Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1894-12-15
VIEWS VENTILATED.
Plans for Currency Revision Are
Explained.
Secretary Carlisle and Comptroller Eckeis
Discuss the Merits of Their Kespec-
tive Schemes Before the
House Committee.

WASHINGTON, Dec. IL. - Secretary
Carlisle appeared before the house
committee on banking and currency
Monday to present in detail the
features of the new currency plan
proposed in his annual report and
indorsed in the presidents message.
Mr.. Carlisle adopted an easy, con-
versational style of address. He
said he was ready to answer ques-
tions from the committee as well
as elaborate his own views. He
took up each section of his recent
recommendations First, repeal all
laws requiring or authorizing the
deposition of United States bonds as
securities for circulation and, second,
permit national banks to issue notes
to an amount not exceeding IS per cent.
of their paid-up and unimpaired
capital, but require each bank before
receiving notes to deposit guarantee
fund consisting of United States legal
tender notes, including treasury
notes of 1890 to the amount of
30 per cent. upon the circulating
notes applied for. This percent
age of deposits upon the circulating
notes outstanding to be maintained at
all times, and wherever a bank retires
its circulation in whole or in part, it's
guarantee fund to be returned to it in
proportion to the amount of notes re-
tired.
Mr.. Carlisle said he was satisfied that
the present law requiring the deposit
of bonds to secure circulation pre-
vented the elasticity of the currency.
1.-THE provision outlined" said Mr..
Carlisle, gives ample protection with
out the deposit of bonds as required by
the present law"
Chairman Springer asked how the
secretary's plan differed from the
Baltimore plan. Mr.. Carlisle ex-
planned the technical difference. The
Baltimore plan proposed deposit
of so per cent, under certain condi-
tions, while the treasury plan pro-
posed u deposit of 80 per cent. When
bank fails the treasury plan contem-
plated an assessment on all national
banks, they in turn having a lien on
the failed bank.
Mr.. Hall dem, Mo- suggested that
there was prevailing opinion that it
was unsafe to place the entire ques-
tion of expanding the currency in the
ut will work automatically" said
Mr.. Carlisle. Banks will not expand
the currency unless the public needs
it. Their interest will be to expand
and contract as the common interests
demand it. These interests will there
| fore control at all times"
The secretary stated that this f1exi-
bility was much more desirable than
rigid system by which fixed
amount of currency was always
outstanding. At one time the
stringency was so great that the
banks drew out 100000 under
pressure, and ii it had not been for the
Cana dian banks who sent currency
into this country serious results might
have ensued.
The Sc cretary said it undoubtedly
would, but that his plan would in
sure ample protection and therefore
ample confidence. He explained that
in case of the failure of a
bank its so per cent. goes in
to the general safety fund. If
the total of the safety fund
and the assets of the failed bank are
not sufficient to meet all the liabilities
without carrying the general safety
fund below the per cent, then all the
banks are assessed to meet the liabili-
ties. The banks then have a lien on
the assets of the failed bank.
A recess was taken until o'clock.
When the committee reassembled
Comptroller of the Currency Eckels
appeared and made his statement, a
synopsis of which follows:
Nothing he said, ought to be done by con-
gress looking to u change of the present bank
ing system unless the result should be bene-
hcial both to the banks and the public
The extent OF the banking interests OF the
country represent in capital $500, 900 900; in
deposits S3 400. 900 900. and in depositors
about 2,O0oOO0 Such enormous interests
being involved, any new system to be inaugu-
rated must at the outset command the conti-
dence of the people. The national banking
system now in vogue might be said to be ma
tional habit Most of those who made use
of it know little or nothing OF 9TH
er systems. Therefore nothing in the
present system shonld be altered unless ii
could be improved upon TO the promotion of
the business interests OF the people.
The scheme which he had suggested in his
report was intended to disturb as little as pos
sible the existing order OF things. In order to
make any system successful the note issued
must be Immediately, not ultimately, con-
verted into coin This was the first considera-
tion. After this came, II the banks could be
given the power to expand the currency in
times of stringency the two main objects OF q
currency system would be obtained.
1t is now proposed to give the banks val
liable franchise and 1t was proper that they
shall make u fair return. In order to secure
the current redemption OF these legal tender
notes the banks, for the privilege of issuing
notes on their capital stock against their as
sets should be made to deposit legal tenders
; with the government as u reserve fund. To-
day under the national banking act $l65, 100. .0Ol
OF legal tenders held for reserve funds were
taken out of circulation. Under the system
he proposed 30 per cent of the circulation
would be deposited in legal tenders, fol
which circulating notes would be issued dol
lar for dollar. This would in nowise de.
, crease the volume OF currency. The oper.
alton OF this plan would be to Immediately
withdraw 1910 900, 900 of the legal tenders from
the S4S0, 900 oof legal tenders now used Il
drain the treasury of gold. This should bs
done by every bank for the privilege of 1