The herald., 1894-12-12
Secretary Carlisle Submits a
Bill and Explains Its
Provisions.
THE WORK OF CONGRESS
Nicaragua Canal Bill a gain Under Con.
sideration in the Senate-Tho Rail-
road Pooling Bill Passes
the House.
By the Associated PresL

WASHINGTON, Dec. 1.-THE hearing
before the house banking and currency
committee ON the question OF the res
organization OF the currency laws
was resumed today. Among those
present were Horace White, of the New
York Evening Post; @. Homer of Balti.
more, chairman of the committe of ma
tional bankers to formulate the so.called
Baltimore PLAN and r. E. Hepburn OF
New York, ex>comptroller of the cur
rency. These gentlemen represent the
currency ideas embodied in the Balti-
more plan. 1t was expected that SEQ.
retary Carlisle would present his cur.
rency bill and continue his statement,
but as he was late White opened the
hearing.
had drafted bill on the lines of the
this should bs placed before the Oom-
mittee.
MR.. WHITES STATEMENT.
Whites statement was read from
manuscript and was carefully prepared
review OF the banking question.
Mr.. White began with a reference to
the Baltimore plan. calling attention to
fact that it deals with only part of the
banking business that of issuing circus
lating notes, function not indispens'
able but valuable to the people.
He held that it was the paramount
right and duty of ths state to provide
for the safety of the community. Hence
it may prescribe the regulations under
which circulating notes shall be issued,
ha ofn Iinn ho
1t is not bound to give equal privileges
to all persons to exercise these funcs
tions.
The first half of the address was de-
voted largely to historical review of
banks in this country, and particularly
the New York safety fund system of
days prior to the war. which Mr.. White
extolled at length. The latter part of
Mr.. Whites address was devoted exclu-
sively to ths Baltimore plan. Referring
to the fact that it makes circulating
notes first lien on the assets of the
bank, he said:
"rhere is an outcry against this feat-
ure from some people. who cay the poor
depositor will suffer. But what is the
condition of the poor depositors now?
Are not notes first lien on the assets?
Can any depositor get any part OF this
fund until the notes are paid in full?
And, supposing 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 provided the
means of enforcing these requirements
are lodged with the comptroller OF the
currency. But mere power OF Observa-
ton. without the power OF endorsement,
he said he considered unwise, unsafe
, and sure to cause EN- barrassment and to
end in disaster.
He considered as desirable, though
not Indispensable. that the government
shall continue, as now, responsible for
the redemption of bank notes.
The Baltimore plan simply takes the
law as it finds it. 1t makes a change in
the manner of reim bursting the govern
ment for the redemption OF failed notes.
The only question ia whether the sug-
gested change puts the government to
any greater risk. This is a question of
mathematics. 1t is to 30 answered by
the tables of bank mortality in the past
/ 81 years.
Taking up another branch of the
question, MIR. White said;
| 1T has been said there ia no more
reason why the government should
guarantee the notes of bank than
those of merchant, a manufacturer or
a farmer. This would be true ii the
notes of the merchant, the msnufac-
turer 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 retire nent
is not included in the Baltimore plan.
He would have them extinguished, not
merely temporarily withdrawn.
My reason" be said in conclusion,
''for desiring ths extinction OF the legal
tender notes 10 that they are constant
menace to business, in that they have
kept political parties in hot water for 80
years and have obstructed progress and
REFORM"
At the close OF Whites statement. he
submitted his bill on the Baltimore
plan.
MR.. WHITES BILL.
Following is synopsis OF the bill.
presented by Mr.. White:
| ;Tha frat aackion nrovidaa thai M