New-York tribune., 1897-11-15
THB LEGAL-TENDER NOTES.

In regard to the iegal-,ender notes. Mr.. Whites
responses are as follows:
oasstlon-o? What grounds any, w9nd d you ypg
treasury notes Of 1870 ard Of the United States
x5.werzon h: ground that here I: 70 Ger.
!ion or non-redemption Is political issue TO De
fought over T. ilsctiohs, end mus. reLalD SO as
'nns aasrang i5i Ea %aSs q pPs S15 @
perty Failure OF redemption woula be bark
ouesiiosn-If il shall be decided TO retire the
1, Ursa sa,ss bo2 no,ss hey can II be done without
Answer-By carcell!ng all that are received at
or ali 50 reserved over and above the governments
necessary disbursements. ,, .
sds to2 ts en- adsoss's ca a6gn, Of cur
reney available for PURPOSES OF business? .,..,,..
in various ways, viz q BY reairing the gold pro;
f%Sad fom aSyyoaG 81 Sn % BY '9 M s t b s
notes. Prior to the CiHl War the Government
purposes Of business. yet the aupey vas never de-
oues,on-It i, be thought lnexpsaieh, to fund the
United States notes. how can they be redeemed
with an assurance that bank currency Will take
Answsr,--The assurance is found in the fac, ,Aa,
is,ed Is ]; has 6ean aed BY baEkno,es This va: tie
es:s IN s% pAni; Of is Ihe pr21ess OF takng ou;
mater OF machinery ard OF LEGAL regulation u Is
bank circulation /, Vii be is.ued = here is no
IL profit in it we must conclude either that the Law
needs amendment or that the demand for currency
- ID slight
WHEN THE PUBLIC DEBT Is WIPED OUT.
Mr. White believes that in process Of tine il will
not be possible to rely upon National bonds as
curity for banknote Issues. because OF the extinc
lion OF The puoIic debt In reply TO the question
whether any safe and practicable plan be de-
vsed for using other securities. he says that he
thinks not u should not ike 10 be charged with
the responsibility OF selecting the securities or
choosing between the different kinds offered" He
believes that 80 per cen; Of the pad-up and uniTn
paired capital Of the bank should be the Limit OF
the Issues. and that cash reserve should be
held for the red.mption Of notes. "the IS now
provided by law for deposits VIZ 25 per cent IN re-
serve cities and Is per cent elsewhere. with the
hight 70 keep three-hfths Of said Is per in the
reserve cities. There is no difference between de-
post liabilities ard note liabilities so far as the
should Pc OF EoS ss for s o9 gn5 t05
should be in :he vaults Of the ba1k IN a clearing
house depository" Qther questions regarding The
ios ioxss: currency are answered '' Mr. "'''S' as TO-
In general, I approve Of the plan adopted BY the
osober IS9 Somaoniy y,I5 eaiIed be Il: bs':9Te t
eomnnmercoi centre OF the country, and al their
own counters. Perhaps an exception should be
The fequ!rsmeGt re- Of redemption at the banks
counter was found 10 work no hardship under the
eustomarily deposited in ihe country banks
called for BY deposllors or nole-ho!oeIs'
Ouestlon--Nhat. II anything, beyond provision
for Immediate redemption Is needed for securing
the elasticity Of note Issues In periods OF normal
Answer-Abnity to. issue notes promptly is as
needful as prompt redemption
Ouoetlon.-In times OF panic or sudden sTlngency
how would YOU provide FOR additional issues by the
prevent commerc:'l distress? -.
Answer-I wcu.d allow an extra issue equal 70 %
per cent Of the barks capital conditioned upon the
payment Of a tax at the rate Of Eer cent per
annun 70 the GoveIl men: long as the excess Of
notes remains outstanding
GOLD FOR THE RESERVES
ouestion.--Of what should the banks reserves
cenes,!on, Why should any National bank be per:
rnlted 70 pay interest on The current deposits OF
o'annswerN1 see 70 objection thereto. The question
,e erSnently one 10 be answered by the experience
Of tks Lass thirty years. during Whicn time the
piSSue.tion'-should deposits Of country. banks IN
reserve cies he anthoi5zed to be counted as part
AnswerNYes 10 the extent Of three -ffths, as the
law now provides This proportion Is the result q
experience, believe. and ought therefore 10 De
osesiion-What should be the minimum capital
AnsWeT~i ara inclined TO favor the present limit
- orestior Should the existing 10 per cent tax on
State bank notes be repealed?
66nestiorsf lid any National bank be permitted
20 establish branches under It's single manage
Inswer-I see 10 ob.c.con thereto.
ISswer-I would allow any bank having o paid.
branahes IL s cWn Slate and any BANK
having capital Of Ave millions or more 70 estab
sn as sow noe III % Be issued only by the
bank, although they might be Issued 10 and paid
out by the branch banks in the usual course Of