Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-14

Aa %A1AeAAslss
WASHINGTON, December 1S.-The House
Banking and Currency Committee contin-
ued its hearings to-day. There was bare
majority Of the committee present Let
ters were read from ". B. Dana, editor Of
the Commercial and Financial Chronicle,
and from r. b. Ferris, vice president Of
the Bank Of New York. Mr.. Ferris said:
There seems to be no good reason why ex-
isting national banks who have United
States bonds in deposit with the controller
should not be allowed 70 continue as they
are, either until their charters expire or
the deposited bonds are paid OF. Section
of Mr. Carlisle's DILL seems like forcing
the banks 20 do what they nave not been
consulted RoOUL"
Referring to section 10 of the Carlisle
bill. providing for the issue Of notes by
State banks, without the provision Of a
sinking fund, Mr.. Ferris said: 1T makes
the blll simply an imitation measure mOdi-
fed bv the deposit or 80 per cent. In legal
tender notes and the provision 70 cancel
United States notes TO the extent Of 40 per
cent of new circulation issued when the
NLNanlAF Aa1 NaN lANANn W AA ANr ett4A -Ae
closes his letter 0y saying: "As bill 20
substitute national bank notes FOR United
States issues 10 viii be a failure as it pre-
sents no inducements 20 solid banks 20 be-
come insurers Of the circulation OF muSb-
room institutions, and the 5timulant 20 or
ganize State banks not subject 20 United
Stats inspection Is questionable"
AFTER A PASSAGE AT ARMS
between Representatives Walker aud War
ner as 70 the order in which witnesses
should be examined. i'm which Mr.. Walker
C omplained Cf criticism by Mr.. Warner,
Mir. William T.. Cornwall, president Of the
New York Banking Association, read
paper on the currency problem.
William T.. COrnwel, president Of the
City Bank of Buffalo, and president OF the
New York State Bankers Association,
said his recommendations were as fol-
lows:
THE green1Cck and treasury note should
be redeemed aud cancelled, the real OuSi-
ness of the government as regards money
is 20 stamp upon gold and silver their 1ne-
ness and weight A government has no
right 20 issue paper with nothing back OF
it. and to make 10 legal teuder-tO create a
currency and by an act Of law force the
people 70 take 10 full value without regard
70 the intrinsic worth. All such issues up
% date have ended in trouble. The green
back and treasury note are Of this charac-
ter They are the governments notes 20
the extent of $500, OOOOOO, payable on de-
mand, and in gold. They have caused
trouble enough already. Tney are con-
staut menace 70 the gold reserve. Iney
should be paid up
"The vacancy should be filed with bank
notes. The best currency of the pest ma
tiOns to-day is mainly bank notes which are
q first lien upon the assets OF the uank.
These assets are commercial possessions,
representing the product Of the brain and
muscle Of millions of the people. They are
the wealth Of the nation. what better
basis for circulation can there be- than this
the actuRl wealth of the nation
$40 an the vacancy created by the retire
meut Of THE legal tenders. aud as fast as
they are retired, uatiOna. banks should be
allowed TO issue notesS a perC entaSe Of
capital
WITHOUT BOND SECURITY,
the notes 10 be first lien upon the assets
of the uankl including the double liability
OF stockholders, with guarantee fund
made by at the banks, the government
continuing 10 guarantee and redeem all
notes as au present. THIS Is practically
the Baltimdye plan. IJ is simple; 10 is good
as far as 10 gbes, ana il goes areu0ugh for
$40 perfeci the system further and work
out the c0m1 1lcateJ aud delicate problems
attending thiE, an impartial, expert COM
mission shout 0e appointed
..To recapltu.ate: Retire the legal ten
ders. Let .be national banks take out
notes under fhe Baltimore plan % replace
them. AppJiut an impartial expert COM
mission 10 pdrfect our currency system
Mr.. Cornwall, in reply TO questions by
Mr.. WaruerA said be thought the green
b.s<s and Ereasurv notes outstanding
should be redeemed, but that ne would
perform this redemption with low rate
bonds He alsO said that be did not con
slider that pbrt of Secretary Carhsle's
plau relating 10 the retirement of treasury
bores sunicie1tly definite, and that a re-
A.. turp 10 state bank notes would bring
ABOUT a revival OF cOunterieitug, now re-
duced co a minimum.
AIr Johnson of Ohio, asked as 20 the
effect OF re6ceming the gresn6aeks Ia
silver. and was told that in such an event
yold wouid at once 20 20 premium.
MIR. William DOdlswOr,n, editor of the
New York Journal OF Commerce. ue2t ad-
dressed Jne Eomu,Hee
Nr. Dods5orth laid down the following
premises which ue elaborated at cOus.d-
ersb.s ,epgth: The bond form OF guar
anteo
uAs BEEN FOUND GNCoMPATIALE
with tbe elaskicity OF issue; thar SAID guar
anres leavesiuo sufficient margin Of profit
~ the issueh ami couseq UeuJy prevents
iss1iny. thel bonds themselves must Ina
few Years mature and be retired, the gov
eroTept's enlargement % pay the notes is
an Ulevitimhte exercise OF federal power;
o-ring ~ obstructive restraints the volume
oil notes cahnOt oe readily augmented %
meet prblic kmergencies; the arrasgemen IS
Tor ipsprlnrl current redcmpuons OF the
notes fan of fheir purpose, thereby keeping
tbe volume rAridlv infeXl0.e az tne seasons
when 10 shduld AUTOMATICALLY contract or
expand for these reasons tne nauona
ba1g circulation has shrunz 90 One-half is
forrler voIrrlN. while the puoic require