The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1894-12-22
Two REPORTS.
Presented to tho House on the
Carlisle Currency Bin.
rhe Majority Urges Its Early consldera-
ton and Adoption-The Minority
Depiorcs Haste and Wants
It Referred.

~
of Illinois. chairman of the banking |
ana currency committee, submitted !
on Monday his report accom-
panying the Carlisle bill The
committee, the report states Is OF
the opinion that a security to the
full amount of the circulating notes
issued is no longer necessary for the
safety OF the notes The bill, the pas
sage of which is recommended by the
committee, does not require the de
oosit of bonda OF the United States or
of any other interest-bearing obiga-
ton, but in lieu OF such security pro-
vides as follows
4 A guarantee fund consisting OF treasury
notes Including tho notes issued under the act
of congress approved July II, 1920 equal 70 ~
Der eentum Of the circulating notes applied
for
. safety fund, which viii amount when
reaches IT'S maximum, 20 per cent. upon the
total amount OF national bank notes outstaha-
-4ng -.
4 nrst lien upon All the assets OF the assoc
citation Issuing the same
In case the guarantee and safety
funds and the assets OF n failed oank
are not sufficient TO redeem the notes
OF such bank. pro-rata assessment
upon allrother banking assoeiatons'
according to the amount OF their out
standing circulation, is 20 be made
by the treasury department, and the
hanks so assessed shall have first lien
anon the assets of each failed bank
for the amount properly chargeable To
such bank on account OF the redemp-
ton of its circulation. IL Is believed by
the committee that the funds
thus provided viii be amply
sufficient 10 secure the notes Of
failed banks The bill limits the
amount OF circulating notes which
any bank may issue TO % per cent OF
SIS capital stock During the great
financial crisis OF 1898 los national
banks suspended payment, having a
capital stock Of o,350oOO. The re-
port saws
Tho facts set forth demonstrate concius-
fyely that II the proposed bil had been Ia
force during the crisis ~ lev3, y oil inc
banks had heretofore taken out circulation
90 the maximum amount allowed ny law
and IL tho failed banks had also taken out
their maximum circulation, the guarantee ana
safety funds would have been ample TOT lht
payment OF the entire circulation " the out
standing notes, and would have lelt sur plu'
OF over tli 0oOOQO stul IN the haie9
crisis OF that kind. 81 making ans as
sessment on the resources Of the other ma
tlonal banks. Ia view Of these facts your com
Inlttec arc of the opinion that should the pro
posed bin become "a law the notes Mhlcl
would lie issued undcr 10 would be absolutel
safe under any and all possible business con
sditons.
In conclusion the committee say:
The extraordinary conditions which con
front tho treasury department have con
tftftre Of
committed. while not agreeing 10 al IN
rrovislons OF tho bill nor 10 All "a
reasoning employed In TINS report
concur IN reporting the measure 20 inc nous
Tor It's consideration, each reserving 70 hlmse
rhe right 20 offer such amendments - he ma
deem proper. and 70 vote on the blll AhA4l9
hc may determine.
The report Of tho minority was presented ;
Mr. walker rep, Mnss). II refers 70 "
haste with whchthc party majority not "
voting maiority-of the committee prcsentt
enc measure, and says this haste II q
the more inexplicablc in view q the fact "
Secretary Carlisle testified that this ~
which ne had drafted himself for the fcheI
thp treasury, would not Ia any event relieve
materially Tor hyo years and might not I
1w,nty years
The report states that tho whole action
Yho party majority OF the committee was mo
extraordinary aud not approved by Us Notll
majority. Tho bill was only read IN comnltt'
Ga part on one occasion and an opportuni
10 consider or amend II was reius
both 20 tho democratic and repa
llcan members The report eontlnp
chat II ia ue opinion OF a number
the most clear headed and eminent hnaneie
or the country that II the Carlisle bill Is e
acted into law that IL VIII within tNen
days preeiptnte panic Far moro severe IN
that OF 1898, rs 10 would compel the forced "a
anon the market Of nearly S2OOOl)OJ0 worth
United States bonds within six months.
The report says that whatever legislation
had with reference 10 tho finances OF the Gov
try or banking in It's effects upon natol
banks should be pcrmissvc and not man'
tory as TO national banks while their prcs'
charters continue
In tho opinion OF the minority the provisi'
OF excInptlons as 20 state banks would Or
every existing national bank that desires
20 take out circulating notes into Inc ~
bank system II the blli were enacted
hamilton OF national banks would amo unit
eS0oOOOO annually under the present U
which there N no reason 20 believe Woala
imposed upon thom under the state system
me report directs attention 20 the fact
All OF the witnesses who appeared before
committee objected seriously 70 inc puL
those who did not repudiated many Of Us
fions upon cross examination.
The report continues
.,arne tassare Of the Carlisle bin may n
some political exigoncy OF which we 90
know bat VIC do know that its passage VIII
gravate, rather than relieve the potpieA,
81 the hnnuclal tltuhtivh anu taf,,'f'
OF the United States treasury Inc On
states legal tender notes Withdrawn from
culation. did al existing national banks
out all tho circulation perndned under
bul would only be Sl5ioo0to0, stu lea
e95O 100000 TO vex tho treeAiry. This w
not arord any substantial relief 20 the
stant drain al gold from thu treasury
would make still moro consplcuous ana
more urgent the demand fot gold upon
treasury and the notes issued under inc
.ls. Morse
Tho currency bv ndding from one 20 forty
more Kinds OF money 20 those already eNs
"Finaily. we are OF the opinion that !
SAFE for the house 90 enter upon tho IN
legiaiatlon proposed until some Oil ~ uro
before IL that has received far more after
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