New-York tribune., 1896-01-02
FOR CURRENCY REFORM.
THE BANKING AND CURRENCY COM
MIrTEE STUDYING THE PROBLEM.

CHAIRMAN WALKER THINKS THE MOST PRAc'
TIcABLE WAY OUT OF THE DIFFICULTY
WILL. BE THE SUBSTITUTION OF
NATIONAL BANK CIRCULATION
FOR THE PRESENT GREEN
BACKS
Washington Jan 1.-Mr Walker, OF Massachu-
setts the chairman of the House Committee %,
Ranking and Currency being asked by a Ohi'e"
Press reporter what banking legislation his com
mittee would be Likely to formulate at this session
replied that whatever action they took wouid pe
conservative Continuing he said:
From my conversation with the members or the
committee 1t Is obvious that we shaii 90 ho'"'e
that will not meet the approval Of the souhd sense
of the country The committee Is composed OF lar-
minded men They will not attempt to introduce
new rules for controlling the banks In any Dill they
may report on the other hand they recognize tha'
they are not teachers professors TO 1orm"'a'o
correct theories or practices In bin that the past
action of Congress shows canrsot become n law
First they will attempt to decide what are the
principles of finance crystaliized into hnanciai GUS
toms the violation OF which has caused the aho'ha
lous conditions of the present. Second they W."
decide the best thing to be done under the eA'S'''s
perilous conditions to put the finances OF 'ie co"i
try on safe and solid foundation had the commit
tee the power to do IT, Third they Will report 10 the
House n hill that conforms as nearly to the prac-
tices of the safest and most successful banking sys
tenn of the world that they devise that mas any
chance of being enacted into law by TINS 'ohsress
.In view Of past experiences and present preJu-
dices in the public mind, which must be recKo"en
with by the Banking and Currency Committee,
right solution of the problem is as difficult as IL -
serious and demands the assistance and encourage
ment as well as the forbearance OF every man III the
country skilled in banking or finance
1T seems the committee that the solution OF the
question can only be made In one OF three ways
which must contemplate relieving the United states
Treasury of all responsibility of redeeming In gold
a single dollar OF tho paper money now In circua-
ton First to $500 0oo00 of bonds ana use the
proceeds TO redeem and cancel the United States
legal-tcnder notes and Treasury notes. Seconh' 10
increase the revenues to exceed the expt MIXTURES
by a sum sufficient redeem and cancel In the near
future all such notes as they presented for re-
dcmption. Third make it for the interests OF the
banks and thus induce the banks to assume the
current redemption of all such notes; comPensat,
ing the banks for doing by allowing them 10
issue circulating notes against the assets OF the
banks TO equal amount =. .,
The first two schemes have been tried only 10 la
utterly because of the determined opposition OF the
people on April r. lsG6 an ac, was passeu & ea
tender notes. slo00.00o the first SIX months ana
%%" for eacn 9n tb peope manifested such
repugnancc to the law that II was repeated IN jan
on January IT, 1876. the law authorized the Treas
urer TO sell bonds retire legatender notes down
To $500 O0OvD and after January |. ls.9. ali such
notes were 10 be retired presented for rcdernp-
ton After oniy s35.OO000 had been retired the pco
pic objected 80 vehemently that Congress repealed
the authority retire the notes on May 2l S'N
Not only that but enacted in the law requiremt M
OF th. Treasury again pay out all SUCH notes
as fast as they redeemed -
III Congress should to-day pass n law proVlding
that the surplus revenues should be used to redeem
Treasury notes it is the belief of tn" most expert
enced men in Congress that It would be repealed
within twelve months. II seems. therefore, TO the
thanking ana Currency Committee that they are
shut up to the third method Of correcting existing
evils namely to induce the banks to become re-
sponsibe for the current REDEMPTION OF every dol
lar of papcr money by retiring every existing dolar
and having il issued by the banks OF tho country
half - bc a new bank greenback. Tho committe"
are anxious to have the assistance OF the most cX
porienc4d bankers of the country IN dcvsing som"
pIan for accomplishing this result IN View OF the
popu,ar oppositiOn to the destruction OF the Gov
rrnmeut paper.