Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1894-12-15
PLANS COMPARED.
A Senator Discusses Proposed Methods of
Currency Revision.

Currency Revision.
WASHINGTON, Dec. S.-Mr. Carlisle's
plan of currency reform is naturally
attracting great attention in and
out of congress.
While Mr. Carlisle's plan is favorably
commented on by many prominent
members of both houses, there
are others, whose opinions are
of value, who argue that the
plans proposed by Comptroller
Eckels in his annr"l report hc Supe-
rior merit, and when thorough un
derstood will meet with general APP
prevail A prominent senator, who is
a recognized authority on all financial
questions, explained his views on the
two plans He said:
Mr.. Carlisle's plan for currency reform,
when applied to practice, will produce the
following result Taking for the purpose
OF illustration the example OF bank hav-
ing 100000 capital, such bank would be
entitled to issue notes up to the limit OF
SIS 600 (75 per cent. of the tapitall, but before
doing must deposit legal tender notes to
the amount of S22500 $50 per cent. OF circula-
tion). That in effect would be equivalent to u
net issue of $4,000 in circulation by the
bank, or S75, 900 received in notes from the
government minus s22.500 In notes de-
posted with the government. Upon this
$4,000 of currency the bank would earn It's
profit provided it could keep them in circu
lation, after deducting costs OF redemption,
tax for safety fund and tax for admins
tration OF comptroller's bureau. AS u
plan for relieving the general govern
ment from the burden and charge of re-
deeming United States notes it would
according to the secretarys estimate result in
securing the temporary deposit of s225 5OOO,OOO
OF these notes with the government, If
al the national and state banks now
in existence should take out circula-
tion to the full amount proposed Let
how this result would be ar
rived at. The present capital of all national
banks in existence is about S6CsoOO,OOO If to
this be added 1892 0O0,0J0 the capital of state
banks availing themselves OF the privilege, q
total capital of $1,000 00O,0GS would be had
as the basis upon which tc issue cur
rency Assuming that all the banks pos
sessing this capital issued currency up
to the full limit OF Is per cent will
have an issue of bank currency to the amount
OF $3.50, 00O,0O0 Against this legal ttu.;crs to
the amount of 30 per cent. NJ circulati ri must
be deposited, or 1928 100000
so much for the practical working ci the
secretarys plan, and VIC take look at
the plan proposed by Con- pl .Oller Ecj :. As
he gives but few figures On which to utse O
computation, but simply outlines the princt-
pies Of his plans, only hypothical illnstra-
t!on Of its practical workings can be
attempted Taking Il bank with 100000 capi-
tai, in the other case, the comptroller s
plan appears to require that the GGnll deposit
with the treasury $4,000 in United States
notes or legal tenders Cor cancellationi, in ex-
change for which 1t will Immediately receive
S50,OO0 in bank notes for the current
redemption Of which only 1t shall be
liable during its lifetime the govern
ment reassuring responsibility for uIti-
mate redemption of the banks notes
of this class only upon the failure
or liquidation OF the bank. In this feature,
therefore, there is neither expansion nor con-
traction of the currency, simply the exchange
of one kind OF currency for another just as
good, but for the purpose, and with the effect
of entirely relieving the government Of the
burden and cost of current redemption during
the existence OF the bank receiving and
issuing the same Under this branch of the
comptroller's plan, with the present cap
| ital OF national banks wiz: S66s ,O00.-
| 0OO) 1884, 100000 of legal tenders would
| Immediately be retired and withdrawn from
| the possibility OF being redeemed in gold by
! the general government, while O banking cap
| ttal OF IL 600, 100000 would serve the basis
for retiring the entire issue both OF United
! States notes and Sherman act notes, amount
/ ing together to about Sq3,000,o00 while under
| the secretary's plan capital Of $1,000 ,0OC
! would effect withdrawal according to his OWE
estimate OF only $225 100000
"Passing to the other feature of Mr.. Eckels
recommendation it is found that n bank with
100000 capital tould also issue as much as
$4,000 OF safety fund notes, constituting first
loan upon its assets and upon the liability OF
/ it's shareholders and redeemable upon the
| failure of the bank promptly out of safety
/ fund created by light tax upon all the banks
issuing this kind OF circulation.
"Of the present national bank capital so per
cent. would be 1891, 100000, or sum $l62 900 OOt
greater than the total of present national
bank circulution-viZ: $l22 0O0,00O while q
capital OF 81 s1,C0OOoO,OOO would provide fol
$500, 600 OF this safety fund circulation,
sum S32S, 600 900 greater than the present banl
issue.
THE legal tender currency out OF the way by
Mr.. Eckels plan OF substitution of bank notes
the practical result would be that all the pa.
per currency would be redeemable only II
gold or silver coin, for there would exist only
bank notes, gold certificates and silver certi'
acates."
TIT FOR TAT.