St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-12-12
THAT BALTIMORE PLAN IS
Alternately Criticised and De.
fended--White's Ideas
of a Law.
CARLISLE BILL PERFECTED.
Congressman Springer Intro
duces the Measure in
the House.

WASHINGTON. Dec. 1.-THE hearing
before the house banking and currency
committee on the question of reorgan.
lzatlon OF the currency laws was re.
sumed in the ways and means commits
tee room, but did not move off very
promptly. Among those present were
Horace White, of the New York Even
Ing Post; g. {. Homer, OF Baltimore.
chairman Of the committee of national
bankers to formulate the so-called Ball
tlmore plan, and R, B. Hepburn, of New
York, ex-c0mptrolleT of the currency.
These three gentlemen represent the
currency ideas embodied in the Baltf-
more plan, and they were present tor
the purpose of urging the merits of the
plan. 1t was expected that Secretary
Carlisle would present his currency bill
and continue his statement OF yester-
day. but as the secretary was late in
arriving Mr.. White opened the hearing,
In answer to questions he stated that he
had drafted a bill on the lines of the
Baltimore plan, and 1t was arranged
that this should be placed before the
committee.
Mr.. White began with reference to
the Baltimore plan. calling attention to
tne fact that it deals with only one part
OF the banking business-that of issuing
circulating notes, function not indis-
pensable, but valuable to the people,
lie held that it was the paramount right
and duty of the state to provide for the
safety of the community. Hence it NAV
prescribe 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 func.
tiOns. The first half of the address was
devoted largely to a historical review of
banking in this country. and Particular
ly the New York safety fund system of
the days prior to the war, which Mr..
White eXtoiled at length.
The latter part of Mr.. Whites address
was devoted exclusively 10 the
Baltimore Plan.
Referring to the fact that it makes the
circulating notes first lien on the as
sets of the bank, he said: 'rhere is an
outcry against this last feature from
some people, who say that the poor de-
pOSitors will suffer. But what is the
condition of the poor depoSitors nOwP
Are not notes first lien on the assets?
Are not security bonds a part of the
assets? Can auy depOSitOr get any part
of this fund until the notes are paid in
full? And, in suppOsing that the bonds
should ever fall short of paying the
notes, could the depoSitOr 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 tax ON
state bank notes, provided the state
banks comply with all the requirements
OF the national banking law, and pro-
vided the means of enforcing these re-
quirements are lodged with the comp
trOller Of the currency. But a mere
power OF observation without the power
of enforcement be would consider un-
wise, unsafe and sure to cause embar-
rassment and to end in disaster.
He considered as desirable, though
not Indispensable, that the government
shall con inue as now responsible for
the redemption of bank notes.
The Baltimore plan simply takes the
law as ii finds 1t. 1t makes a change in
the manner of reimburSing the govern
ment for the redemption of failed notes.
The only question is whether the sug.
gested change would put the governs
ment to any greater risk. This is
question i'll mathematics. 1t is to bG
answered by the tables of bank mortal
ity ill the past thlrty-one years.
Taking up another branch of thu
question. Mr.. White said: 1T has beer
said that there is no more reason WHY
the government should guarantee the
notes of bank than those of a mer.
chant. manufacturer or farmer. This
would be true if the notes of the mer,
chant, the manufacturer and the farmer
were allowed to circulate as money, but
not otherwise"
Mr.. White announced himself in favor
of the retirement of legal tender notes,
Notwithstanding the retirement is not
included in the Baltimore plan. He
would have them eXtinguished, not
merely temporarily withdrawn.
'My reason" he said, in conclusion,
''fer desiring the extinction of the legal
tender notes is that they are constant
menace to business interests. and have
kept political parties in hot water for
thirty years, and have obstructed prog
reSS."
AT the close of Mr.. Whites statement
Mr.. Homer submitted his bill on the
lines OF tue DuIlltuOT6 pfdu. MT. 1OQeE
stated that the committee of national
bankers had not yet formulated their
bill.
Mr. Johnson, of Ohio, asked Mr..
Whites opinion on Secretary Carlisle'S
currency plan. Mr.. White answered
that he did not think the Secretary's
plan would give the elasticity to cur
rency it sought to secure. 1t compelled
banks to putup so cents every time they
issued IS cents. Mr.. Walker, of Massa-
chuSettS, asked if the bill presented by
Mr.. White would secure
Safe and Uniform Currency.
at will have that tendency" said Mr..
White.
THAT Is not it." said Mr.. Walker.
I'VE don't want to provide a tendency
toward safe currency, but the actual
safety"
Il am not omniScient." suggested Mr..
White. He added that in his judgment
the bill would secure an elastic curren-
cy 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 upon state banks.
Mr.. White said he would subject state
backs to the same regulations as those