The Providence news. (Providence [R.I.]) 1891-1906, 1894-11-27
MR.. WALKERS PLAN.

lures Of the plan have been freely and
fully discussed.
1t is rs we'll to consider some of the
probabilities OF the adoption OF the
scheme. 1t is admitted that the present
Congress will do no more than to pos
sibly crease commission to consider
the matter during the recess and report
TO the next Congress. The new Con-
gress is rather Republican in It's makeup
and Will be quite likely TO consider only
such scheme as commends itself 20
good Republican business sense. But
little is known of the Presidents plan,
except that he proposes a currency
based upon bank credits, redeemable
either in "coin " or in "gold coin." 1t
is understood that the President has
not decided whether he will advise that
the redemption may be in silver or gold
or must be in gold. That hesitancy upon
the most vital point ought to discredit
the whole scheme, as IL evidences that
the President can have no proper sense
OF the needs of the business of the
country, and is certainly not to he
trusted TO outline new currency plan.
The plan of currency-reform that is
far more likely TO be considered by the
Fifty-fourth Congress than any other
conglomerate that can proceed from the
Presidents logy mind is that
which has been before the country
some years already, and which was
proposed in Congress by Hon. JOSEPH III.
WALKER Of Worcester, who has been re-
elected to Congress and will be the
chairman of the committee on banking
and currency.
MIR. WALKER has explained and ad-
vocated his plan both in Congress and
before commercial and banking associa-
tions. It provides for tLe issuance of
two classes of bank notes for general
circulation, the first based upon coin,
bullion or legal tenders deposited with
the national treasury, and the second
based upon the reserve held by the issuing
bank.
The funds deposited for the first class
OF notes, to be called greenbacks, must
be equal to at least 10 per cent. of the
capital OF banks having a capital Of less
than $3.50, 900, and sum not less than
S25. 900 by banks having larger capital
than $685.
The reserve notes may equal In volume
the reserve actually held by the bank,
and the comptroller of the currency is
to decide what the amount shall be by
averaging the reserve for six months
during the year previous to the issue.
Banks neglccting or refusing to issue
currency notes equal to the amount
averaged by three-ffths of the banks
organized under the act, Of like or
nearly like capital and deposits, and do
ing substantially the same class Of
business, shall be liable to pay a duty.
equal to 12 per cent. per annum upon
the amount Of notes the comptroller has
decided they ought to issue and has di-
rected thsm to issue.
Thus the bill of Mr.. WALKER provides
for a currency based upon actual cash
ready at all times to be used for It's re-
demption, a substantial portion Of
which is gold in the treasury
of the Government. The notes based
upon the gold funds deposited with
the treasurer are redeemable by the
treasurer when the corporate existence
of the bank ceases, OF in case of its
insolvency, or upon presenta-
tion for redemption. For the
redemption Of the reserve notes
the comptroller is empowered. If he
deems it expedient and for the
interests of the holders, to take posses
sion Of all the assets of any bank and
create fund large enough for the re-
demption of all the reserve notes
charged to the bank. This fund is
to be paid into the treasury and
the notes redeemed by the treasury.
Then the comptroller may turn the
remaining assets over to the bank.
There is provision for the redemption
by the treasury of notes Of bank the
assets of which may fall below the sum
required.
In brief. the currency Mr.. WALKER
proposes is to have one dollar of avail
able cash ready at all times to redeem
every dollar Of issue, and the nationa
treasury back of them and the response
ole redemption agent. The needful
elasticity Of the volume of currency
is secured by the fuctuaiion of the
volume Of re erve fluids held 10y banks
and that is regulated by the volume OF
deposits in banks, ss now.
The retirement OF the present cur
rencyn provided for by directing the
treasurer TO retire an am unit equal to
30 per cent. OF the coin aud legal tender
deposited by the banks TO secure thee