The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-12-19
THE DAYS HEARING.
Horace White and Secretary Carlisle
Before The Committee.

I ing and currency committee on the
question Of reorganization of
the currency laws resumed in the
room Of the ways and means committee,
but did not move off very promptly. Among
those present We're Mr.. Horace White Of
the New York Evening Post, g. c. Homer
Of Baltimore. chairman of the committee on
national bankers, TO form the late sO-called
Baltimore plan, and A. b. Hepburn Of New
York. eX-comptroller Of the currency.
These three gentlemen represent the cur
rency ideas embodied in the Baltimore plan,
and they were present for the purpose of
urging the merits of that plan
Mr.. Whites Statement.
It was expected that Secretary Carlisle
would present his currency bill and con-
TIME his statement Of yesterday, but as
the secretary was late in arriving, Mr..
White opened the hearing In answer to
questions ne stated that he had drafted a
bill on the lines of the Baltimore plan and
il was arranged that this should be placed
before the committee Mr.. Whites state
ment was read from manuscript and was
carefully prepared review or the banking
question. At the close Of Mr.. Whites state
ment he submitted his bill on the lines Of
the Baltimore plan.
Mr.. White began with a reference to
the Baltimore plan, calling attention to
Of the banking business, that Of issuing
circulating notes a function not indis-
pensable, but valuable 10 the people. He
held that it Was the paramount right and
duty Of the state to provide for the safety
of the community. Hence il may describe
the regulations under which circulating
notes shall be issued, or gunpowder be
stored or liquor be sold. 1t is not bound
to give equal privileges to all persons to
exercise these functions.
The first half Of the address was devoted
largely to historical review of banking
IN this country and particularly the New
York safety fund system of the days prior
10 the war which ri. White eXtolled at
length. The latter part of Mr.. Whites
address was devoted exclusively to the
Baltimore plan. Referring to the fact that
II makes the circulating notes first lien
on the assets Of the bank. he SAID:
There Is an outcry against this last
feature from some people who say that
the poor depositors will suffer. But what
is the condition Of the poor deposit5rs
now? Aren't notes a first lien on the as
sets? Aren't security bonds a part of the
assets? Can any depositor get any part
OF this fund until the note are paid in
full? And in surprising that the bonds
SHAH ever fail short of paying the notes
could the depOsiUor get any part Of the
remaining assets until the par value of
the notes was deducted? OF course not"
Mr. White said he saw no objection to
the repeal Of the 10 per cent. on state
bank notes provided the state banks COM
ply with all the requirements Of the ma
uonal banking law and provided the means
of enforcing these requirements are lodged
with the comptroller of the currency. But
mere power of observation without the
power of enforcement, he would consider
unwise, unsafe and sure to cause enlbar-
rsssment and 10 end in disaster. He con-
sidered as desirable, though not indispensa-
bic. that the government shall continue as
now responsible for the redemption of
bank notes.
The Baltimore plan simply takes the
law as it finds il. It makes change in
the manner of reimbursing the govern
ment for the redemption Of failed notes.
The only question is whether the suggest
ed change puts the government to any
greater risk. This is Il question Of math-
ematics. 1t is to be answered by the ia
bles of bank mortality in the past thirty
one years
Taking up another branch Of the cues
ton, Mr.. White said Ii has been said that
there Is no more reason why the govern
ment should guarantee the notes of a
bank than those Of a merchant, a manu-
facturer or farmer. This would be
true if the notes of the merchant, the man
ufacturer and the farmer We're allowed 10
circulate as money, but not otherwise.
Mr. White announced himself in favor
of the retirement of legal tender notes
Notwithstanding the retirement is not in
cluded in the Baltimore plan. He would
have them extinguished, not merely tempo
rarily withdrawn. MY reason he said,
in conclusion, "for desiring the extinction
of the legal tender notes is that they are
constant menace 10 business in this
country; they have kept political parties
in hot water for thirty years and have
obstructed progress and reform"
Mr.. Johnson of Ohio asked Mr.. Whites
opinion of Secretary Carlisle's currency
Mo Tr rod f,o4 t,a
think the secretary's plan would give the
elastic currency it sought TO secure. 1t
compelled banks to put up 80 cents every
time they issued Is cents.
Mr.. Walker Of Massachusetts asked if
the bill presented by Mr.. White would Sc
cure safe and uniform currency.
1T will have that tendency" said Mr.
White.
That IS not it." said Mr. Walker. 1--WE
don't want 10 provide agency toward a safe
currency but the actual safety"
II am not omniscient," suggested Mr.
White. He added that in his judgment the
bill would secure an elastic currency.
Secretary Carlisle came in at this pOint
and was an interested listener TO Mr.
Whites answers to questions as to the
want of elasticity in Mr.. Carlisle's currency
bill.
Mr.. Warner of New York asked what
restrictions should be imposed on state
banks.
Mr.. White said he would subject state
banks to the same regua tons as those
/ imposed on national banks. Mr.. Cox Of
Tennessee asked if this would not do away
with the need of state banks. Mr.. White
answered that IL would. He said he be-
leved in one uniform banking system-not
forty-four systems, there being fOrty-four
states.
Secretary Carlisle Resumes.
Secretary Carlisle then resumed his
statement begun yesterday. He presented
the bill he had prepared embodying his
plan of currency revision and read it to
the committee, commenting on it as he
proceeded. When he had concluded read
ing the bill Mr.. Carlisle explained it in
detail. He pointed out the various sec
tons of the present law proposed to be
repealed. Concerning the conditions i'm
| posed on state banks by his bill, he said
certain features had been added to meet
! criticisms made Of the plan as outlined in
| thu annual report.
Mr.. Brosius asked whether II was not
| desirable for the government to assume
| the risk Of redeeming notes rather than
/ leaving it TO the banks. Mr.. Carlisle
| answered in the negative. He said he
| did not believe in government responsible
| ity further than in providing the most