Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-10-28
New Ranking system.

~ the annual meeting OF the Amer
can Bankers Association. held last wee"
IN Atlanta. Ca, interesting DISCUSSIONS
were had Of the views Of inc hns"e'''
experts then assembled. Last year '"e
association adopted and recommehueo "
Congress what was then termed '"e
Baltimore plan" The members OF 'he s'
ISOLATION have had ample time 10 io'"'
new opinions. but we do not know tna'
they have done 20. The last word mas
not been spoken on this important anu
Interesting topic. There are many BANK
ers and other fnanciers who have since
last year come to the conclusion 10 sup
port n new Statebanking system 'h''
having become convinced that the Natioh-
al Government ought 10 have nothing To
do with the business OF banking. be
sides. a thorough study OF the who'e SUN
lee, is very apt to lead thoughtful men
90 tho conclusion that IL is one Which
il wen calculated to tax ones wis 10 Tue
fullest extent,
Congress has not shown Itself friendly
Ia any given State-bank system. mat
body refused TO repeal the ten per cent
tax upon the circulating notes VI Sta'e
banks: vet until the law Is repeated no
new system of State banking ~ possipie'
The Baltimore plan" Is epitOmizea u!
the sun as follows:
"The plan proposed. was, In brief, An
amendment OF the national banking law
Distressing with bond security Tor cIrcu-
Iation. and authorizing the issue OF ho'es
by banks under direction or the toihptfoi
Ter of the Currency to the amount Oh
20 per cent. or paid-up capital WIN IN
emergency circulation or - per ..
more. and "A safety fund OF per cent
cash on deposit with the Treasurer al
washington to meet the losses of failed
hanks Included In the plan were pro
visions for the redemption OF notes by
the Federal Government, Which was ~
have q first lien on the assets OF lalitu
banks. hold stockholders liable. and re-
ceive-for the repair o. losses ana or 'he
safety fund--a tax OF J.: per cent OH
outstanding notes. ,,u
The first new amendment was the NY
uensina with the bond securities. As the
law nov stands the national banks All
have TO furnish government bonds ~ Sc
curity for their circulation. The sun
says:
at uhe Baltimore plan) was notable
plan, and attracted a great deal OF alten-
lion. being especially interesting az
marking the acceptance Tor the frst TIME
by our bankers Of the view that govern
ment bonds are not the only SAFE security
for bank notes
The SIatc-banking system is very popu-
lar in the Southern States; but 1t Will
not be 40 popular in the North. When.
however, such papers. as the New York
Journal Of Commerce come out FOR what
they call drawing the government from
the banks. II is time n begin TO look
thoroughly into the matter. As one ct
our exchanges says, public opinion was
very Crude" on this subject when Con-
gress last had the subject up for action.
From another paper We quote as follows:
The Baltimore plan was laid before
Congress and with It plan put forth by
Secretary Carlisle. Neither obtained the
approval of Congress. Debate in the
House showed that the Republican MEM
bers would not consider the subject on
its merits. Divided among themselves
some blindly sticking 10 the existing
national banking law and Others going
of with the siiverites-they occupied
themselves chiefly with destructive criii-
clsm. The Democratic majority ia the
House was equally divided and nothing
could be effected. though the chairman
of the Committee on Banking and Cur
rencv did his best TO pass a measure that
would permit a revival OF state bank
note issues without the evils supposed
to attend the issue OF notes by unregu-
lated State banks
1t is not Impossible that the same
condition Of things will obtain In the
next Congress. The existing national-bank
system is very strong all over the coun-
fry