Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-15
The House Committee Will Report
Carlisle's Currency Measure.
ANSWERING ADMINISTRATIONS APPEAL
Bankers Present Divergent Views
at the Final Hearing Today.
CLOSE OF THE CONTROVERSY

The House banking and currency COM
mittee propose to report the Carlisle bill,
without amendment, on Monday, and begin
the consideration of 1t In the House Tues
day. At a conference of the democratic
members Of the committee held last night
this conclusion was Informally reached,
though there was no vote taken. This does
not signify that the democrats are unani-
nous In favoring 1t or that even ma
jority of them approve the measure en-
tirely. The spirit in which the report Is
made is that something must be done, and
that this might as well go as an expert
ment. With the heavy reduction OF the gold
reserve In the treasury, and an almost GER
tain prospect of another issue OF bonds
within sixty days. together with the earn
est appeal of the administration for as
sistance, and the assurance of Mr.. Car
Isle that this measure will give the re-
lief desired. the democrats OF the commit
tee and most OF those In the House are
disposed to make the experiment, putting
the responsibility on Mr.. Carlisle, though
they haven't much confidence in the re-
suit.
Want q Special Order.
In anticipation Of making the report on
Monday the committee have asked the
committee on rules to give them special
order fixing the mode Of procedure as to
amendments and the hour when vote
shall be taken. They have received as
surances from the members of the COM
mittee on rules that a suitable order will
be reported to the House. The desire Of
the committee IL that five or six days
should be given to the consideration of the
bill in the House. but this would carry 1t
over beyond the ordinary time for the holi-
day adjournment. and there Is very great
anxiety to have the matter disposed OF so
far as the House is concerned before the
Christmas turkey is served. As far as the
members of the committee are concerned
the anti-state bank tax democrats have
abandoned the idea Of striking out the
state bank tax feature. They have con-
cluded that such an amendment would
drive most of the southern men away from
the support of the measure, while not win
ming the support of the republicans, and
in their anxiety to avoid the responsibility
for failure of action they propose to try
and get the bill through as II is. If they
succeed they argue that Ii will relieve the
House from responsibility, and that the
Senate, which will surely never pass the
bill. may be compelled to endure the pub
lie reproaches for failure to relieve the
situation.
Two Amendments Likely.
It is not altogether certain, however,
that the bill can go through the House
without amendment. The greatest danger
to 1t comes from two propositions to
amend which the republicans will make.
The first of these will be to strike out the
state bank feature. This may not carry.
for the reason that democrats who favor
1t may decide for party reasons to oppose
any amendment to the bill which would
so certainly defeat 1t. The other amend
ment will be one providing for the i'm
mediate issue of enough bonds to redeem
all the outstanding greenbacks and notes
of 30, which now may be used to draw
gold from the treasury. There Is posst-
bility that this amendment may carry.
for the reason that the administration
is in favor of authority being given to
issue bonds for this purpose, and a con-
siderable number of democrats in the
House will vote for 1T. This amendment
will provide for the issue of five or six
hundred million dollars of bonds at low
interest, and, II adopted, will probably
defeat the whole measure by driving from
its support the democratic opponents of
the bond issue. who are a large majority
of that party in Congress.
Incidents of the Closing Hearing.
Great interest was manifested today in
the closing hearing before the committee on
banking and currency. Secretary Carlisle
was present at the opening of the session
widely divergent views, President G. G.
Williams Of the Chemical National Bank of
New York representing the prevailing view
among bankers, while President w. P. ST.
John of the Mercantile Bank of New York
represented the eastern view favorable to
silver. The presence of Mr.. st. John had
drawn Senator Teller to the hearing, anx-
ious to hear the views of an eastern silver
man on currency revision.
Chairman Springer read letter from
President Post of the York National Bank
Of York, Neb., indorsing the Carlisle plan.
Representative johnson Und) asked why
this letter was chosen to be read when
many letters giving different views were re-
ceived. 1t was explained that this was the
only letter from national bank indorsing
the Carlisle plan. There was some sparring
over the letter, and Mr.. Springer withdrew
it.
There was added interest in the state
ment Of Mr.. Williams, who opened the
hearing, from the fact that the bank of
which he is president has the largest de-
posits In the United States, If not in the
world.
The Most Important Problem.
'"rhe situation is one requiring firmness
and common sense" said he. THE first
problem in our clumsy and conglomerated
financial system is the disposition to be
made of our legal tender notes.
He urged that these notes should be
funded, $50, ,OOO, 900 at time, until they were
eliminated from our fiscal system. Bonds
at per cent should be received as security
of national bank notes on a basis of par
for the bonds, the government to have a
first lien on the assets Of the bank. These
notes should be redeemable in New York
city, and when issued in sufficient volume,
and being readily convertible, would fur
nish adequate elasticity to the currency.
The tax on the circulation of national
banks should at once be removed.
As to the Baltimore plan, Mr.. Williams
said It would be safe in large cities, but
1t might start many mushroom banks
merely with a view to Issuing notes, and
the failure of such banks would cause loss
to the whole system. Conservative and
we'll managed institutions would absolutely
refuse to join hands in meeting the losses
sure to arise from these mushroom banks.
Suggesting the Way to Sound Money.
After funding the legal tender notes and
giving q new natioral bank issue, Mr. Will
nams said the next step was to look after
the silver certificates and Sherman notes
The latter were amply protected by the
one hundred millions in the treasury. AS to
the silver certificates. Congress should pass
a law redeeming them in silver bullion at
its market value at the disore ton of the
ecIetery of the Treasury, and II might be
we'll to similarly redeem the Sherman