Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1894-12-20
THE CURRENCY QUESTION
Carlisle Outlines His Views Before
tho House Committee.
Editor White Also Formulates Measure
Mr.. Ferris Ideas-Banker COrnwen
Has q Plan-Dodsw0rth
Is Heard.

Editor White Also FOrmulates . Measure
mr.. Ferris Ideas-Banker Cornwen
Has Plan-Dodsworth
Is Heard.
WASHINGTON, Dec. 14.-The hearine
before the house banking and cur
rency committe on the question of q
reorganization of the currency laws
was resumed in the room of the ways
and means committee, but did not
move off very promptly.
1t was expected that Secretary Car.
Isle would present his currency bill
and continue his statement of Mon.
day, but as the secretary was late in
arriving, Mr.. White, editor of the
New York Evening Post, opened the
hearing. Mr.. johnson asked Mr..
White opinion on Secretary Car
isles currency plan. Mr.. White an
swered that he did not think the Sec
retary's plan would give the elastic
currency it sought to secure It com
PEELED banks to put up thirty cents
every time they issued seventy-fve
cents.
At the close of Mr.. Whites state
ment he submitted his bill on the lines
of the Baltimore plan. Mr.. Homer
stated that the committee of national
bankers had not yet formulated their
bill.
The following is synopsis of the
bill presented to the banking and cur
rency COMMITTEES by Horace White
; The first section provides that no bank
Ing association shall he required to de-
posit United States bonds either as prelimi-
nary to the commencement of banking bust
ness or for the security of circulating notes to
be hereafter issued.
Section 2 provides that in lieu OF the depos-
its Of bonds each national bank association
shall be entitled to receive circulating notes
from the comptroller to the amount of -
per cent. OF it's paid-up, unimpaired cap
ital, upon paying to the treasurer law
full money to the amount of 2 per
cent. of such circulating notes. and there
after tax ut the rate of one-half OF
per cent per annum upon the average amount
Of its circulation for the year, to constitute a
guarantee fund for the redemption OF notes Of
insolvent national banks. and the tax is to be
collected until the fund amounts to not less
than per cent. of the entire circulation issued
This fund is also to be in addition to the per
cent. redemption fund now provided by law.
Section provides that in addition to the
amount Of the circulating notes provided for
each association shall be entitled to re-
ceive from the comptroller circulating notes
to the amount OF rs per cent of its
paid-up. untmpaired capital upon paying
to the treasurer per cent OF such addition
al circulation, and that the tax of one
half Of per cent per annum upon the average
amount Of the same outstanding and an addi-
0n11 fnv OF !, rato Cf A
upon the amount of such additional circula-
ton outstanding for the year. all Of which
sums are to be q part OF the guaranty fund.
Section is devoted to the insolvency Of
national banking associations. and it is
provided that when such insolvency shall
be ascertained in the case of any par
ticular association its outstanding circu-
treasurer Of the United States out of the
guaranty fund II that be sufficient, and il not
sufficient out of any fund in the treasury.
After the loss on the account Of any particular
failure has been made good to the guaranty
fund the United States Is first to be paid for
all advances made.
Sec. 7, Associations applying for circulation
after the first payments into the guaranty
fund shall have been made may receive circu-
lating notes from the comptroller upon paying
into the fund sum bearing ratio to the cir
culation applied for and allowed which the
guaranty fund bears to the total circulation
outstanding.
Section provides that whenever bank notes
are issued to any association under this act it
shall be the duty OF the secretary OF the treas
uIy to cancel legal tender United States notes
and treasury notes to the amount Of SO per
cent. Of the bank notes so issued.
Section 10 provides that any association may
retire its circulation or any part OF it at any
time upon depositing with the treasurer an
amount equal to the sum desired to be with
drawn.
Section ~ repeats section of the act OF July
l2, 1892 and also the portion OF the act OF June
20. 1874, which provides that the amount OF
bonds on deposit for circulation shall not be
reduced below $50, 200 and provides that any
association heretofore organized desiring to
withdraw its circulating notes in whole or in
part may do so under the provisions of the
act of June 20, 1874, modified as above indi-
Gated.
Carlisle's Bill.
At the conclusion of Mr.. Whites re-
marks Secretary Carlisle appeared and
presented a draft of his proposed bill.
A synopsis is as follows:
In the first section all acts regulating the de-
post Of United States bonds to secure circu-
lating notes of national banks are repealed
The second section provides for the issuing
o Is per cent. of the paid-up and unimpaired
capital, upon depositing legal tender notes
with the United States treasurer equal to 80
per cent. OF the circulating notes applied for
These circulating notes shall be in denomina-
tions of $40 and multiples Of ten, and shall be
uniform in design.
Section levies a duty Of n per cent. for each
half year upon the average amount Of a banks
notes in circulation.
Section provides for the mode of redemp-
ton and retirement OF banks circulation.
Section creates the safety fund for the
prompt redemption OF circulating notes OF
failed national banks Each bank shall pay to
the United States treasurer In the months
of January and July in each year tax OF
n per cent. for each half-year upon the av-
erage amount of its circulating notes outstand-
ing until said fund amounts to 5 per cent OF
the total amount OF national bank notes OUT.
standing, and thereafter said tax shall cease.
A bank retiring or reducing its circulation
shall be entitled to withdraw any part OF this
fund The mode OF procedure In case Of a
bank s failure is outlined
Section allows the secretary OF the treas
ury to invest money belonging to the safety
fund in United States bonds.
Section provides that on July 1, 1895, ma
tional banks now having bonds on deposit may
withdraw them and substitute the 80 per cent
guarantee fund.
Section repeats previous acts conflicting
with this measure.
Section provides that the secretary Of the
treasury may, in his discretion, redeem and
retire United States legal tender notes; that
no United States or treasury notes authorized
bv the act of July l, 1890. Of a denomination OF
less than $40 shall be issued
Section 10 states that banks duly organized
under the laws of any state which transact no
other than banking business shall be ex-
empt from taxation under the laws Of the
United States under certain conditions regu-
lating state banks
Section II provides that state banks shall
not issue noIes similar In design to United
States notes or certificates or national bank
notes.
Thursday's Session.
WASHINGTON. Dec l5.-There was
again large attendance at the meet
Ing of the house committee on bank
ing and currency, Thursday morning.
A number Of eastern bankers and
fnanciers were present and presented
their views on the Carlisle and Balti-
more plans.
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