The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-11
The Currency Problem.

The committee on banking and currency
has under consideration the plan Of the
Secretary Of the Treasury for reforming
the currency. and the secretary was before
the committee yesterday explaining it. He
was questioned by members Of the com
mittee at considerable length, and his
answers appear 10 have given quite gen.
eral satisfaction.
There was one question. however, which
he was unable TO answer II was whether
the bankers Of the country approved his
plan. He said he did not know what the
views of the bankers are in respect TO it,
that he had only looked out for the inter
ests of the government.
1t is a matter Of the greatest impor-
lance, however. how the bankers regard
the plan. II they are hostile to it congress
viii hardly adopt it. They will be able to
bring such arguments against it as will
convince congress that it would not ac-
complish the purpose aimed at. If they
favor it there isn't much doubt that 1t
will have a strong support in both the
House and the Senate. The reason why
much dependence is placed upon the view
the bankers take of it is that they are
credited with having a much more compre-
hensive knowledge of banking and cur
rency than those who do not make a thor
ough study of those subjects.
There are features of Secretary Carlisles
plan that are strongly commended by emf
nent bankers and financiers. and there are
g. q.
tons
They approve of the severance of the re-
lations now existing between the banks
and the treasury. believing that the treas
ury should in no respect do banking bus
mess, and they agree that the paper cur
rency should be supplied by the banks.
They think, however the so per cent. de-
posit Of circulation, required of national
banks, is greater than safety demands.
and they do not approve of giving any adj
vantage to state banks. According to the
Secretary's plan state banks are not re-
quired to make a deposit of 80 per cent. Of
their circulation. 1t is urged that If such
discrimination is made in favor of state
banks national banks will give up their
charters and become state institutions.
1t is true that if national banks put up as
security for their circulation so per cent.
of their circulation they might be favored
by depositors. because they might be re
garded as the safer institutions.
There are, of course. many other argu-
ments advanced for and against the plan.
1t is pretty safe to conclude, however,
that no bill on the subject of currency re-
form will be passed by this congress. The
session is so short that it hardly affords
the necessary time for the proper consider
alton of so important matter.
1t is worthy of notice that the sugges-
ton that a monetary commission ought to
be appointed to take the currency reform
question under consideration and report a
plan to the next congress is steadily gain
ing in favor. 1t is urged that the subject
is not political one and that non-parti-
san commission made up of the ablest
hnanciers Of the country could render con-
gress great assistance in this very impor-
tant matter. 1t is too important a matter
certainly to be acted upon hastily. From
crude legislation might come grave dan
gers.