The herald., 1894-12-13

ring to ths recommendations OF the
president and the secretary oil the
| treasury, Gage said: Agreeing with
the criticisms of these officers oil the
government, is to present the weakness
| OF our situation and the great desiraolii-
ty of seusrating the government from
direct responsibility Of currency issues.
! | am persuaded the country is not
ready to accept their recon mendations.
For any change, the method should be
go simple that all can comprehend 1t.
and it should be seen that incidental
I effects would not be in any direction
distur bing to trade, commerce or indus-
try, ! believe the Baltimore plan car
ries the true principles OF credit cur
rency. but we cannot reach it by one
etep, and years may intervene before 1t
can be realized. Meantime the way for
the government to step out OF the cur
rency business and place the burden of
redemption on banks, is plain.
Authorize Issues OF S250. 0.O00. 600
two and one.half per cent bonds. paya-
BILE such time as congress may elect 90
years, il desirable) to be offered sub
scribers at par. Accept in payment
United States legal tender notes or
treasury notes, the same to be Cancelled.
Am6uu Llb nhtlOhdl DAnA INV GU tbht
banks can obtain note issues to the face
value of the bonds deposited as security
for circulation. Reduce taxes on cir
cuiating notes to one-half OF l per cent.
This done, national bank notes would
make good the vacuum caused by the
retirement of government notes. In
fact, thsre would be some expansion
under it, to be followed later by some
contraction or through forced redemp.
ton of bank issues. II it be true, as
some claim, that the value OF the circu-
lating medium in the United States is
larger than can be maintained and the
outflow OF gold is natures method OF
equslizing things, the problem is,
then, to take the government out
OF the note-issuing business,
first, without contracting the currency
in the process second, without inviting
expansion. Secretary Carliele's plan is
in danger under the last suggestion.
There are some features of the national
bank act that would require amendment.
in order to give note holders fair and
cheaper access to points of redemption
than now exists. Redemption agents in
cities should be restored, but these are
details W hich l will pass by"
A letter was also read from Edward n.
Gibbs, treasurer of the New York Life
Insurance company, approving the ma
tionsl bank system with some moditica.
tion.
George G. Butler Of New Haven, Conn.,,
presented a currency plan differing from
the secretary's and Baltimore plan. Its
features include note issues up to 5 per
cent OF q banks capital, and removal OF
the comptroller of the currency to New
York, where te 10 to have control of a
specie reserve made up of % per cent of
the notee issued. Buffers plan also
proposed board of bank officers in New
York, presided over by the comptroller
of the currency also the erection of
suitable building in New York for the
currency bureau.
Mr.. Butler was questioned at length
by every member Of the com mittee, and
showed exhaustive familiarity with prac'
ticsi banking. He said the require
ments of Secretary Carlisle that all ma
tionai banks guarantee the notes OF
each banks would nullify the law.
Banks would not accept eueh unknown
responsibility. There might be no real
risk. owing to the safeguards provided
by Mr.. Carlisle, but boards OF directors
woul d never vote TO accept the risk.
Mr.. Butler and Mr.. Horace White OF
New York were further questioned after
recess.
Mr.. Cornwall OF Buffalo was expected
to address the committee, but as he
failed to put in an appesrace the COM
mittee adjourned until tomorrow.