The record-union., 1894-12-22
SPRINGER WILL OFFER A SUBSTI-
TUTE FOR THE MEASURE.
This Decision Reached After a Caucus
of the Democratic Members of the
House Banking and Currency Com
mittee, Followed by a Conference
Between Secretary Carlisle and
Chairman Springer.
Chairman Springer.
Special to the RECoRD-UNIoN.

IL
substitute presented. This decision
was reached after caucus of the Demo-
cratic mem bers of the Banking and Cur
rency Committee, quietly held last night,
followed by a conference between Secre-
tary Carlisle and Chairman Springer to-
day. The substitute has already been
drawn, and will be offered by 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 adjournment. 1t differs very nateri-
ally from the original Carlisle bill.
Two very important features appear
for the first time in the substitute. The
original Carlisle bill contemplated that
all national banks must reorganize under
the new plan. This would have required
them to surrender the Government bonds
which now constitute the basis OF their
circulation. The substitute does away
with this imperative change. If the ma
tiOnal banks wish to continue to hold
their United States bonds, and issue a
circulation thereon, they may do so. 1t
Is ieiJ they will soon discover the advan-
tage OF the new system, and therefore
adopt.it voluntarily.
The other Important feature of the SUBJ
stitute is that 1t does away with the un-
known liability of the banks guarantee
OF the notes of all the other banks. The
original bill contemplated that if ma
tional bank failed it notes should be paid
out of It's assets and the general safety
fund.-" made up by all the banks. But if
the assets and safety fund were insuffi-
clent To pay the uotes OF the failed bank
tnen the Comptroller of the Currency was
to make a pro rata assessment on all the
n
this prospective assessment shouldered
them With an unknown risk, In effect
1t made them supply insurance on all
the notes OF banks i'll which they had no
concern. In view OF these criticisms, the
substitute will do away with the assess
ment 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
up this safety fund by more rigid pro-
visions than proposed in the original bill
y caucus OF the Banking and Cur
rency Committee Democrats was held
al the committee-room last night, the
following members being present:
Springer, Cox, Culbertson, Sperry,
Warner. Cobb (Ala.) and Ellis. The alb
sentees were Cobb (Mo.), Hall Mo. and
Johnson (O) 1t was reported that Secre-
tary 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
support which would secure its passage.
The needed amendments were formu-
lated, and when the caucus adjourned it
was not contemp plated that the Carlisle
bill should be more than amended. 1t
was arranged that Mr.. Springer should
see Secretary Carlisle to-day, and sub
NIT the contemplated changes. When
Secretary Carlisle and Mr. Springer met
to-day it was determined that the better
plan would be to frame new measure
in the nature of a substitute instead OF
mutllating the original bill with many
amendments which went to its vital
principles. Accordingly the substitute
was agreed to in full, and as soon as it
can be copied aud put in proper bill form
it will be presented to the House, and
thenceforth be the bill on which cur
rency debate is to be proceeded.
The substitute is substantially new
measure, although some OF the sections
OF the original measure are retained in
the new bill. The new bill is arranged
SO as to show the new features in paren-
thesis.
The first section is as follows: That so
much of all Acts and parts of Acts as re-
quire or authorize the deposits OF United
states bonds to secure circulating notes
issued by national banking associations
(or as require such associations to de-
posit or keep on deposit United States
bonds for any purpose except as security
for public money! he and the same is
hereby repealed as 10 the associations
taking out circulation under this bill, and
such notes shall not contain the statement
that they are so secured.
Section 2 is changed so that sbanks can
not only deposit legal tenders to secure
circulation. but also currency certificates
issued under Section 5l93 of the Revised
Statutes of the United States.
Section is retained entire, except that
its provisions are restricted to apply 10
national banking associations taking
out circulation under this Act"
Section 4 inserts 1.-The Comptroller of
the Currency" as the officer to designate
the place where notes are to be redeemed.
In Section provision is made for keen
ing up the safety fund in addition to the
terms of the original bill. 1t is provided
that the collection of said tax of one
fourth of one per cent. for each half wear
shall be resumed and continued un-
til the SAID fund is restricted to an amount
equal to five per cent upon the total cir
culation outstanding. All circulation
notes of failed banks not redeemed on
presentation to the Treasurer OF the
United States or an Assistant Treasurer
of the United States shall bear interest AT
the rate OF six per cent per annum from
the date OF the suspension of the bank un-
til three days after public notice has
been given that funds are on hand for
their redemption. and such notes shall
continue first lien upon all moneys
thereafter received into the safety fund.
Section q, allowing the Secretary OF the
Treasury TO invest the money in the
safety fund in bonds, is the same as in
the original bill.
Section Z is entirely new, and takes the
place of section which has been elimi-
mated. The new section is as follows.
That every national bank association
heretofore organized, and having bonds
on deposit TO secure circulation, NAV
withdraw such bonds upon the deposit of
lawful money OF the United States now
provided by law, and thereafter such as
soclatlon may take out circulation under
this Act, and be entitled to all the rights
privileges and immunities herein con-
ferred.o
Section specifies that the portion of the
National Banking Act to be repealed is
limited to so much of Section II 'sas di-
rects the Secretary of the Treasury TO re-
ceive deposits of gold, and to issue GER
tificates thereon.n
Section 8 is substantially as in the orig
inal bill.
Section 10, providing for State banks.
Is also the same as in the original bill
except that in the restrictions on State
banks new provision is made that the
guaranty fund maintained by them NAV
Include currency certificates issued