The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1894-12-11
Secretary Details the Fea-
lures of His New Plan.
HOUSE COMMITTEE ON BANKING
National Banking Laws should Not be
Altered--InJustice Done the State
Ofw washtngtOn--In the House.

WASHINGTON, Dec. 10.-Secretary Car
Isle appeared before the house COM
mittee on banking and currency today
to present in detail the features of the
new currency plan proposed in his an
nual report and indorsed in the presi-
DENTS message. Besides the full mem
bership of the committee Senior Romero,
bers of congress were present. Carlisle
took up each section Of his recommen-
dations.
First-To repeal all laws requiring or
authorizing the deposit of United States
bonds as security for circulation, and
second, to permit national banks to issue
notes to an amount not exceeding rs per
capital, but to require each bank before
receiving notes to deposit a guarantee
fund consisting of United States legal
tender notes of 1890, to the amount of
80 per cent upon the circulating notes
applied for.
This percentage depends upon the cir
culating notes outstanding to be main
IehlAO0 oil LAh1CSs eAO WhCAOfOA I4O
bank retires its circulation in whole or
in part, its guarantee fund is to be re-
turned to it in protection to the amount
of notes retired.
Carlisle said he was satisfied the pre-
sent law requiring the present deposit
Gf,a bond to secure circulation prevented
an elasticity of currency. He said:
''The provision outlined gives ample
protection without the deposit of bonds
as required by the present law
Carlisle said the practical value of the
reserve fund currency was shown in 1898.
There was demand for money, aggre-
eating $400,000,000. The treasury did
its best to meet the stringency, but by
the time the notes were ready to dis
tribute the demand had gone by, and
many of the packages of notes were re-
turned unpaid.
The secretary invited criticism on this
particular section.
Chairman Springer asked how the
secretary IS plan differed from the Balti-
more plan.
Carlisle explained the technical differ
ence. The Baltimore plan proposed a
deposit of so per cent under certain con-
ditions, while the treasury plan proposed
a deposit of 80 per cent. When a bank
fails the treasury plan contemplates an
assessment on all national banks, they
in turn having a lien on the failed bank.
Representative Hall, of Missouri, sug-
gested there was a preyailleg opinion it
was unsafe to place the power OF the
currency in the hands of corporations
and banks.
'It will work automatically said
Carlisle The banks will not expand
the currency unless the public needs it.
Their interest will be to expand and con-
tract as common interests demand it.
These interests will, therefore, control at
all times.''
The secretary further said: ''This
hexibility was much more desirable than
a rigid system, by which a certain
amount of currency was outstanding.
At one time the stringency was SO great
the banks drew out $13, 900, 900, under
pressure, and if it had not been for the
Canadian banks, who sent currency in
to this country, serious results might
have ensued."
Controller of Currency Eckels ap-
peared before the committee and made
an elaborate statement. He contended
the national banking laws were not to be