The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-12-21
TOO FULL OF FAULTS
The Carlisle Currency Bill VIII
be Withdrawn.
A New and Corrected Measure
Will Take It's Place.
DECIDED IN CAUCUS.
Democrats Wanted Something
That Would Go Through.
The Substitute Lets the National
Banks Run Along.
DECIDED IN CAUCUS

WASHINGTON. Dec. 21.-The Carlisle
currency bill now before the house Of
representatives will be withdrawn and
substitute presented. This decision was
reached after caucus Of the Democrat
ic members of the banking and currency
committee quietly held last night, fol
lowed by conference between Secretary
Carlisle and Chairman Springer today.
The substitute has already been drawn
and will be offered by Mr.. Springer to-
day or tomorrow, certainly before the
holiday recess as the desire of all con-
cerned is to get it before the country
prior to the adjournment. It differs
very materially from the original Car
Isle bill
The caucus of the banking and cur
rency committee Democrats was held at
the committee room last night, the fol-
lowing mem bers being present. Spring
er, Cox, CulDerson. Sperry; " arner,
Cobb Ala j and Ellis, The absentees
were Cobb MOI. Hall (Alo), and john
son, (O.)
1t was reported that Secretary Carlisle
was present but this proves incorrect
The discussion took a wide range and
the sentiment was general that the bill
would have to be materially changed in
order to meet objections and command a
support which would secure its passage.
The needed amendments were fOrmulat-
ed and when the caucus adjourned it
was not contemplated that the Carlisle
bill should be more than amended. It
was arranged that Dir. Springer should
see Mr. Carlisle today and submit the CON
templated changes.
When Secretary Carlisle and Mr.
Springer met today 1t was decided that
the better plan would be to frame a new
measure in the nature Of substitute in
stead Of mutilating the original bill with
" "a IA
vital principles. Accordingly the sub
stItute was agreed to in full and soon
as il can be copied and put in proper bill
form, it Will be presented to the house
and thenceforth be the bill on which cur
rency debate is to proceed.
Two very important features make
their appearance for the first time in the
substitute. The main one viii have the
/ effect of allowing the national bank sys-
tenn to run along without any arbitrary
provision that banks must organize IN
der the new system The original Car
Isle bill contemplated that all national
banks must reorgdnIze under the new
plan.
This would have required them to sur
render the government bonds which now
constitute the basis of their circulation.
But the substitute does away with this
! imperative change. If national banks
wish to continue to hold their United
/ States bonds and issue circulation thereon
they may do so. 1t IS felt that they Will
soon discover the advantages Of the new
system and viii therefore adopt it vol
UNFAIRLY.
he other important feature of the sub
stitute is that it does away with the I'M
/ known liability of banks to guarantee
/ the notes Of all other banks This fea-
] ture of the original bill has been much
( criticised. 1t contemplated that if a ma
/ tional bank failed its notes would be paid
\ out of its assets and the general safety
/ fund" made up by all the banks But if
/ the assets and safety fund were insuffic-
/ lent to pay the notes of the failed bank
1 then the comptroller Of the currency was
Y to make a pro rata assessment on all the
/ banks Of the country.
VI The banks said this prospective assess
ment shouldered them with unknown
risk. In effect it made them supply in
( surance on all the notes Of banks il
which they had no concern.
In view of these criticisms the substi-
tute will do away with the assessnen
plan. The safety fund" will be the
limit of the joint liability of all the banks
for the failure of Individual banks They
will, however, be compelled to keep uI
this safety fund by more rigid provision.
than appeared in the original bill
Besides these two main changes, there
are many lesser ones. which were sum
married. as amendments in these reports
yesterday, but which viii not be incor
porated as a part Of the substitute