The morning call., 1894-12-12
PLANS FOR MONEY.
Mr.. Carlisle and the
Bankers.
SCHEMES GIVEN BY BOTH.
Congress Will Take Them Under
Amusement.
SLATE OR NATIONAL BANKS.
After All the Whole Question at
Issue Seems to Be Between
the Two.
SLATE OR NATIONAL BANKS.

lore The House BANKING ana currency
Committee on the question Of reorganlza-
ton of the currency laws was resumed to-
day. Among those present were Horace
White of the New York Evening Post, g.
Homer of Baltimore. chairman of the
committee on national bankers to fOrmu-
late the so-called Baltimore plan, and r.
E. Hepburn of New York. ex-COm ptroller
of the Currency. These gentlemen repre-
sent the currency ideas embodied IN the
Baltimore plan. 1t was expected that Sec
reiary Carlisle would present his currency
bill and continue his statement, but as lie
was late White opened the hearing He
began with a reference to the Baltimore
plan. calling attention TO the fact that 1t
deals with only one part of the banking
business, that of issuing circulating notes.
a function not indispensable but valuable
10 the people. He held that 1t was the
paramount right and duly of the State to
provide for the safety of the community.
Hence, it may prescribe the regulations
under which circulating notes shall be
issued, or gunpowder be stored, or liquor
be sold. Ii is not bound 10 give equal
privileges to all persons to exercise these
functions.
The first half of the address was de-
voted largely TO an historical review of
banks in this country and particularly the
New York safety fund system of the days
prior to the war, which Mr.White extolled
at length. The latter part of Mr.. Whites
address was devoted exclusively to the
Baltimore plan. Referring to the fact that
il makes circulating notes a first lien on
the assets of the bank he said: "There is
an outcry against this feature from some
people who say the poor depositor will
suffer. But what is the condition of the
poor depOsitors now? Are notes a first
len on the assets? Can any depositor get
any part of his funds until notes are paid
in full? Ana, supposlng that the bonds
should ever fall short of paying the notes.
could the depositor get any part of the re-
naming 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 CON-
ply with all the requirements of the ma
tiOnal banking law and provided the
means of enforcing these requirements are
lodged with the Comptroller of the Cur
reucy. But mere power of observation
without the power of enforcement. he
said, he considered unwise. unsafe and
sure TO cause embarrassment and to end
in disaster. He con sidered it desirable
though not indispen sable that the Govern
ment 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 reimbursing the Govern
ment for the redemption of failed notes
The only question is whether the sug-
gested change puts the Governmental any
greater risk. This is question of mathe-
MATES. 1t is to be answered by the tables
of bank mortality in the past thirty-one
years.
Taking up another branch of the ques-
ton, Mr.. White said: cit has been said
that there is no more reason why the Gov
eminent should guarantee the notes of a
bank than those of merchant, manu-
facturer or farmer. This would be true
if the notes of the merchant, the manu-
facturer and the farmer would be al
lowed to circulate as money, but not 9th
erwise."
Mr.. White announced himself III favor
of the retirement of legal tender notes, not
withstanding such retirement is not in
Guided in the Baltimore plan. He would
have them extinguished, not merely
emporarily Withdrawn.
In answer to questions he stated that he
had drafted bill on the lines of the
Baltimore plan. and it was arranged that
this bill would be placed before the CON-
mittee. Whites statement was read from
manuscript and was carefully prepared
review of the banking question. At the
close of Whites statement he submitted
his bill on the Baltimore plan.
Homer stated that the committee of
national bankers had not yet formulated
a bill.
johnson of Ohio asked Whites opinion
of Secretary Carlisle's currency plan.
White answered that he did not think the
Secretary's plan would give the elastic
currency it sought to secure. 1t compelled
the banks to put up 80 cents every time
they issued rs cents.
Walker of Massachusetts asked if the
bill presented by White would secure
safe ana uniform currency.
at will have that tendency" said White.
THAT is not It." said Walker, I'VE do
not want to provide tendency toward
safe currency. but the actual safety"
t'I am not omniscent." suggested White.
He added that in his judgment the bill
would secure an elastic currency.
Secretary Carlisle came in at this point.
and was an interested listener TO Whites
answer to questions as to the want of
elasticity in Carlisle's CURRENCY bill
Warner of New York asked what restric-
lions should be imposed on State banks.
White said he would subject State banks
to the same regulations as those imposed
on national banks. Cox of Tennessee
asked If this would not do away with the
State banks. White answered that lit
would. He said he believed in one uni
form banking system-not State systems,
there being forty-four States. Carlisle
then resumed his statement begun yester-
day. He presented the bill he had pre-
pared embodying his plan of currency
revision and read 10 the committee, COM
menting on it as he proceeded.
The shipments of gold were discussed at
much length. Mr.. Carlisle said the loss of
gold was very heavy after the passage OF
the Sherman law. The loss Of gold had
brought on financial distrust and had
threatened panic, but there had been no