The Weiser signal. [volume] (Weiser, Idaho) 1890-1904, 1894-12-20


timore plan, and II was arranged that |
this be placed before the committee. |
Mr.. Whites statement was read from |
manuscript and was a carefully pre-
pared review of the banking question.
At the close of Whites statement he
submitted his bill on the Baltimore
plan. Homer stated that the commit
tee of national bankers had not yet
formulated a bill. Mr.. Johnson Of Ohio
asked Whites opinion of Secretary
Carlisle's currency plan. White ans
wered that he did not think the secre-
tary's plan would give the elastic cur
rency 1t sought. 1t compelled the banks
to put up 80 cents every time they Is
sued as cents
Mr.. Walker of Mississippi asked If
the bill presented py White would Sc
cure a safe and uniform currency. 1T
Will have that tendency" said White.
THAT is not It," said Mr.. Walker,
1--WE do not want to provide tendency
toward n safe currency. but actual
safety"
IT am not omniscient," suggested
White. He added that in his judgment
the bin would secure an elastic cur
rency
Secretary Carlisle came in at this point
and was an interested listener to
Whites answers to questions as to want
of elasticity in Carlise's currency bill
Mr. Warner of New York asked what
restrictions should be imposed upon
state banks. White said he would sub
ject state banks to the same regulations
as those imposed on national banks.
Mr.. Cox of Tennessee asked If this
would not do away with state banks
White answered that II would. White
said that he saw no objection to the
repeal of the 10 per cent tax on state
bank notes, provided that state banks
comply with all the requirements of the
national banking law, and provided
| that the means of enforcing these re-
| quirements are lodged with the comp
troller of currency. But the mere power
of observation without power of en-
| forcement he considered unwise. unsafe
aud sure to cause embarrassment and
| to end IN disaster, He considered 1t de-
sirable that the government shall con-
| tinue AZ now, responsible for the re-
| demption OF bank notes. The Baltimore
plan simply takes the law as 1t finds
| it. 1t makes change in the matter of
reimbursing the government for the re-
demption of failed notes. The only
question is whether the suggested
change puts the government to any
greater risk. This Is "A question of
mathematics. 1t Is to be answered by
the tables of bank mortality in the past
| 81 years.
Taking up another branch of the
| question, White said: 1T has been said
| that there is no more reason why the
government should guarantee the notes
of the banks than those of merchant,
manufacturer or farmer. This would
be true II the notes of the merchant,
manufacturer and farmer were allowed
to circulate as money, but not other
| wises"
White announced himself in favor of
the retirement of legal tender notes,
Notwithstanding that the retirement is
| included in the Baltimore plan. Car
| Isle then resumed his statement begun
yesterday. He presented the bill he had
prepared embodying his plan Of cur
rency revision, and read 1t to the COM
mittee, commenting on II as he pro-
ceeded
The bill presented by Secretary Car
isle is drawn upon the lines suggested
in his annual report to the president.
When he had finished reading the bill
he explained II In detail and pointed out
the various sections OF the present law
proposed to be repealed Section II in
the bill provides that state banks shall
not issue notes similar in design to
| United States notes or certificates or ma
tional bank notes. Concerning the con-
| ditions imposed upon the state banks by
his bill, the secretary said certain feat
ures had been added to meet the criti-
cisms made of the plan as outlined in
the annual report. In the course of the
discussion the secretary said he did not
think any Immediate retirement of
United States treasury notes was prac-
ticable.
Following are some of the features of
the bill presented to the banking and
currency committee by Horace White;
1t provides that no banking associa-
ton shall be required to deposit United
| States bonds tor security of circulating
notes to be hereafter issued,
That in lieu of deposits or bonds, each
national bank shall receive from the
comptroller circulating notes to the
amount of per cent. of it's paid up UNI
impaired capital, upon paying to the
treasurer lawful money to the amount
of per cent. of such circulating notes,
and thereafter tax of per cent yearly
upon the average amount of circulation.
Sixteen per cent. and the proceeds of
the tax is 10 constitute a guarantee
fund for the redemption of notes of in
solvent national banks
That each bank shall be entitled to re-
ceive from the comptroller. in addition
to the circulating notes provided for,
circulating notes to the amount of 20
per cent. of its paid-up capital upon
paying the treasurer 2 per cent. of such
additional circulation and that tax of
one half of per cent. per annum be
levied on the average amount of the
same outstanding. and an additional
tax of 4 per cent. yearly on the amount
of such additional circulation outstand-
ing for the year, all to be part of the
guarantee fund. Whenever notes are
issued to any bank, 1t shall be the duty
of the secretary of the treasury to can
eel legal tender of the United States
and treasury notes to the amount of so
per cent. of the bank notes to be issued.
Any bank may retire its circulation up
on depositing with the treasurer an
amount equal to the sum desired to be
withdrawn.
THE BILL INTRODUCED.
Mr.. Springer today introduced In the
house Secretary Carlisle's banking bill.
ferred to the committee on banking and
currency.
TELLER DOES NOT APPROVE.
New York, Dec. Ex-senator Teller,
speaking of the political and congress