Great Falls weekly tribune. [volume] (Great Falls, Mont.) 1894-1???, 1894-12-14
QUACKS At WORK
Carlisle Attempts to Show That lie
Can Doctor the National
Finances.
A STATE BANK CURRENCY
Recommended as a Panacea for All
the Evils That Are Now
Existing.

WASHINGTON, Dec. 10.-Secretary Car
isle appeared before the house commit
tee on banking and currency today to
present in detail the features of the new
currency plan proposed in his annual re-
port and endorsed in the presidents
message. Besides the full membership
Of the committee. Senior Romero, the
Mexican minister, and many members of
congress were present. Carlisle took
up each section OF his recommendation.
First, the repeal of all laws requiring or
authorizing deposit of United States
bonds as security for circulation; and,
second, to permit national banks to issue
notes to an amount not exceeding IS per
cent. Of their paid up and unimpaired
capital, but to require each bank, before
receiving the notes, to deposit guaTan-
tee fund consisting Of United States
legal tender notes, including treasury
notes of the issue of 1890, to the
amount Of 30 per cent. on the circulating
notes applied for; this percentage OF de-
posits upon circulating notes outstand-
ing to be maintained at all times, and
whenever the bank retires its circulation
in whole or IN part the guarantee fund
is to be returned to it in proportion to
the amount of notes retired. Carlisle
said he was satisfied the presnt law re-
quiring deposit of bonds to secure the
circulation. prevented elasticity of the
currency. "TLe provision outlined" said
Carlisle, ''gives ample protection without
the deposit Of bonds as required by law"
He said the practical value of il reserve
fund in currency WAS SHOWN in 1888.
There was demand for money aggre.
eating $40,OOOC0O The treasury did it's
best to meet the stringency, but by the
time the notes were ready to distribute,
the demand had gone by and many of
the packages of notes were returned un-
paid. The secretary invited crtcism on
this particular section. Chairman
Springer asked how tho secretary's plan
differed from the Baltimore plan. Car
lisle explained the technical difference.
The Baltimore plan proposed a deposit
OF SO per cent under certain conditions,
while the treasury plan proposed a de
posit of 80 per cent. When bank failed
the treasury plan ontempiated an assess
ment on all national banks, they in turn
having lien on the failed bank. Repre-
sentative Hall of Missouri suggested that
there was prevailing opinion that it
WAS unsafe to place the power of the
currency in the hands of corporations
and banks. ut will work automatically, >
said Carlisle, "the banks will not expand
the currency unless the public needs it.
Their interest will be to expand and con-
tract as the common interest demands.
These interests will, therefore, control
at all times" The secretary stated that
this fiexibility was much more desirable
than the rigid system by which a certain
amount OF currency was outstanding At
one time the strlngency was 80 great that
the banks drew out $13CO0,OOO under the
pressure, and if it had not been for the
Canadian banks, who sent currency into
this country serious results might have
ensLed