The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-26
THE CURRENCY PLAN.
Opinions of Bankers on the
Several Schemes
DEFECTS or cAaL,sLE.s s,lL.
Objectisns 10 Bond ssrrender Frov:sion
ssd Gusrsnsee Tu.d-Csod Points
Of the Measure

Is q subject tsAat ID just now being much
discussed by all CLASSES and conditions
Of men. Congressman 2Te detsaiiag IL.
bankers talk about the Carlisle plan
and the Baltimore plan" and the mar
vino has not time 10 read much ca The
subject. and whose pocket feels the
need Of IAN increased issue Of curren-
cy." simply hopes that something WI
happen ., put money IN his purse.
The best features Of the Baltimore
plan. which was explained quse fully
in recent issue OF the poSs-TntelIigen-
Ger. have been incorporated Ia Secretary
Cariisle's bill. but ssfch opposition was
raised TO parts of the bill, notably that
sccsion watch provided that all nation
al banks should surrender the bcnds
they ndSss hold and reorganize under the
nsw plan, that the Carlisle bill is TO be
Withdrawn and a substitute presented
This Substitute does away with the inn
perative bond surrender feature OF the
original bill ard provides that. il the
n1tiogsal hanks wish to continue TO hold
their United States bonds and continue
~ issue circulation thereon. they may
do 81. Another important feature Of the
substitute bin is that it does away with
the unknown liability OF banks to guar
antee the notes of all other banks.
Interviews were obtained yesterday
from J. Eurih. president OK the Puget
Sound National Bank, and f. o. Graves.
president Of the Washington National
Bank, giving their opinion OF the Car
Isle bill and other plans for a new cur
rency. These gentlemen have Doth given
the matter great dez-- Of study, and
their views. which are printed below. are
worthy of notice.
j. Furth: my view Of the Carlisle
plan is that its general features are
good. The section relative To Compelling
national banks to- surrender the bonds
whfch they now hold should not be in
ccrporated in the law. 1t should be left
optional with the national banks 70 pay
the guarantee or not as they may deen
proper. Section Ii of the Carlisle plan.
providing for currency issued by state
banks, should also be left cut OF the
BILL for, IL il remains. there would be
so many different kinds OF currency that
ts.e holder would be at loss TO know
which was good and which bad. The
Baltimore plan is far preferable. as it
establishes one kind Of currency that
would be protected by guarantee fund
deposited by the banks issuing the same.
and that would be redeemed by the
treasury department.
III seems to me that the country real
ICES the necessity of the enactment of a
new currency Law. And this congress
will have the opportunity OF furnishing
such a law. taking the good features
OF the Carlisle bill, the Baltimore plan.
that presented by Assistant Treasurer
Jordan, and others. From these bills
there should be no difficulty in getting
one framed that VIII give us an absolute
safe currency, and one thar can expand
and contract as commerce demands 1t.
L. Q. Graves: THE opposition 10 the
Carlisle plan seems to be due to The fact
that 1t makes too radical a change in
the present law. IT will be wiser. In
| framing a new system. to leave the
| banks free to continue under the Old
plan or adopt the new, as they Inighs
| think best. To compel the banks that
are willing To maintain their deposit OF
! bonds, and 10 issue circulation against
| st, TO withdraw their bonds and retirs
| their present circulation strikes me aa
| unwise. While I believe that the time
| will Gene when the privilege OF issuing
| circulation may be safely restored to the
| state banks. do not believe the present
| measure provides sufficient safeguard
| for such circulation. or that the time
| is ripe for removing the prohibition w
/ on the Issue of notes by state banks II
| the nailona. system is TO be retained, II
| would be better to modify that SO as tf
| enable the national banks 10 furnish q
/ Sufficient circulation,
| .Ia my opinion the withdrawal ana
| expectation Of gold Is due entirely Il
/ the fac. that our circulation is redun
/ dant. The weil-lSslown law that tht
| poorer currency drives ont the better
/ has begun TO operate. and fear IL vii
| continue Ii operation unless some means
| arc provided for retiring "a part Of tn
| government ISSUE 1t must be renlem
| hered that q much smaller portion o
| tf1e circulating medium Is now held bs
| the treasury than formerly. The reeiue
| ton OF the treasury balance. ard m
| setting free OF a large part OF the note.
| and coln formerly held by the govern
| mens. have hzi the effeet Of inglatins
| the circulation II Just that extent. q
| the same time thar tha depression n
business has required the use Of les
| circulation than usual
II am utterly opposed To any plan
| whether It be the Carlisle plan. the Ba,
| tsgls,re plan. or any other. that provide
for an Increase in hank circulation, un
less provision Is made at tae same tim
| fer st least an equal decrease In Tin
| v<,fua1e IF the government circulation
M psattev how wisely devised II uai~h
b.. any psaa whieis would result in in
Hating our already REDUNDANT circaia
ton weus5, in nv opinion. be harmful
IL not disastrous"
I