The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-18

the guaranty fund OF the failed bank
should be first expended in taking up
the currency notes Of the failed bank,
and that whatever additional sum was
necessary should be taken out of the
safety fund to complete .Aair redemp-
tionr and the safety fund should be re-
pienished out of the assets of the bank,
and if there was a deficiency in the
assets of the failed bank which was
made up out of the safety fund, that
all of the banks should be assessed to
make good the safety fund.
Permissive Legislation.
Whatever legislation is had with ref
erence to the finances Of the country
OF. banking in its effect upon national
banks should be permissive and not
mandatory as to national banks while
their present charters continue.
To provide as in section that every
national banking association heretofore
organized and having bonds on deposit
TO secure circulation, shall on or before
the 1st day of July, 1895, withdraw such
bonds and deposits with the treasurer
of the United States for a guaranty
fund consisting of United States legal
tender notes including treasury notes
cannot be Justified upon any principle
of safe legislation. Tt could not fail to
produce a panic and the reclSlesSness
of such legislation would startle not
only finaneiers in this country but in
the world.
Exemption of State Banks.
The provisions of exemptions as to
state banks, Notwithstanding the many
restrictions upon them, would drive
every existing national bank that de-
sires to take out circulating notes in
to the state bank, were it enacted. The
taxation of national bank notes Is one
half per cent per annum in section
and one-half per cent per anrlum under
section 5, making total of l per cent
per annum which would be a taxation
of five million per annum upon the
banks under the national system, which
there is no reason ITO believe from any
experience of the past would be i'm
posed upon them under any state SyS-
tenn. Furthermore, the states would be
far more liberal than the United States
will ever be or ought Ito be as regards
bonds or amy other security or redemp-
ton fund, for they may require the de-
post of no bonds whatever.
We cannot believe it was the inten-
ton of the trainers of the Carlisle bill
to make the conditions under which
the national banks should issue cur
rency any more onerouS than those
Imposed or likely to be imposed upon
state banks, or that it was the inten-
ton of Mr.. Carlisle or Of those who
now. enthusiastically support the Car
Isle bill or who will vote for it in
Congress, to force the national banks
to operate under state charters. And
yet such would be the inevitable eff
feet of the bill. The chairman, Mr.
Springer, presented letter to the
committee, read it and proposed to put
it in the Record, approving the Car
Isle bill from a veteran banker and
when asked if he had other letters
from bankers concerning the bill, he
replied:
Yes, many-ffty."
When asked if they all approved of
the bill, his reply was:
"Only this one"
Effect Of the Bill.
The passage of the Carlisle bill may
meet some political exigency of (which
we do not know, but we do know its
passage will aggravate rather than re-
Heve the perpleXities of the financial
situation, especially that of the United
States treasury.
The United States legal tender notes
Withdrawn from circulation in all the
rexisting national banks, take out all
the circulation permitted under the
bill would only be S151, 000, 600, still
leaving 1854, 200, 900 to vex the treasury
This would not afford any substantial
relief to the constant drain of gold
from the treasury. 1t would make still
more conspicuous and thus more urg-
emit, the demand for gold upon the
treasury, and the notes issued under
the bill would make confusion worse
COMPOUNDED in the currency by adding
from one to forty-five more kinds OF
money to these already existing. Twice
within a, short time has the House de-
clared its unalterable opposition to al
lowing state banks to issue currency
notes-once on June 6, 1892, by vote
of "a to 113, and again under the lea
dership against state banks of the gal
liant and versatile gentleman from Hi
nois. the Hon. William NJ. Springer
on June 6, 1894, by a vote to repeal the
10 per cent tax, of 102 to liz.
A Protest Entered.
Therefore we protest again against
consuming the time of the House in a
profitless discussion of the objection
able section of the Carlisle bill. Final
", we are of the opinion that it is not
safe for the House to enter upon the
line of the legislation proposed until
some bill is brought before it that has
received far more attention than the
Carlisle BILL and we recommend thai
it be Indefinitely postponed.
The report is signed by the SIX Re
publican members of the committee.
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