The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-12-08
cARLisLE's CURRENCY IDEA,
washingten.

Is 10 ca.sisg . Let ss Csans.s Ia
washiagtss.
WAsHNoroN, Dec. 7.-Caslisls's plan Of
currency reform 10 naturally attracting
gree, attention In and out sf sousresA
While Carlisle's plan 10 favorahly com
mented upon by many prominent msm.
bers Of both houses, .hers are others who
argue that the plan proposed by Comp
troller Eckels IN his annual report has
superior merit, and whom thoroughly un-
dsrstood will meet with general appcosal.
A prominent senator who 10 recognised
a. an authority on financial matters, o..
planned to representative Of the assocla.
ted press his views. He SAID: AS Q
plan for relieving the general eovernnenS
from the burden and charge for redeenine
United States notes, II would, according
to tho secretary's estimate, result In
securing temporary deposit Of e2a.000.-
600 Of those notes with the government u
the national and state banks nov In OF.
istence should take out . circulation to
the full amount proposed.
"Let us soc how this result could be or
rived at. A, present tho capital Of all tho
national banks In existence 10 about S6e1..
0oO,OOo. II to this 10 added S33.. .O0, 900 -
the capital OF tho state banks availing
themselves Of the privilege, the total capi.
tai OF Si,00.0O,0oo would b had as .
basis upon which to issue currency. As
sumng that ell tho banks possessing this
capital issue currency up to the full limit
OF IS per cent, we will have an issue of
bank currency to tho amount Of $3.50. .000,-
OOO. Against this legal tenders to the
amount Of 30 per cent. OF circulation must
be deposl,ed, OF $s2j,O)).0Ol. Add ths
bank notes issued. e750. 900 900. less the ma
tional hank currency retired, $l73,-
OOJ,OOO; the legal tenders deposited
aul Withdrawn from circulation
a--5.OOO.OCO; total, s397. 100000. The net
increase in circulation. Ss53, ,00JOO). TAX.
ing q bank with 10000 capital, the comp
troiler's plan appears to require that the
hank deposit with tue treasury $4,000 In
United States bonds OF legal tenders, for
cancellation. in exchange for which IL will
Immediately receive SIS, ,DO in bang notes
for current redemption of bank notes Of
this class. upon the failure or liquidation
OF the bank.
"rhis feature, therefore, is neither an
expansion nor q contraction Of the cur.
rency; it is simply an exchange Of one
kind OF currency for another, but for the
purpose and with the effect OF entirely re.
lieving the government OF the burden and
cost OF the current redemption during
the ex stence of tho bank receiving and
issuiny the same. Under this branch Of
the comp,roller's plan, with the present
| capital If the national bauks, Wis: S56S,.
. o.0OO. Si3i,oJ0.OOo of legal tenders would
immediately be retired and withdrawn
from the possibility of being
redeemed in gold BY the gen.
eral government, while banking
capital OF 81, ,LuO. 10000 would serve as n
basis FOR retiring an entire ISSUE both of
the United States notes aud the sherman
act; notes amountln, together to about
| $500 .lu. While under the secretary's
plln a capital OF 81 i,opo,olo would affect o
withdrawal. according TO his own est..
mate. OF oaly S225.OJ0. Should not tho
bank notes issued against the legal
ten .ers be made available Tor the lawful
money reserve against the deposits which
are now legal tenders, this would operate
TO withhold them from redemption BY the
bauks.'