The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1897-11-15
MONEY AND BANKING
Mr.. Horace Whites Recommends
tions 20 Monetary Commission.
SILVER Observation-Disclosures

Declares the silver Dollar should BE
Z Redeenabie In Gold, md Thinks the
Retirement of Legal Tender Notes
would Bring silver TO Par.
Washington, Nov. 15.-Mr. Horace
White, whose book upon Money and
Banking" has attracted so much at
t%ention, has submitted some clear cut
answers to the HETEROGENEOUS of the
monetary commission regarding inn
provements in the currency system OF
the United States. Mr.. white is an
outspoRen 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 I'm a financial sense there
is no difference between the several
forms Of government dduciary circu-
lation Of which silver dollars are part.
1.-THE latter" he declares. ARE metallic
g~reenbacks." He does not believe that
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:
81 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 ia @etail
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 it 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-
ton whether any safe and practicable
plan can be devised for using other
securities he says hat he thinks not.
He believes that so per cent Of the paid
up and unimpaired 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
I approve of the plan adopted by the
American Bankers association at Bal
timore, in October, 1894, commonly
NaAAEU AAG DdAAAAAAbAG pam al JAM
notes should be redeemable at the com
merciaI centers of the country, and also
81 their own counters. Perhaps an ex-
ception should be made of the Pacific
coast, on account of distance.
I'm times of panic or sudden strin-
gency 1 would allow an extra issue
equal to 25 per cent of the banks capt.
tai, conditioned upon the payment of
q tax. at the rate of 5 per cent per an
mum, to the government as long as the
excess of notes remains outstanding.
It would allow any bank having a
paid up capital of not less han $1,000,
900 to establish branches in it's own
state, and any bank having a capital
of IS, 900, 900 or more to establish branch
es in any part of the United States. J
would allow notes to be issued only by
the parent bank, although they might
be issued to and paid out by the branch
banks in the usual course of business