New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-10

HEARINGS TO BEGIN BEFORE MIR.
sPRlNGEKS COMMITTEE TO-DAY.

~ LEGAL TENDEH
rnr rrDrcrAru TO THE rrprNrl

LEGAL Il%''.''
fny TELEGRAPH TO THE TEiuCSEl
v.,sbio.ton De. s-The series Of hearings be
fare the House Committee on Banking ara car
r.rcy which Will be- opened to-moiio" 10y '''
tary Carlisle anl Controller Eckl's promises 10
N. interesting and NAV turn ont 10 be important
In n. barring upon proposed currency i'S'S'''''''
While the member. oi he majority OF IN" 'ofn"''-
tee are eNcccdingly nnNlous-ind"e' eager ~ V"
,.s. , measure that the majority Of the House 81
REPRESENTATIVES, viii adopt there are "'d' anu
somewhat radical differences Of opinion among '"'Hl
,s 70 WAT should Do The SCOPE and provisions %
~. ,nearire Mr sparr5. 81 Connecticut "ro
stands second on the committee. ana VINO "'"''
have been IT'S chairman II l. had not heen necessary
90 ind - place Tor MIR Springer no VAS depoSe'
from the ,hnirunnshlp OF Ways and Means mas
strong opinions TIE subject % currency "g'sla-
,ion In the course 81 conversation with a Tribune
correrondcni to-day MIR Sperry gave expression
TO his opinions which. IN view of tn" pending en''t
for legislation. viii be found interesting In SUD-
stance he said
There are TWO ollsses OF paper money hnanciers
In the country t'hdy. Oh. u's'i ~ ,i@sires
issued by the Government. ana me Othsi W -
WamEnS and curr~ncy COMMUTE is one OF those
Who desire Government issue OF paper h
now pending to increase IN" grecnhack circulation
Of the country II IL fortunate nat Inc 9.,rI'i ny
plan suggested by him. whil" u may pei"nts ~, -,
ipt ~ 'nir t,s.f - IN, banking and com
m"rciai Interests of the country. ana his whole
form Of a III l. ccrtaniy worthy Of = trial.
HIS first suggestion that government bonus ShVull
no longer be- required q. basis for circulation mas
long been apparent every one who has given any
attention to the matter by reason OF thr iact tn~9
Government bonds are insuiic.eh IN amount ana
too nigh price 20 permit their use a. BASIS Tor
circulation. lis suggestion Ao"'N,r that ,.ahks
taking ont ssu" shout! De- fcqulf'l 10 u'Ips't III
lcgal-tcndcr notes ~ the United states sum cihi
to - per cent 4 The amount or cT'n"nns no e.,
taken out * entirely inlIa' t'i'i' u 'h'l ~
THAI banks Of ISSUE required 10 redeem iher owl,
circulation, As they are Ia Mr. carlisle pan Mnul
be Obliged TO MAINTAIN redemption hk'iiDl''
81 the home bank and OF course would nrch y re-
serve deposit - meet those demands. After supply
ing the Government "ith 80 per cent ann me-" re-
dcmpion agencies with perhaps 10 or - pr cent
per cent more ~ reserve for redemption, there
would BE- very ttie left 70 circulate. ,, , 800.
10 me- that this rrluin4,nt u . so tin ma,
no,cs and me lew Of small tax on circulation
for the cost Of administration. works well ~ the
National Bank law. and his suggestion IN mat re-,
may hereafter be- presented to the House. do not
see why he should prohibit thu circulation OF any
n be- in the hope OF forcing silver into circulation
do not gather from the brlef statement wnich Il
have seen In the papers whether he contemplate
the continued circulation Of silver certificates ~
that case the continued warehousing OF SILVER 10y
the Treasury, whether he expects by Withdraw
II the ld'a Is To- force siiVer com mo ''@r
think the experiment would be DISAPPOINTING me
circulation of small gold cons-that Is. s. and $40
gold pieces. People in this country do not want To
are obliged TO- Paper substituted for metal coin is
not only convenient but IL Is economical III shNeS
the waste OF metal In coin, which Is very consider
The safety fund principle Is exceedingly popular
pass law under which no bank could organic
with capital less than Sm@' nothing could ,a De-
been fully demonstrated 1t may be conceded.
however, that bill can pass Congress which
at
ton so small. In fact. as not to command the
services OF men Of banking experience. and the
danger under such a system IL that the sound
banking institutions VIII be constantly taxed TO
His suggestion that the tax on State bank cir,
culaton might be waived at the discretion OF
the Secretary OF the Treasury. Under certain con
ditions. is Objectionable FOR several reasons IN
the first place. we should have banks organize nia
either under Federal statute or under state
crnment or OF the states should be exclusive.
The Federal Government ought not to undertake
organized under a state charter The entire civil
and criminal Jurisdiction over those institutions
h a%s Of ' when they are Organized the same az
the Federal Government now exercises exclusive
jurisdiction over banks organized under the Fed
The practical effect OF this recommegndation in
connection with the requirements OF 80 per cent
deposit OF legal-tenders money In the United
states m sS or honEs Would soon become state
banks They would organize under charters when
Recommendation. and It Is hardly to be conceived
mai The Federal Government would afterward at
tempt supervise In any way the affairs OF
such banks The Secretary's suggestion that
hanks should be permitted TO circulate note
payable In gold coin only IL a long step In the
right direction. II banks should avail themselves
III This option notes OF those banks would very
soon occupy the field. to the exclusion OF notes
payablc In any legal-tender money Of the United
States which is liable In the near future TO mean
silver only The Secr-tary's plan VIII undoubt-
edly be formulated into bill and there Is scarce
ly any doubt but that the bill VIII reach vote
in the House soon after the holidays. The pres
ont financial condition Of the country IL such "A
to demand immediate attention by Congress.
There are three things absolutely necessary 10 be
done before the country can Dc placed upon II
sound financial basis; ,, - ,.,
FIRST II should have banking system, win
links of issue with notes redeemable IN coin only.
second the gold Obligations OF the Government
payable on demand that Is. the greenbacks and me
Sharr,an notes ought to be retired In the near
f,tnre II the surplus OF revenues OF the Govern
ment would not permit the retirement OF these