The record-union., 1894-12-12

Tor each haIi-year upon the average
amount OF its circulating notes outstand-
ing, until said fund amounts to five per
cent. of the total amount of national
bank notes outstanding, and thereafter
said tax shall cease y bank retiring or
reducing its circulation shall be entitled
to withdraw any part OF its fund. The
mode OF procedure in case Of banks
failure is outlined.
Section 6 allows the Secretary OF the
treasury To invest money belonging to
the safety fund III United States bonds.
Section : provides that July l, 1899
national banks now having bonds on de-
posit may withdraw them and substitute
the 30 per cent. guarantee fund.
Section repeaIs previous Acts conflict
ing with this measure.
Section provides that the Secretary of
the Treasury may, in his discretion, re-
deem and retire United States legal tender
notes; that no United States or Treasury
notes authorized by the Act of July
l, 1880, of denomination of less than SO
shall be issued.
Section 10 states that the banks duly
organized under the laws of any State,
which transact national banking bUsi-
ness, ShaIi be exempt from any taxation
regulating State banks.
Section IL provides that State banks
snail not issue notes similar in design to
United States notes or certificates or
national bank notes.
When he had concluded reading the
bill, Secretary Carlisle explained it in de-
| tail. he pointed out the various sections
OF the present law proposed to be re-
pealed. Concerning the conditions i'm
posed upon State banks by his bill, he
SAID certain features had been added TO
meet the criticisms made of the plan as
outlined in the annual report.
Mr.. Brosius asked whether it was not
desirable for the Government to assume
the rL4k OF redeeming notes rather than
leave IL 10 the banks.
Mr. carlisle answered in the negative
lie said he did not believe III Govern
ment responsibility further than in pro-
Yldlng the most ample safeguards. The
! Secretary showed the profits of national
banks under the proposed plan, as COM
pared with their profit under the present
law. lie showed that additional profits
| and Inducements would incline the ma
/ tIonal banks TO take out circulation. In
| the course Of the discussion, Mr.. Carlisle
said he did not think any immediate re-
tirement of the United States treasury
notes was practicable. The Secretary
spoke Of Comptroller EcEels' plan.
Without wishing To criticise it, he thought
lis iataI defect was in requiring national
banks TO take out two different kinds of
circulation notes.
The shipments of gold was discussed at
much length. MIR. Carlisle said the loss
OF gold was very heavy at the passage of
the sherman law. The loss of our gold
had brought on financial distrust and
had threatened panic. But there was no
real danger. These panics were largely
the result Of sentiment and public feel
ing instead of well-based fears.
During discussion between Mr.. Car
Isle and the members OF the committee
the Secretary referred to the issuing of
bonds. lie said that as much as he re-
GREETED 1t, he saw no way of preventing
the further issue of bonds as long as the
present system remained.
Mr.. Homer of baltimore then addressed
| the committee on the Baltimore plan.
He spoke OF the requisite that a bank
note be secure. The proposed plan un-
dertook to provide this requisite with
out the necessity OF Government bond.
Uniformity was another requisite Of safe
banking. it was also secured by the
proposed plan. SO that the system would
be truly national, uniform in all States.
Instead OF varying in each of the forty
Iour States.