefit the government
and the people as a whole. IL would GER
talniy place added responsibilities upon
the hanks. I am strongly opposed TO
the proposition 10 do away with the re-
qulrements that The banks keep re-
serves. and my understanding Of the
law does not tally with that OF the
secretary. The law when II was drafted.
as understand it. was BASED upsn the
experience OF prudent and wen-rnansged
hanks. and the reserve was fixed at
point where prudent and well-meaa.ng
banks carried their reserve. Il was
sought 70 fix a limit 50 that we'll
managed bank would as often be over
as under the reserve In the regular
course Of business. This law is made,
not for the nine banks who would Oh
serve st without any legal provisions.
but for the tenth. that either through
incompetent. speculative or unsafe man
agement might fail 70 keep n proper re-
serve. and - keep its finances sug-
ficiently strong 20 meet the demand
ghat might be made upon IT,
The statement which the secretary
makes. that the state banks keep a 20
per cent reserve. whereas the national
banks keep only eighteen. do lot think
Is welI-foanasd
Mr.. Hepburn cr.tlcises the repeal ot
the 70 per cent tax on state hank notes.
while leaving a tax upon national hank
notes: also the forbla3ing OF national
b9nks - issue notes of less than So:
the safety fund should also De equally
compulsory. state banks should be re-
quir~i - keep fae saxue reserve de
closed ~ saying;
The. secretsry's discussion % the
financial question IN general rfyost
csrtaialy approve and the conclusions
he reaches. I believe. are wise and
sound but the details = The oitl he has
submitted are. tn my Judgment. open 70
serious criticism,
Flenxesentatsve WalSeF, - MasSacsa-
setts sodsy said - Understood thAt a
r,rozrarnrse had been Gnsetlv agreed upon
~ wh.ch The cuTrency hii Ttd - coss
sgse-es ~ TIRE Democrats of ihs commit
tee tansEhr. hy the fHll eossarnittes t0rIlov-