The record-union., 1894-12-12
SECRETARY CARLISLB'S NEW BILL
ALSO PRESENTED.
The Senate Continues Its Consideration
Railway Pooling Bill as Reported
by the Committee, With Few I'm
important Amendments, Passes the
House.
specialt to the REcoRD-US1ox.

ton of the currency laws was resumed
to-day. Among those present were
Horace White of the New York ECcntng
Post, q. Homer of Baltimore, Chairman
OF the Committee on National Bankers, to
formulate the so-called Baltimore plan,
and X. T.. Hepburn of New York, eX-
Comptroller of the Currency. These gem
tlemen represent the currency ideas en-
bodied in the Baltimore plan.
1t was expected that Secretary Carlisle
would present his currency bill and con-
tnue his statement but as he was late
White opened the hearing. In answer to
questions he stated he had drafted bill
on the lines of the Baltimore plan, and it
was arranged that this bill would be
placed before the committee. White S
statement was read from manuscript ana
was carefully prepared review OF the
banking question. At the close OF w hIte' s
statement he submitted his bill on the
Baltimore plan.
The first section provides that no bank
ing association shall be required to de-
post United States bonds, either as a
preliminary to the commencement of
banking business or for the security OF
circulating notes to be hereafter issued.
Section provides that in lieu OF the
deposits OF bonds each national banking
association shall be entitled TO receive
circulating notes from the Comptroller to
the amount Of per cent. OF its paid
out unimpaired capital, upon paying to
the Treasurer OF lawful money TO the
amount of per cent. OF such circulating
notes, and thereafter a tax at the rate Of
One-half of / per cent per annum upon
the average amount OF It's circulation IOr
the year. The l per cent. and the pro-
ceeds OF the tax are to constitute guar
antee fund for the redemption OF notes OF
insolvent national banks, and the tax is
to be collected until the fund amounts to
less than per cent. oil the entire circula-
non issued. This fund Is also to be in
addition to the D per cent. redemption
fund now provided by law.
Section ) provides that IN addition to
the amount of the circulating notes pro-
vided for, each association shall be enti-
tied TO receive from the Comptroller cir
culating notes to the amount OF % per
cent. of its paid-up unimpaIred capital,
upon paying to the Treasurer per cent.
OF such additional circulation, and tax
OF one-haIf OF per cent. per annum on
the average amount of the same OUT
standing and an additional tax at the
rate of per cent. per annum upon the
amount of such additional circulation
outstanding for the year, all OF which
sucn sums are to be a part OF the guar
antee fund.
Section 6 is devoted to the insolvency
of National Banking Associations, and it
is provided that when such insolvency is
ascertained in the case OF any particular
association its outstanding circulating
notes shall be redeemed by the treasurer
of the United States out of the guarantee
fund, ii that be sufficient, and II not
sufficient, out OF any fund IN the treasury.
A tier the loss on account OF any parEcu
lar failure has been made good to the
guarantee fund, the United States is first
10 be paid for ali advances made.
Section Z. Associations applying for
circulation after the first payments into
the guarantee fund shall have been made
shall receive circulating notes from the
Comptroller upon paying into the fund Il
sum bearing ratio to the circulation ap-
piled tor and allowed which the guarantee
fund bears to the total circulation out
standing.
Section provides that whenever bank
notes are issued to any association under
this Act ii shall be the duty OF the Secre-
tary OF the Treasury TO cancel legal ten
der United States notes and treasury
notes TO the amount Of per cent. Of the
banks notes so issued.
Section Il provides that any associa-
tion may retire its circulation or any part
of it at any time, upon deposit with the
Treasury an amount equal TO the sum
desired to be Withdrawn.
Section L repeats Section of the Act of
July Il, 1882. and also portion of the
Act of June 20, 1874, which provides that
the amount OF bonds on deposit for Cir
culation shall not be redeemed below
500. .000 and provides that any association
heretofore organized desiring to with
draw its circulating notes in whole or in
part may do so under the provisions of
the Act of July 70, 1874, modified as above
indicated.
Walker of Massachusetts asked if the
bill presented by " hite would secure a
safe and uniform currency.
at will have that tendency" said Mr..
White.
'That is not it," said Mr.. Walker. "We
do not want TO provide tendency to-
ward safe currency. but the actual
safety"
Il am not omnlscient," suggested Mr..
White. He added that in his Judgment
the bill would secure an elastic currency.
Secretary Carlisle came in at this point,
and was an Interested listener to Whites
answer to questions as to the want of
elasticity in Carlisle's currency bill.
Warner OF New York asked what re-
strictions should be imposed on State
banks.
banks to the same regulations as those
imposed on National banks.
Cox of Tennessee asked if this would
not do away with the State banks
White answered that it would. He said
that he believed in one uniform banking
svstem-not State systems, there being
forty-tour States.
Secretary Carlisle then resumed his
statement begun yesterday. He pre-
sented the bill he had prepared, embodv-
ING his plan of currency, to the commit
tee, commenting on it as he proceeded.
In the first section ali Acts in relation to
the deposit OF United States bonds to
secure circulating notes OF national banks
are repealed.
The second section provides for the is
suing Of circulating notes to a national
bank equal to IS per cent. of the paid-up
and unimpaired capital, upon depositing
legal tender notes with the United States
equal to 80 per cent. of the circulating
notes applied for. These circulating notes
shall be in denominations OF $40 and null
tiples OF ten, and shall be uniform In de-
sign.
Section levies duty of one-quarter
per cent. for each half-year upon the
average amount OF a banks notes in Cir
culation.
Section provides for the mode of re-
dempJion and retirement of banks Cir
culation.
Section 5 creates the safety fund for the
prompt redemption of circulating notes
and failed national banks. Each ban X
shall pay to the United States Treasurer,
in the months of January and July in
zach year, a tax of one-quarter per cent.