New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-19
MAKE BANKS RESPONSIBLE.
CONGRESSMAN WALKERS PLAN FUN
MAINTAINING THE PARITY OF
pApEP MONEY WITH GOLD.

c-,,-o.sr,an Joseph II Walker. OF Worcester
Mass last evening delivered an address oeloie ''e
Brooklyn Institute of Arts and sciences taxing as
ME subject THE Currency Problem OF the Unitec
States" 49,, ,..ro
The president OF the institute, A. A. Healy intro.
dnced CONGRESSMAN Walker who, in the course OIL
his remarks said; 49,
"our nresent financial system Is the most I'M
scentiAc and wastefu Of any devised tnat attehP.-
ed TO maintain It's paper money at party WIFI
gold" - r,,hua
Ha quoted Secretary Gage. ex-Secretary fairchnu
"a ax.ControIler Eckes as having admitted IN
examination before the Banking and currency
Committee that our financial system is the "ois.
- ,, IN the world and said that all financial
writer's and experts were now agreed that REFORM
IN currency laws is imperauvey demanueu'
The greatest currency question. according 10 MI
1ryor,or % N maintain paper money at parity
,,h gold without putting the burden OF FISK ana
exnense upon the Government, and ne strongly ao-
vocated placing the burden OF maintains parity
upon the banks -
Another problem, he said. is TO PROVIDE cur
roncv for the agricultural regions Of the country
mitch arc now $500 900 900 short Of banking FUNDS
as compared with 1850 This should be done oy
allowing banks 70 Issue true bank currency-tna'
is currency based on the assets or the oanh' h"e
present law he said. practically pronioits oahhine
in the country districts.
The speaker warned the people that our present
svste7o is insecure and that may awake any
morning and find ourselves on the Ihre so al
panic The seeds Of doubt fear ana hnan nan hie
panic" he said 'inhere in and are lnsePaI ap'e
from any system Of Issuing redeemabe paper ,
money through Government treasury ss t5ey
n may no we b1t we may be sure that they germi
ma ting The fury Of each financial storm VIII Sa
coed that OF the previous one. even as that OIL lo
aid ali that went before H.. This Is necessarily 50
because the intricaces OF the mahutactuIlnHs
creasing with tremendous rapldllyt anu ~ IA Ia
greater ratio than their volume The wno ,,, III,
fa1 Of
Of dollars rests on three billions Of bank deposits
they in turn are servceable by NcOWOc0 OF cur
oniv 500 COO 600 redemption gold. Even that gold
is not in normal contact with our currency Dut Il
stored away outside the hnanclal system as 'hous"
MO To abolish reasonable fear and 20 prevent pancs
uTv must be relieved from the current redemption
of all paper money and from the responsinln,y oi
nv law 10 maintain the parity between paper ana
cold All commercial banks must be formed INTO
cIearing-houses but leaving them independent IN
all other things. as now Restore 10 the pahs 1t,
he people enjoyed until 1868 by levying forced
loan on them in order TO make mar dos az a
eminent bonds This will place our finances on d
sound basis and make our currency cheap "ou"
dai of anu co,rse said Mr. Walker I'VE cannot now
return to the old system Of State banks But we
should incorporate into our system all tne soDDu
world aver saw was the Old New Eng land Suf-
folk Bank system A few wildcat banks In the
West and southwest Gas' S ~ Memory Of the
system OF State banks, ana the nv tnnS in the
mischief wrought by them is so strong III t t.ae
minds Of the people that they Will not hereafter
accent any currency not issued under National
supervision. For this reason we must pIotIue
true bank currency which shall be issued 70 me
hanks under the direction Of the Controller OF
the Currency who shall exercise the same sUperNl-
sion OF the banks now and the ultimate redemp-
lion OF this currency must be guaranteed by the
Government. To enable II TO make TINS guarantee
me Government should impose upon the currency
in actual circulation nominal tax of one-htth
of per cent per annum