Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1894-12-21
ABOUT CURRENCY
House Committee on Banking
Taking Testimony.
WARNER, PLATT AND RIPLEY

They, as Wei as Broker jackson of Bos-
ton, Give Their Views Upon the Cur
rcncy Problems Pratt Opposes the
Retirement of Greenbacks.
WAsmNGroN, December 17.-ExRep-
resentative Warner of Ohio, President
of the BimetalliC League, was the first
witness to-day before the House Bank
ing and Currency Committee. He
went into the principles OF the entire
question, and urged that an elastic cur
rency, such as Secretary Carlisle sug-
gests, was an impossibility, for prices
rose as fast as the currency increased.
He said that the history of the world
proved that the gold standard could not
be maintained by giving to the banks
the power of expanding the currency.
He was amazed that this proposition
should be made in this enlightened age
in the face of the financial experiences
of the world. A long discussion followed
between General Warner and Mr.. Sperry
over question by the latter as to the
effect the increase of the circulation
would have upon the price OF labor. Mr..
Sperry called attention to a statement
by the Treasury Department., showing
that the circulation III 1873 had been
$77l 600, 900, whereas in 1898 it was over
50, 200, OU0, 900, and asked him how he
reconciled the facts with the decrease in
wages. Mr.. Warner replied by ChalIeng-
ing the treasury report of the gold IN
circulation at the present time, which he
said was 5000, 900 600 beyond the facts,
and by referring to the increase OF popu-
lation and wealth. Mr.. Sperry did not
consider the reply as adequate, and in
timated that, il Mr.. Warmers theory had
nothing more to stand on, it must fall.
Letters from President Cannon of the
Chase National Bank OF New York and
ex-Secretary of the Treasury Fairchild,
regretting their inability to appear, were
read, and then the venerable Baltimore
banker, Enoch Pratt, addressed the com
mttee. He opposed the retirement of
green back circulation, and said he would
rather have it increased.
At 1:l5 P. NJ. the committee took a re-
cess for an hour, and when the hearing
was resumed \. l.. Ripley OF the Ma
tional Hide and Leather Bank of Boston
was called to the stand. He character
lied the scheme of issuing demand notes
redeemable in gold as thoroughly vicious.
Under this system the banks had no
means of adjusting their reserves to
meet the demand OF the times, thus COM
polling them to keep a reserve, which at
one time would be too large and at an
other too small. He opposed state banks
because of the need of uniformity.
speedy and uniform system OF redemp-
ton he considered as necessary, and this
he thought could be best secured through
the national banks. Referring to SeCre
tary Carlisle's bill, Mr.. Ripley said he
thought the tenth and eleventh sections
would open the gates to extensive coun-
terfetng unless changed. He also
thought the provision for redemption IN
the case of national banks would be
found too inadequate. The Secretary's
plan in this respect would, II adopted,
mark refrigeration in banking. lie con-
sidered the present system safer than
the one proposed.
c.. c. Jackson, broker of Boston,
urged the committee to insert piOVl-
sion in any bill they might see tit To re-
port requiring the Secretary OF the
Treasury to begin January |, 1895, to re-
deem and cancel 81 ,000 600 worth of le-
gal tender notes, greenbacks, etc, per
month; authorize him to use the sinking
fund for this purpose, and If this Is not
sufficient, allow him to issue bonds Tor
the purpose. The Carlisle and other
plans in his opinion would not give the
confidence required by home or foreign
investors. 1t was necessary in his opln-
ion to adopt plan to insure the cancel
la ION of tho trao C11rV notes.