| Show I 1 I 1 discuss mm CURRENCY MS I 1 L 1 I 1 I 1 horace white before the 1 banking Bank ilig committees committee I I 1 0 I 1 A BILL OF HIS OWN j ia I 1 prefers the baltimore plan with in an eis added proviso for the extine 11 5 of legal tenders would I 1 ike state danles operate under the national Ilat ional law Ke ne eardine garding currency I 1 issues carliels Carl Cari iEle isie produces Pio rio duces his bill I 1 I 1 A I 1 washington D C dec I 1 ll 11 I 1 tha thc bearing bufor the louse house ranking banking and v currency committee COM clittee on oil the question it of the reorganization beor ot of the currency e aws was resumed reburn 1 I today to day among I 1 those present were horace white of oc fae now york evening post G G tomer of 0 baltimore chairman of the committee ot of national bankers to fors inflate the so bo called baltimore plan 5 end R B E hepburn ot of new york ex E comptroller of 0 the currency these r gent gentlemen leme 11 ic le presented the currency cur rensy tells ideas embodied in the baltimore plan f it was expected that secretary carlisle his currency bill and crould 4 present f nue his statements but as he was IN as tied the bearing in ant v ate white opened ope iwers to questions he stated he h had f traded it a bill on the lines of 0 tile the belll nore plan and it was waa arranged that fi his would be placed before the coni con whites white a statement was I 1 iad cad I 1 rom irom manuscript and was a car caralt lly S prepared review of 0 the banking ba liking 1 I lies flon I 1 MR WHITES HITES il IDEAS mr white began with a reference to the baltimore plan ilau ca calling lang attention to I 1 the ile tact fact that it deals with only one I 1 part ot of the banking business that of issuing circulating notes noted a function t not itoe indispensable but valuable to tile the people I 1 he held that it at was the paramount j right and duty of the state to j palde aniz for or the safety ot of the comm community unit we ice it may prescribe the ter ler i which circulating notes ahall be loaded i aed i or fr gunpowder be stored or liquor be sold it Is not bound to 10 ghe equal pill leses ilLges to all persons per to exercise exeL cise inese i the lust halt of 0 tile the address was devoted largely to a review of bans ju in this fills country and particularly the ahe new boik safety tuna funa system or of tle the days prior to tile war which sir mr white while extolled at length the latter I 1 part of mr ir whiles addless was de I 1 voted exclusively to the BaILL MOle I 1 plan to the fact that thai it i mattes makes the circulating notes noses it a fit at lien I 1 on oil the assets of the bank lie he said there Is an outcry against this flits feature aiom some people who say a ay the poor depositor will suffer B but u t w what hat is the condition of the poor depositor d epo 91 ator now are not notes a first 11 lien en on the assets can any depositor get any part of this fund until the notes tire arc li paid in full and supposing th that at the bonds should ever tall fall short of I 1 paying the notes could the depositor got get any I 1 part of the remaining assets until the s par value of the notes was deducted ut of course not I 1 E STATE BANKS AND TAXES sir mr white bite said he saw caw no obal objection atlon L to tho the depeal of 0 the ten per cen cent I 1 tax on in state bank notes provided the state I 1 tanks banks comply with all the lequire c I 1 ments ot of the national banking law and provided the means of oc enforcing these requirements are lodged with wit lithe the comptroller of the currency but a j mere power of observation without the 1 power of enforcement he said he considered unwise unsafe and cure to 1 I 1 I 1 c cause I 1 use embarrassment and to end in I 1 n leaster Ls disaster d 1 aster ho he considered as desirable though not indispensable dispensable I 1 n that the he government shall continue as now to be responsible for the redemption of bank notes the baltimore plan simply takes the ene law as it finds it it makes a c change it in the manner of reimbursing fit alie e bov government for the redemption ot of fa tailed I 1 I 1 cd I 1 not notes S the only question Is whether the suggested change chaise puts the government to any greater risk this Is a question 0 of mathematics it Is to be answered by the tables 0 of bank mortality la in the past thirty one years taki taeng g up another branch of the 4 question q ti estion sir mr white raid fald I 1 it has been said there Is no more reason why the government should I 1 irm rantee the notes of 0 it a bank tl in n those of a merchant a manufacturer or a farmer this would be true if the notes of the merchant the manucia and the farm r were allowed to circulate as money but not otheral o c WOULD RETIRE LEGAL TENDERS TENDE S mr white announced himself in favor of the retirement tel rement of legal tender notes notwithstanding iding the retirement Is rot cot included in it the baltimore plan lie ile would have them extinguished not merely rn rely temporarily withdrawn my reason he said in conclusion slon tor for desiring the extinction or of the ille le gal tender notes Is that they are it a constant menace to business in that th they ey hae bae kept political parties in ba h water arater for thirty years and have obstruct t el ed III i gress ares and reform r johnson Jo tinson of ohio asked whites ion 1111 of S cretal carlisles currency plan I 1 white answered he did not think tile the I 1 Secre plan would give the elastic clastic currency it sought to secure it eom com celled banks to put up 30 cents every I 1 time they issued 75 cents MR MH WHITES DILL BILL mr white then submitted a bill dratted drafted on the baltimore plan alfi as follows 0 the first section provides that no ranking banking association as so clation shall be required to deposit united states bonds bonda either 1 as a preliminary to the commencement of barking banking business or tor for the security of circulating notes to be hereafter issued j section 2 provides that in lieu aleu of 0 the deposits ot of bonds each national banking association shall be entitled to receive circulating notes from rom the comptroller to the amount of 0 blank per I 1 cont cent of tta its paid in unimpaired capital upon paying to tile the treasurer ot of lawtum wui money mo ait e to the amount A 0 2 per cent of such li circulating cir c ui ehg notes holes and thereafter th eleft er a tax t at t the rot rate of one halt half ot t 1 per I 1 cent c e per it annum ann upon p A alie th it ver aver A K amount A ta 0 its I 1 t circulation C r c at lion for or the year tle th C I 1 per cl cent nt and an the proceeds proceed of he ie to tx A are re to constitute a f guarantee us rantee f und runa for the redemption of notes of 0 I 1 insolvent n national na t ional banks and t tho he tax Is to be collected until the ednd amounts to not less iris than 5 pr per cent of the entire circulation IRs dwiel 4 this fund Is also to be in addia addit addition ton to the 5 per cent fund now provided provid ed by law section 3 provides that in addition to the amount of the notes provided X 11 f for each association shall be entitled to receive from I 1 ahe he comptroller jur circulating notes to the amount of 12 25 por per cent ot of its paid up unimpaired ed capital capita upon p paying al ing to the treasurer 2 per cent of such additional ciroula d alon t I 1 OA and the tax of one halt half of 0 I 1 per cent per annum on the average I 1 ot of the same name outstanding ing arid and an additional tax at the rate 0 of f 4 per cent t per annum upon the additional 1 elcula atlon tiOn outstanding for the year 1 all I of which bums are to ie be a part of the guarantee fund IN insolvency I 1 CASES 1 1 section S fl C I 1 5 devoted to alie fit e InsI vency I 1 f L illonal ill 4 r 6 1 I banking alsoc assoc associations lations anil and f it la Is provided r d that when such insolvent ey 1 l shall be ascertained in the case of I 1 I 1 11 1 1 I 1 any particular association its outstanding circuit circulating t ng notes shall be re deerr sad by the tha treasurer ot of tile the united states stales out of 0 the guarantee fund it if that be sufficient and it not sufficient out ot of any fund in tile ilie treasury alter after the loss on account of any particular lar failure has been made rood good to the gua guarantee rantee fund the united states Is firs to be paid tor for all advances advanced made section 7 associations applying tor for circulation atter after the ilie first payments into the guarantee fund shall have been made shall receive circulating noted front from the comptroller upon paying paving into the fund fun d a sum bearing a aatlo to the circulation applied tor for and allowed which the guarantee fund bears to the total circulation outstanding section 9 provides that whenever bank notes ire are issued to any association under this act it shall be the duty of tile the secretary of 0 that treasury to cancel legal tender united states notes slid and treasury notes to the amount of SO 80 per cent of the ilie bank notes so issued section 10 any association may retire Us circulation or ally part of it at any time upon depositing with the trea treasury suly an amount equal to the sum desired to be withdrawn 12 repeals section 9 of the act of july 12 and also the portion of tile the act ot of june 20 1894 which provides that the amount of I 1 bionda lond on deposit for cor circulation shall not be redeemed et med below and provides aba that t any association heretofore orr organized organised sed d siring to withdraw its it s circulating betes notes in whole or in part parl may do a so under the provisions of the act of june 20 issa c d as aboa e indicated sections sect inns 4 5 8 and 11 relate to certain to in minor routine matters mr walker of massachusetts asked it if the bill presented by mr jr white would secure a sate safe and aid uniform currency le it will have that tendency said mr M r white ah I 1 t e that Is not lot it said sir walker we do not want to provide a tendency toward a sate safe currency but the actual safety 1 I am not omniscient suggested mr NN white bite he added that in his judgment the bill would secure an all elastic currency secretary carlisle came in at this point and was an interested listener to I 1 mr whites answers to questions as tr the want of elasticity in nr hr carlisles c currency bill mr guarner wainer ot of new york tork asked what restrictions should be imp imposed 0 sed on state banks mr bir white laid hs he aou would id subject state banks to the same regulations as those imposed on national banks air cox of tennessee e ee asked it ii this would not do away with the state sta is banks mr white answered that it would he said rala he believed bell eved in one uni foint m banking system ys tem not state systems the e beenk forty four stat states tes mr carlisle then re resumed timed ills statement begun begu it yesterday lie ke presented the bill h he e had prepared embodying ills his plan of currency revision and read it to the committee commenting on it as he be proceeded in the section of carlisles bill nil all acts regulating the deposit of united states bonds to circus circulating tle n g notes or of national banks are repel repealed a d the second section pr provides for the issuing ol of circulating notes to a national al bank equal to 73 75 per cent of the paid and unimpaired capital upon depositing legal tender notes with naith the I 1 united states equal to 50 per cent of the circulating notes applied for these circulating notes shall be in denomination of 10 and multiples of oc ten and hall be uniform in design deign section 71 three levies a du duty tn of f i per cent bior for each halt half year upon the 1 I e average amount ot of a banks notes in circulation c section four provides for the mode I 1 of redemption and of a I 1 banks circulation SAFETY FUND CLAUSE section five creates the safety fund for the prompt redemption of circulating notes and failed national banks each bank shall pay to the united states treasurer in the months of january I 1 and july in each year a tax lax ot of vt J per cent for each halt half year upon tile the average amount of its circulating notes outstanding until said fund amounts to 5 per cent of the total amount of national bank notes outstanding and ther thereafter lafter said tax shall cease A bank leti or reducing ies hall be entitled to withdraw any part of its fund the mode of eduie in case ot of a banks failure is outlined section six allows the secretary oi of the treasury to invest money belonging to the safety fund in united states bonds section seven provides that july 1 1893 national banks now ha ing bonds on oil deposit may withdraw Ith draw them and t the he 30 3 per cent guarantee fund section eight repeals previous acts I 1 conflicting N alth ith this measure RETIRING LEGAL TE TENDERS N DERS section nine provides that the secre daiy of the treasury may in his discretion redeem and retire united states tender notes that no united states or treasury notes authorized b bi the act of july 1 of a denomination of less than 10 shall be issued section ten tell states that the banks duly organized under the laws of any ally state which transact a national bankins banking business shall hall be exempt from any taxation re regulating elating ula ting state banks section eleven provides that state banks shall not issue notes note similar ira 11 in fit design to united states notes or certificates or national bank notes CARLISLES explanation when he had bad concluded r reading ead ing the bill mr carlisle explained it in detail ile he pointed out the various sections of the present liw proposed prop oseI to be repealed concerning the condition condl tlona to be imposed upon state banks by this bill he sail said certain cert itin features had been added to meet criticisms made of the plan as i outlined in the annual report mr Bross brossius lus republican of pennsylvania a asked whether it was not d desirable es ir for the covet government antii nt to assume assum tile risk of redeeming mi 1 g notes rather tia than 1 a leave it to the banks mr carlisle answered in the negative ile he said paid lie did not believe in government responsibility further than thail in providing the most ample safeguards the secretary showed the pro ms fitti of national banks under the proposed plan as compared with their profits under the present liw he showed that additional profits and inducements ats would incline notional national banks to take out circulation in the course of tho the mr air carlisle said hi he did not think any immediate retirement of the united states stales treasury notes was practicable the secretary spoke of comptroller currency curr ency plan without wishing W to criticize c cIze he thought its fatal detect defect was in requiring national banks to take out two different kinds of circulation notes BOND AND GOLD SHIPMENTS the shipments of gold were discussed at in much uch le length nath mr arr carlisle said the loss 1055 0 of f go gold id was very y heavy after the passage of the sherman law the loss of our gold had brought on financial distrust and had threatened panic but I 1 aut there had been no real danger these panics largely the rerun of sentiment and public feeling instead of well based tears fears during a a genral general discussion between mr A ir carlisle and members of the committee the secretary referred to the issuing ot of bonds he said as much as regretted res rettea it lie he saw no way of pr preventing ehe ebe the further issue of 0 bonds bond s M long its as the present system remained mr air white was again questioned at af 4 fr the recess mr ellis of kentucky asked him it if national banks ban its would consent to become guarantors guaran tors for the th e notes 0 of all the banks ile he said at the outset lie he doubted doubled whether nation nil banks would |
