Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1894-12-11
BANKING SCHEMES DISCUSSED.
ana Eckels Before the uor..
Banking Committee.


na Eckels Before the yyou..
haokinE COMMITTEES.
AshiNGToN, Dec. 1.-THE nrinc;p.,
"'erest at the Capitol centered A., r.
'oom OF the committee of views and n,o.n.
wnere Secretary Carlisle and Co,nnt.o,,a,
eAc'S appeared by invitation before the
o"sc committee on banking and CURRENCY
oAp'"ih and advocate the new BANKING
pan prepared by those two officials .nd
'hoorsed by the presidents messape Tho
.ooih was crowded with members of tho
ana intense interest was mani.
'eS.eo' secretary Carlisle was examined
ah" cross-examined by the members Of
% 0onn,h,.cee. He had the rough draft
oiii In his possession, but after his
examination it was concluded to revise II
oeiore submitting it to the committee
carlisle and Eckels differed somexb.t .s
10 the details of the proposed banking
'o"e'ne Out agreed upon the principles to
govern it.
Considers State Rank Notes Safe.
Carlyle explained his plan as it was ex.
P'ahed In these dispatches n few days
ago us 10 It's features, and also explained
'he dinerencc between it and the Balti-
more plan. The Baltimore plan pronosed
deposit OF 50 per cent, under certain
conditions, while the treasury plan pro-
posed deposit of 30 per cent, was one
dluercnce. He contended that the plan
would apply the element of elasticity"
That was needed, and this would work
automatically. Carlisle then took m
section IL, the ''state bank" feature of his
plan. He said as to this that he would
consider such state bank notes safe-per
maps perfectly safe would be too strong
but reasonably safe.
Question of State Bank Tax.
He said that state banks would be taxed
IL they refused to observe the conditions
imposed on them. My position would
lead to the logical conclusion that all tax
on state banks should be repealed" said
the secretary. But that may not be prac-
tical at present. But there should be the
least exercise of authority possible. We
do not insist that they shall do so and so.
bu.twe say If you do not do SO We will
tax you
johnson of Ohio referred to the old wild
cat days. THAT is thing of the past"
said the secretary. You could no more
resume the wildcat system than YOU
could revive tho conditions which made it
possible. We have advanced far beyond
the possibilities of a wildcat system"
Cariisic's Bill To Re Printed.
After some more debate on the control
of state banks Carlisle said in his opinion
the tax on those banks was unconstitu-
tional; the courts thought otherwise, how
ever. He then said he would submit his
bill and appear this morning if desired to
go over it in detail. 1t was arranged to
have the bill printed. A recess was taken
and when the committee reassembled,
Comptroller of the Currency Eckles ap-
pcared and made his statement. Nothing,
he said, should be done by congress look
ing to a change of the present banking
system unless the resultant should be ben
eteial both to the banks and the public.
The extent of the banking interests of
the country represent in capital $3.50, ,0O0,-
900, in deposits 81, 4oO, 100000, and In de-
positors 2,cOo,090 Such enormous inter
ests being involved any new system 10 be
inaugurnted must mt the outset command
the confidence of the people. In this
country the note-issuing function was an
incident. the deposit accounts the princi-
pal. In other countries it was different.
In order to make any system successful
the note issued must be Immediately, not
ultimately, convertible into coin.
This was the first consideration. After
this came, if the banks could be given the
power to expand the currency in times of
stringency, the two main objects of "a cur
rency system would be obtained. In his
system he had proposed per cent. de-
posit upon which bank notes should be
issued. To the extent of the deposit those
notes We're absolutely safe. The other 90
per cent. would be secured by safety
fund raised by proper taxation. Frankly
he did not consider such deposit necessary
But the exigcncics of the war made it
necessary.
The legislation of that period had Gre
ated currency which, in and of itself,
In his opinion, could not have maintained
itself had not the government endowed it
with legal tender quality. The exist
encc of these legal tenders today was the
greatest danger to the credit of the United
States at home and abroad The legal
tenders called for gold and must by law
be re-issued. The drain of gold could he
made continuous and the confidence of
the people must bc shaken both here and
abroad.