The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-11-15
MONEY AND BANKING.
Mr.. Horace Whites Recommenda-
tions to Monetary Commission.
gILvER"METALLIo GREENBAOKs"

Declares the Silver Dollar should Be
Redeemablo In Gold, and Thinks the
RetIremont OF Legal Tender Notes
Wouid Bring Silver to Par.
!. Washington, Nov. 15-Mr Horace
White, whose book upon Money and
Banking has attracted so much at
tention, has submitted some clear cut
answers to the interrogatories Of the
monetary commission regarding I'M
proyements In the currency system Of
the United States. Mr.. White is an
6utspoken advocate OF the retirement
Of the greenbacks and the adoption OF
an elastic banking currency based upon
/ business assets. He declares that the
silver dollars should be redeemed IN
gold and that in a financial sense there
lis no difference between the several
forms Of government fiduciary circu-
,lation of which silver dollars are part.
t''The latter" he declares, ARE metallic
,6reenbacks." He does not believe that
1.-The amount Of circulation presented for
redemption would be any greater than
at present If silver were redeemable IN
gold. In answer to the questions re-
garding the maintenance of the gold
standard Mr.. White says:
II would recommend the redemption,
retirement and cancellation Of all legal
tender notes as a first step. Probably
the silver certificates and silver dollars
would thereafter remain at par with
gold, like the outstanding thalers OF
Germany, and would not be presented
for redemption in any considerable
amount, being needed. like the smaller.
silver coins, for circulation in retail
trade. After the retirement of the legal
tender notes we should be able to see
better what TO do next"
+, Mr.. White believes that in process OF
time 1t will not be possible to rely upon
national bonds as security for bank
note issues, because of the extinction
of the public debt. In reply to the ques-
tion whether any safe and practicable
plan can be devised for using other
securities he says that he thinks not.
He believes that 80 per cent of the paid
up and unlmpaired capital Of the bank
should be the limit of the note issues.
and that a cash reserve should be held
for the redemption of notes.
Mr., White says further: I'm general
approve of the plan adopted by the
American Bankers association at Bal
timore, In October, 1894, commonly
called the Baltimore PLAN All bank
notes should be redeemable at the COM
mercial centers Of the country. and also
at their own counters. Perhaps an ex-
ception should be made Of the Pacific
coast, on account Of distance.
"in times OF panic or sudden strin'
gency I would allow an extra issue
equal to 25 per cent Of the banks capi
tai, conditioned upon the payment o.
tax, at the rate of per cent per an
mum, to the government as long as Tho
excess Of notes remains outstanding.
81 would allow any bank having
paid up capital of not less than $1,000
600 to establish branches In its owl
state, and any bank having capita
of So, ,0OO, 900 or more to establish branch
es in any part Of the United States.
would allow notes to be issued only b,
the parent bank, although they nigh
be issued to and paid out by the brancl
banks In the usual course of business.