New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-12
Iby TELEGRAPH TO THE TRIBUNE.

ready 10 express an opinion yesterday. one was
that the guarantee funds OF State banks organized
under his plan should BE- deposited with ana Kept
by State official designated and authorized by law
in the respective States. The other was that STATE
banks should not be prohibited from issuing notes or
a lower denomination or of lower denominations than
SO
In support of this part of his scheme, the Secre-
tary remarked that these small notes would De
great convenience to the people of the negnoor-
hoods or communities In which the banks were
situated and TO which their circulation. in his
opinion, would be chiefly confined. Ihis r'marh' "S
well as several other observations OF secretary 'a
isle yesterday and to-day, showed that MS scheW"
| % interpreted by himself far from contemplating
a reduction in the number OF kinds or currency III
circulation under the authority of the General Gov
eminent provides for adding another Kind when Is
designed to perform "A function tnat Natohai DAMN
notes are not be allowed to perform To the extent
the small notes of State banks enter Into circulation
whether local. as the Secretary presupposeS' or
reneral-they would displace silver dollars or sVer
certificates Of small denominations Bui. in discuss-
ing the suhicc, of currency legislation in his annual
report which was submitted to the House Of Rep
rcsentatives only a week ago. Secretary CarhSe
among other things. said:
The fact that circulating medium IS composed
OF SO many different kinds Of currency would seem
to require the enactment OF such leglsnlon Is WIN
provide place in which each can be saiely ana en-
veniently used. and as mis- can De nohc '..". 10
elimination against any Of them IT ought no, To ne
cmel r from any 2an mn orer TO prov Wider
field for the active circulation Of our SILVER CONS
anl certificates. which now constitute ABOUT on
nth Of the entire volume Of our currency ana 70
protect the Treasury nc far as posslh.c' asSs, %
customs and other dues TO the Government IT is
proposed that no National hanH-noie OF less de-
nomination than 80 shall be issued
HARD POINTS TO RECONCILE
II will bc rather difficult for the friends Of the
Carlisle plan in Congress, II 1t has any 10 recon-
Gle its provisions 20 increase the number OF xmas
of currency. to discriminate against National banks
and IN favor OF State banks. not only In regard TO
the safety fund requirement and tn" imposition OF
A tax TO pay expenses Of administration. ''c.' p"'
in regard 10 the lower denominations "i notes !"
discriminate against National bark notes and silver
certificates in regard to the lower denominations
Of notes end to choke or at least hinder the free
circulation # silver certificates OF lower denoninh
tons by injecting many millions OF cheap Sta'e
bank notes into circulat on-it VIII indeed be nl'h-
cult 20 reconcile these provisions with the ut'ed0's
above quoted.
Secretary Carlisle again to-day expressed the opln-
ION that State bank issued In accordance win
bie rlsn would be reasonably safe" He admitted
however trat the security for the ultimate recemp
ton Of 20 per cent Of the notes Issued wouid not
he as good in the case OF state BANK as III 'i'"'
If National bank The truth seems TO be that
in broaching and advocating his currency schehe
tho Secretary Is trying carefully TO pick his way
through A fed bese; with many pitfalls ana ODD
structions while he Is al the same uhle h'eP'"o
his weather eye open and all his iaculues %" "'e
alert 10 avoid saying doing anything tha' fh'sh'
hecloud his own political future. very bogSy par
Of the field for him is that wherein he Is coniroh'eu
-. tho silver question and the State bank question:
both Of which he might be strongly usp'Se' I"
settle in favor Of the silver and state pahH 'n"a
tonists II he had the power As matters S''"''
however he Is compelled TO veil his hosu"''S i"
the National banking system as deeply as possible
he.
porters. Go
In expressing his opinions on certain natter 80"
retorv Carlisle wobbied perceptbly To-Day fo' -
annie h.. at frs, insisted that the deicit III 'l'
public revenues had nothing TO 90 with me u.''
cultv OF maintaining the gold reserve. ana T."
,,,,,es afterward he admitted that II was power
f,I factor in the depletion OF the reserve ~
cou,d not see any immediate prospect Oh "''''"'e
the necessity OF frequent bond issues IN o'u,' ~
maintain the gold reserve As "nE as '"e 'e"'
tenders are redeemed with gold alone instead %
ho.h gold ana silver. in order to maintain the par
49, - Tho two n.ta.s OF course. ne added mat
49,, o,.orues were abundant some gold would 10"
,,o tho Treasury to replenish and strengthen l"e
reserve.
prAsoNs FOR THE GOLD OUTFLOW.
,, co.ra,arv was strongly inclined 70 insist
,A r,ost no,ent cause Of the constant Dram
- ,ho reserve was the dis,rust excited D. '"e
,,,-cb,. 40 of silver bullion ana the isSue VI ''
NV notes under the act OF 1888. when hau '"''
'' ,o,,on ~ inward Of sJo0"G0 In soid.
when MIR Walker asked whether me "'"''"'
mot greatly intensified b. the lnpd'i'"'n' " w.
-, o.a-,a the Secretary replied In the Affirmative
Ian, declared that the most potent cause .. ~"
nor,atlon OF gold WAS the issue ol 'he i''"'''s
o,es He also declared with CONSIDERABLE c'"P"a''
.A, ,here had not been at any time any "o'"''
danger that the United states "o'' '"'' "
an its legal-tender notes III Eou' g., -,
H. .r,,icising the Fckels plan when ne sal" "e
,,d no, like 10 d. because he mad not io"''' '''''
| IN stuay IT carefully Secretary 'aihSe
! ia lack his usual clearnesS OF statement ~
- an. affection TO II az fatal. and that was
mat il required TIE National banks 10 pun ou' W.
| kinds Of currency, one-naif b'seu On "'poo''-
lagaltend.r notes and the other half on comie'c'a
credits He ga not believe that the Na,oha' o','"'
| would take out circulation under the hcHe'S pm"
| hut confessed that that was Il ha'''' ''e"''n
nh,c, bis op,nion was not entitled To great weight
| ,comp,r.d with that OF "A practical Danh''. i"'
| Secretary also contended that his plan "o''a give
| ,e q,ea, elasticity the currency as wouIh the
Baltimore plan. but his explanation % ~" ''"S"'
for his opinion seemed to lack point ana c'ar"e'a'
| y probably would not be an uniar cri'I'lS" W
sav that Secretary Carlisle did not appear to unde'
staud his own plan. OF. at least what I's pro"ipi'
opera,lons and results would be- veil enough to De
| able 70 impress the minds Of members Of Inc COM
mittce ard convince them OF It's ntrts. IL s"sie
| one OF them either Democrat or hepuphcah
would be willing to support the plan as embodied IN
| the draft Of bin submitted by the Secretary OF
The Treasury to-day he has succeeded In conceaiing
| IN. fact down to this hour On the other mana a
| number Of the members of the committeo-Demo-
! Gratis as well as Repubcans-havc openly expressed
their strong disapproyal OF different proViSiohs'
| and several OF them have declared that the scheme
is mpracticabe and in several respects dangerous
! one.
Mr. Carlisle read statement concerning the
profits to the banks under his plan. on capital OF
100000 a National bank would deposit 30 per cent
/ of this amount and take out $4,000. It's profits for
/ each year until the safety fund OF per cent was
deposited would be s912 30; after that 4 would he
! 27 SO. Under the present system National pank
on a per cent bond would reaze a profit Of SEH:
on a 4 per cent bond. $3.50 3d. on > Per cert bond.
! Al