The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-12-14
THE CURRENCY PROBLEM.
DEMOCRATIC MEMBERS IA AC-
TIoN BEFORE THE HOLIDAYS.

or B-RAio, .. n. Ferris or the Rank Or
New Yorh. and Editor Dodsworth GIVE
Their Views Before che Hou.e Comnittes
wAsHINoroN, Dec. 13.-"No financial meas
ures, no Christmas turkey" remarked Repre-
sentative Springer to-day In reply to an inquiry
from Representative Livingston of Georgia rela-
tive TO the financial proposition now pending be-
fore the Banking and Currency Committee Of
the House. Mr.. Springer says a majority Of the
committee, backed up by a majority Of the
Democratic members Of the House, are anxious
TO have action upon a financial measure before
Congress adjourns for the holiday recess. Rep
resentatiye Livingston cordially endorsed this
declaration. and said that he for one would be
in favor of holding continuous sessions Of the
House and the rejection OF all motions to adj
journ for the Christmas holidays until the bill is
passed. There are many other members OF the
House who take a similar view OF the situation
and they are equally pronounced In their views.
Representative Bland and his free silver
followers will try and place a free silver rider
on any financial bill that is brought forward in
the House. SO determined Is Mr.. Bland to test
the sentiment Of the House on the silver ques-
tion, that he may attempt to get a free silver
amendment injected into one Of the general ap-
preparation bills. II It Ia ruled out on n point OF
order by the Speaker, It is Mr.. BANDS intention
TO appeal from the decision Of the Chair and
urge the House Tn sustain the appeal. 1t is said
further that q solemn COMPACT exists between
the free silver men In both parties to stand
solidly together on the question, regardless of
all other party Affiliations or partisan ties.
Mr.. Springer and his friends in the House are
not to be deferred by these threats, for he claims
that a large majority In the House favors
prompt action on the financial question, and the
rules OF the House provide the means for
getting to a vote after tho subject has received
fair consideration.
There Is no doubt" he says, "about the
question attracting general interest throughout
the country. The tariff and other political
issues are practically dead compared with II.
In the street cars, on the railroad trains, in the
hotel lohbies, and wherever business men or
politicians assemble, there the financial stun
ton Is the leading topic discussed. One seldom
hears about ad valorem and specific duties and
the other terms so frequently used in connection
with the tariff debate. They have given place
to remarks about the banking system, assets
and liabilities, elasticity in the currency. &c.
All this goes to prove that when money is the
subject under discussion all other questions sink
into insignifcance."
It the meeting OF the House Committee on
Banking and Currency to-day for consideration
of N new banking system. MriW. G. Cornwall of
Buffalo, President Of the State Bankers Assoc
VI v u WAC aAitu AhNio WIZ {"
number OF other gentlemen prominent in fnan-
oial circles present, including George Gunton OF
New York. the political economist; Editor Rock
well Of the Engineering and Mining Journal,
Representative Joseph c. Hendrix. President Of
the National Union Bank Of New York, and ex-
Representative Warner of Ohio, OF free silver
Mr.. Cornwell said that his recommendations
were as follows:
First-The. greenback and the Treasury note should
- Fah. aIElA "a AL nEanF
s~econd-rhc vacancy should be filled with bank
,,ThiTamT,o perfect I tho sy;tem further and T"gE oH'
an Impair tlal expert commission should De appointed.
A number OF questions were put To Mr.. Corn
well TO bring out his views on proposed lcgis!a-
he thought that part OF MIR. Carlisle's plan for
che retirement OF grecnbacks was not strong
enough. az 1; did not retire them permanently.
Il was like locking u skunk up in a closet; he
would get out all the same. Mr.. Cornwell said
there T nis no RSL profit Na IN The e,a tsf in sii.ut gSnkI hasn syse
that WIS the safest thing to, be; and the only
reason It was not q national bank was because
banks were made profitable. his bank would
adopt the system Immediately; there was no
"a letter was read from Mr.. 8. B. Ferris. Vice
President OF the Bank OF New York, New York
city. In which lie said, IN reference tothe measure
Incorporating Secretary Carlisle's plan:
Asa bill to substitute national bank notes for United
saeese ia;sG 10 sSlid SSsnps p To sscon" Insurers dr tho
circulation OF mushroom institutions, and the sim;
States Inspection Ia questionable.
According to Mr.. Ferris there seems to be no
have United States bonds on deposit with the
Comptroller OF the Currency. should not be al
charters expire or the deposited bonds are paid
off. He favored the appointment OF a number
would facilitate redemption and make the cur
rency more elastic. Mr.. Ferris also says:
Section 10. providing for the Issue o. note. by state
vided In section 5 for national banks, makes the OIL
OF so per cent In legal tender notes and'the provision
section % 70 cancel United states notes e ,he extent
treasury has the means to 90 it.
Mr.. w. Dodsworth. editor OF the New York
committee. He confined his attention to the in
quiry: How our bank currency system may best
with more elastic and automatic adaptations for
satisfying the ever-increastng ana yet ever
ing that the right OF issue should be given the
State banks. Mr.. Dodsworth said:
II the privilege Of issue Is withheld from this class OF
bsIen,s that would accrue % them from The use o.
s.sablisRins a moSopoiy Of The important function.
SSt equally : STSns and iSii sR iR,aTy sS g Shs &c Soq nss3f a
supply q CURRENCY The true prinSlpl hd 70 ne
FORE submit, Is the same rights, upon the same terms,
20 both classes OF incorporated banks.
In determining the maximum OF circulation 10
be permitted 10 each bank. Mr., D~odsworLh said
that the safest and most equitable method seems
TO be that OF esis9iiIhdnG a nHitoTm ratio n as t Is,
unimpaired paid-up capital, or the paid-up capt.
tai and surplus combined. lie believed that a
limit equivalent TO 70 per cent, of the capital of
the bank would be entirely safe.
Assuming the Withdrawal OF the bond form OF
guarantee against circulation, the question
arose, What other form Of protection of the
notes should be provided There seemed 70 MI.
Dodsworth but one really eligible substitute,
namely. 10 constitute the notes a first lien upon
the entire assets OF the bank. and also upon the
liability OF the stockholders TO assessment up TO
the fun amount Of their capital stock. There
could be no possible question aboutth slmcleney
of such a guarantee; the doubt would rather DO
whether 1t would not be largely excessive.
As for Mr.. Carlisle's 80 per cent. guarantee
fund, Mr.. DOdsworth said II had the very serious
objection that for each million OF expansion OF
note issues IL necessitated a contraction OF $780,
900 In another form OF currency.
With reference TO Mr.. Carlisle's proposal that
all provisions of law requiring banks to keeps
reserve on account OF the deposits" be repealed.
Mr. n~HtswOrth said:
regard the legal regulation OF bank reserves against
seposits only a. an enete remnant OF methods adapted
tOT times when bank management was less lntelllgent
and less conservative than In these days. The prlncL
pie Is venerable for is antiquity; and 20 minds living
unnFe In the mast than In the present 90 may seem