The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-11-15


WASHINGTON, Nov. 14.-Mr. Horace
White, whose book upon Money and
banking" has attracted so much atten-
ton, has submitted some clear cut an
swers to the interrogatories OF the none
tary commission, regarding improve
ments In the currency system of the
United States.
Mr.. White is an outspoken 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 redeem
ed IN gold and in financial sense There
is no difference between the severaN
forms of government flduciary circula-
tion OF which silver dollars are part,
1.-THE latter" he declares. "ere metallic
greenbacks." He does not believe THAI
the amount of circulation presented for
redemption would be any greater than
at present II 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 us 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 redepm-
tlon In any considerable amount, being
needed. like the smaller silver coins for
circulation in retail trade. After the re-
tirement of the legal tender notes we
should be able to see better what to do
next"
Question: For the purpose OF facilita-
| ting the use OF existing silver currency,
what do you recommend as the smallest
denomination OF United States notes and
bank notes which should be put In cir
culation?
Answer: Ten dollars at first: but this
should be made matter OF experiment,
the object being to determine the dlmen.
slons Of the field of circulation which will
absorb the silver currency, leaving the
rest to bank notes"
In relation to the legal tender notes.
Mr.. Whites responses are us follows:
Question: on what grounds, II any,
would you favor the gradual. but entire
withdrawal OF the treasury notes OF 1890.
and Of the United States rotes2
Answer: "On the ground that there Is
no certainty, and can be no certainty,
that the government will always redeem
them in gold. Redemption or non-re-
demption is a political Issue to be fought
over In elections, and must remain so as
long as this kind of paper Is outstanding.
Mere uncertainty IS always a drawback
TO business prosperity. Failure Of re-
demption would be bankruptcy, public
and private"
Question: II II shall be decided to re-.
tire the United States notes. how can It
be done without adding to our bonded
debt?"'
Answer: by cancelllng all that are re-
ceived at the treasury for taxes or pre-
sented for redemption. or all so received
over and above the governments neces-
sary disbursements"
Question: HON in that case, can pro-
vision be made for maintaining an ade-
quate amount OF currency available for
purposes OF business?
Answer: Provision will be made au-
tomatlcally in various ways, viz:
a. By retaining the gold produced by
our own mines:
(2.) BY importing gold from abroad:
(3) BY the Issue OF national bank
notes. Prior to the civil war the gov
eminent gave itself no concern for the
providing of currency for the purposes Of
business, yet the supply was never def
clent"
Question: II II be thought inexpedlent
10. he -. "a. H.,
they be redeemed with an assurance that
bank currency will take their place?
Answer: "The assurance Is found iTf
the fact that in every case where cur
rcncy vacuum has existed It has been ILL
ed by bank notes This was the case In
the panic OF 1895. The process OF taking
out notes might be made more eXpedl-
tinus. That is n matter of machinery
and OF legal regulation. II Is perfectly
certain that II there is n profit In issuing
bank circulation. II win be issued. II
there Is no profit in It. we must conclude
either that the law needs amendment or
that the demand for currency Is slight"
Mr.. White believes that In process Of
time II will not be possible to rely upon
national bonds as security for bank
note Issues because OF the extinction Of
the public debt. In the reply to the Quca-
tons whether any safe and practicable
plan can be devised for using other Sc
Curllles he says that he thinks not. 81
should not like to be charged with the
responsibility OF selecting the securities
or choosing between the different hnde
offered" He believes that 80 per cent Of
the paid up and unlmpaired capital ~
the bank should be the limit OF the note
Issues and that cash reserve ghOuld b.
held for the redemption of notes "th'
same as now provided by law for dcpos.
ltH viz: 20 per cont IN reserve cltlcB"
and 10 per cent elsewhere, with the right
to keep threc-nrths Of paid 10 per cent In
the reserve cities. There Is no
difference between deposit lla-
HlllicJ and note liabilities, 80
far as the bank itself In concerned, and
no reason why the reserve should bc
greater or less for the one than for the
other Tho reserve ehould consist 0f gold
and should be IN the vaults OF the bank
or In u clearing house depository"
Other questions regarding the host
plan for establishing and regulating
banking currency are answered by Mr.,
white aB follows.
"in general ! approve NJ tho plan
adopted by the American Bankers Asgo-
ClatlOn nt Baltimore In october, 1894,
commonly called the baltimore plan Al
bank notes ehould be redccmnble at the
commercial cOntrc OF the country aud
also at their own counters purhapa nm
exception should be made 0f the pnrnt
coast on account ~ distance The re-