The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-12
THE CURRENCY HEARING.
Horace White Does Not Think Carlisle
PInn Will Give the Desired Elasticity.

|
Plan Will Give the Desired Elasticity.
WASHINGTON, D. G., Dec. 1.-THE
hearing before the house banking aud
currency committee on tn, question Of
a reorganization OF the currency laws
was resumed in the rooms Of the ways
and means committee, but did not move
off very promptly. Among those pres
eut were Mr. Horace White, of New
York; Mr.. g. @. Homer, OF Baltimore,
chairman OF the committee OF national
bankers to formulate the so-called Balti.
more plan, and Mr.. A. 3. Hepburn. OF
New York, ex-comptroller OF the cur
rency. These three gentlemen repre-
sent the currency ideas embodied in the
Baltimore plan, and they were present
for the purpose OF urging the merits OF
that plan.
Mr.. White began with q reference to
| the Baltimore plan, calling attention to
the fact that it deals with only one part
OF the banking business, that OF issuing
circulating notes. 4 function not in
dispeusabIe, but valuable to the people.
He held that it was the paramount right
and duty 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 gun.powder be stored or liquar be
! sold. It is not bound 10 give equal
privileges to all persons 70 exercise
these functions. ~
The first half OF the address was de
voted largely to a historical review OF
banking in this country, and particu.
lar!y the New York safety fund system
of the days prior to the war, which Mr..
White extolled at length.
He said:
"The long and short OF It 10 that there
was revolt in the Democratic party
against these abuses, just as there was
revolt against Tammany Hall the
other day. The revolt OF 1858 was also
against Tammany. aud. the seceders
were called Locotocos.
"They set the ball rollin: for free
trade, and whatever measure Of success
that doctrine gained IN the north be-
fore the war was due chiefly to their
impulse.
The latter part Of Mr.. Whites address
was devoted exclusively to the Balti-
| more piau. Referring to the fact that It
makes the circulating notes q first lien
on the assets Of the bank, he said:
"There is an outcry against this last
| feature from some people who say that
the poor depositors will suffer. But
what is the condition Of the poor de-
postors now? Aren't notes fret lien
on the assets? Aren't security bonds
part OF the assets? Can any dapositor
get any part Of this fund until the notes
are paid in full? And. in supposing
that the bonds should ever fail 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-
yided the means OF enforcing these re-
ouirements are lodged with the comp
troller OF the currency. But a mere
power OF observation without the power
Of enforcement he 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 continue as now responsible for
the redemption OF bank notes.
The Baltimore plan simply takes the
law as it finds II. It makes change in
the manner OF reimbursing the govern
ment for the REDEEM ption OF failed notes.
| The only question is whether the sug-
gested change puts the government 70
any creator risk. This 10 q question OF
| Tt 10 90 h. raH ~
the tables OF bank m ortality in the past
thirty-one years.
Taking up another branch Of tho
question, Mr.. White said:
at has been said that there Is no
more reason why the government
should guarantee the notes OF bank
than those OF merchant, manufac-
turer or farmer. This would be true
il the notes OF the merchant the manu-
facturer and the farmer were allowed to
circulate as money, but not otherwise"
Mr. White announced himself in
fayor Of tho retirement OF legal tender
notes, Notwithstanding the retirement
ia not included In the Baltimore plan.
He would have them extinguished, not
merely temporarily withdrawn. "My
reason" he said in Cnnclnsiont "for de-
string the extinction oil the legal tender
notes is that they arc u constant men
ace to business in this, they nave kept
political parties In hot water tor thirty
years and have obstructed progress and
reform.
At the close Of Mr.. Whites statement
he submitted his bill on the lines Of the
Baltimore plan. Mr.. Homer stated that
the committee on national bankers had
not yet formulated their bill.
Mr.. Johnson, OF Ohio, asked ME.
Whites opinion on Secretary Carlisls's
currency plan. Mr.. White answered
that ho did not think the secretury''s
plan would give the elastic currency II
sought to secure. 1t compelled banks
to put up thirty cents every time they
issued sevonty.iive cents.
When secretary Carlisle appeared no
submitted COPY Of his financial bill.
1t is entitled IAN act TO amend the
laws relating to the national banking
associations, to exempt tho notes OF
state bank, from taxation upon certain
conditions, and for other purposes
Tho provisions OF the bill follow the
iines laid down before the committee by