The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1898-12-02

NHdIles IT. OdW0S, whose report was pre-
maturely putlsh d in Philadelphia
paper, criticises the bills to reform the
national banking system on the ground
that they propose to protect the note
creditors Of banks at the expense of de-
positors. His proposals for banking re-
form and the securing of an elastic bank
currency are as follows:
s'First-Th existing bank note sys-
tenn, based upon deposits of Government
bonds as security, should not now be
abandoned
Secondly. For the purpose of allow
ing elasticity to bank note issues to pro-
tect the banks and the community in
time of panic small amount of uncov-
cred, notes in addition to the secured
notes, should be authorized by law under
the following limitations: They should
be subjected to SO heavy tax that they
could not be issued in normal times for
the purpose of profit, but would be
available in times of emergency. The
tax should be SO large upon the solvent
issuing banks as to provide fund which,
in connection with the pro rata share of
the assets of an insolyent bank, would be
sufficient to redeem the notes in full
without necessitating any preference of
noteholders over depositors of any insol-
vent issuing bank. The tax should be so
/ large as to force this currency into re
tirement as soon as the emergency passes.
"Such currency could be used only
to lessen the evil effects of the too rapid
liquidation of credits which are collapsing
under financial panic, but could not be
proftably used as a basis for business
speculation and imitation. 1t should be
to the business community what the
clearing house certificates are to our
cities in times of panic-a remedy for
an emergency, not an instrument of
current business"
1t is believed that the knowledge of
the purport of this report by the Presi-
dent made him doubt the advisability of
an extra session of the Fifty-slxth Con-
| gress, but the currency reformers as dis
tinguished from the banking reformers
declare that this report makes no differ
ence in the situation as far as they and
/ their reform are concerned, while the
banking reformers say that they never
expected Congress to pass the bill with
its banking provisions exactly as it was
prepared by the Monetary Reform Com
mittee, but did expect Congress to amend
it if that body deemed it too favorable to
the note creditors of national banks at
the expense of the interests of depositors.
Both classes of monetary reformers are
therefore as determined as ever in their
efforts to induce the President to agree
to call an extra session of Congress in the
spri g if this session fails to enact the
leg lation they desire. AsIhave stated,
there will be no monetary legislation at
this session, and l do not believe that
even the House at this session will pass
any bill relating either to currency or
banking reform, because the appropria-
ton bills will have the right of way
The utmost the currency reformers,
headed by Fl. II. Hanna, will ask of tine
President now is to leave the door open
for the calling of an extra session in the
spring if at that time it seems advisable
to do SO. This no doubt the President
will do. He is not likely to tie his hands
in this matter, for even he cannot tell
what exigencies or emergencies may
arise in the next three or four months.
| One of the strongest claims the cur
rency reformers put forward as to why
their request that an extra session of the
Fifty-sixth Congress be called to consider
! their proposed reform is political They
assert that through their efforts in the
recent Congressional elections enough
close districts were carried for the Re
publicans to give them their rather scant
majority in the House as we'll as two or
three Senators. They say that the men
they elected recognize that their success
was due to the currency reformers and
that these Congressman are to man
pledged to support the reform and also
/ to insist upon an extra session, if neces-
sary, that they may show their good
faith. This sort of argument and infiu-
ence will naturally have weight with
practical politicians. They can under
stand and appreciate them whether they
care anything about currency reform or
not. E.. W.B.
OBITUARY.
JOSEPH KIrCHEIL.