The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-06
DISCUSSED BY BANKERS.
THE INVESTIGATIONS SUCCESS
TI0Ys AS TO CURRENCY.
None Hesitate to Approve Ihem-rrss-
i.snt'. B. e.sags and Report OF the
Secretary ofthe 4 e.sury,

president CleNeIano , mSSShet " CoN-
gress and Secretary CariIsies report
nave excited mucn Closer attention M the
nndncial distGct tnan ~ usually Siyen
10 state papers, says !es'eluay we"
1or6 Times. DanAcI5 Itel specially IN
teTestcu. because tHe tcddln5 o4DJcct la
DJtn documents A.. one Mitu Nulcn tIelT
DusILesS fuaa,s mem lalhilaI, ana one
"hicn, IN tneir OPihioh, VIII HOil'Iate
puOnc discussion unul eAistlb6 CONDITIONS
-4ve place to better ones. IHey are con-
Ntn,rd that currency re4OTm viii occupy
attention as the taIIn mas done, ana tndI
having been vigorously preseHted ~ lac
seOple II viii be pushed uhtiI the entire
c0untry shall be educated 10 an UNDER
standing Of IL.
WITH Ine prospect Of exhaustive discus
sion OF the SUBJECT, bankers are reluctant
just now 20 place themselves on record
regarding the plan PIopo5eu- 4Aey 40
not hesitate to express approval or IL.
Some Of them recognize IN IL points OF
superiority over the Baltimore plan,
winch the American Association Oh Bank
ers devised. la reading secretary car
Isle report, however, ana comparing
II with the summary IN the message,
they were impressed yesterday mat the
subject had been 100 well studied at
Washington to be passed upon casually
here.
Some disposition appeared to dissect
the plan, not with the view or criuclsing
1t, but rather to consider now II might
operate in practical bdnKlnB. Inc Pc
permitting
ness without maintaining a reserve re
CelVed considerable consideration. As
general proposition. banking without a
reserve was at once condemned. Iaken
IN connection with Other features OF the
plan, notably the redemption feature, IL
seemed TO bankers that the defect OF no
reserve might not be apparent IN bust
ness. Banks that have large daily deal
ings must be equipped with cash. Ii was
not doubted that, In this city and in
other cities In which banking IS habit
ually done according TO methods OF reg
ogniZed safety, ample reserve would be
maintained by the banks as a measure
OF self-protection, regardless OF statutory
laXlty or restrictions.
1t was suggested by some Of the bank
ers that the adoption Of the plan would
lead 10 the retirement in time of the
legal tender currency, part of IL going
TO the Treasury az deposit against
bank-note circulation, and the remainder
TO the bank vaults as reserve. There
are outstanding 1896 10000 In greenbdCks
and Treasury notes. II, on an aggregate
capital OF $1,000. 0o0, the banks were TO
issue circulation up TO their capacity,
Sl0O.OO0,OOO the sum Of S22j, 10000 in legal
tenders would go to the Treasury as a
deposit. Bankers seemed inclined to
think that the superiority of this cur
rency would lead them TO retire the other
{27l 100000 within their own vaults.
Lack Of preciseHess Ia the message and
the report in regard TO the place Of de-
circulation was believed 10 have been
intentional. Bankers apprehended no
confusion on this account. They assumed
that the President chose to leave this
matter undetermined at present but that
If the plan were made operative any Sec
rotary OF the Treasury would naturally
wish all deposits Kept together In the
Treasury.
If the greenbacks and Treasury notes
were Withdrawn from circulation in the
way indicated. there would be room fol
bank notes for 1896 900 900 without adding
10 the present volume Of notes I'm cirCula-
ton. The other issue among the people
WOJld then he s35T, 10000 i'm silver GER
tltlcates. for no one supposes that the
100000 OF gold certificates would be
more plentiful than now. National bank
notes, OF which S07000.t)0 are outstanding.
would Of course, yield TO substitution,
new currency.
A feature of the plan which bankers
discussed was that providing for re-
demption by the banks OF their own
notes. The Baltimore plan proposed no
amendment 10 the banking law in respect
TO redemption OF notes This omission
would leave II incumbent upon the Treas
ury TO redeem notes. The President pro-
poses that the national banks shall do
this work No objection appeared TO this
feature but II was thought that con-
fusion might result, or hat notes issued
in localities not favored might suffer
the penalties Of discount II they strayed
far from home.
The provision Of the plan authorizing
ban ks to issue circulation. redeemable in
gold. was thought to be meant to apply
70 the Pacific States. whore no other
Kind of notes could circulate. Since gold
is the money in use there. and notes have
barely been tolerated at any time. II Is
thought that the provision was suggested
as means or encouraging paper issues
among the people in that section
Operation of the present law happened
TO be illustrated yesterday at the sub
Treasury, when 10000 in gold was with
drawn. The gold went to a member Of
the bond syndicate, who had borrowed
gold from bank to buy bonds and had
10 return IL yesterday. The easy way to
get 1t was to 20 to the sub-Treasury for
H. The Graft took from the new stock
Of gold, and depletion Of the replenshed
thus began at home in advance of de-
mands upon IL for export. Yesterdays
advance in rates OF exchange threatened
a call for gold TO go abroad in a short
time.
Among those who commented on the
new plan, John A. Stewart, the organizer
Of the bond syndicate and president Of
the United States Trust Company said:
Everybody interested in banking knows
that some reform which Will give elasti-
city 20 the currency Is needed. | shall
thoroughly study the new plan"
Cashier Sherman OF the Gallatn Bank
said: The present national bank circu-
laton Is really "A Government issue for
the banks must tie up with the Govern
ment more money than they can put out
II would be a great benefit 10 business
II the banks could expand and contract
the currency as business may need It,"
l. y. Seligman. the banker. said: THE
plan proposed will be acceptable TO the
banks as a measure 81 relief. A perma-
nent solution OF currency problems would
be 10 take the Government at once and
altogathar ont of banking and retire out
standing issues by gold bonds, SUBSTITUTE
ing a well-secured elastic currency"
A. r.nuI III. HIH(HIh END