Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1894-12-15
EXPLAINS
Plans for Reconstruction OF the
Currency System.
NE is OPEN FOR CRITICISM
Thinks Thmf Hfs scheme Wtii Provide
vssums Of Money Esnas to
Oar Nsexa.

washington. Dec, io.-secretary Car
Isle appeared before the house commit
tee on banking and currency today 20
present In detail the features of the new
currency plan proposed in his annual
report and Endorsed In the presidents
message. Besides the full membership
OF the committee. Senior Romero, Mext- /
can minister. and many members OF con-
gress we're present. Mr. Carlisle took up |
First. the repeal Of the law requiring or
authorizing deposit OF United States
bonds an securities for circulation. and.
second. 10 permit national banks to
issue notes TO an amount not exceeding
T5 per cent, OF their paid up and unim-
paired capital but 10 require bank. be-
| fore receiving the notes. TO deposit q
guarantee fund, consisting of United
States legal tender notes of 1880, TO the
amount OF 30 per cent. upon the circu-
iating notes applied for. this percen-
tage or deposits upon circulating notes
outstanding TO be maintained Mt all
times, and whenever n bank retires its
circulation, in whole or In part, Its
guarantee fund to be returned 10 II In
proportion to the amount OF notes rc-
tired.
Carlisle said he was satisfied that
the present law requiring the present
deposit or bonds to secure circulation,
prevented elasticity OF currency. THE
provision outlined" said Carlisle, gives
ample protection without the deposit OF
bonds, as required by the present law.
The practical value OF the reserve fund
OF currency was shown In 1898. There
was a demand for new money aggreEat-
Ing s40,00o.000. The treasury did Its
best 10 meet the stringency. but by the
time the notes were ready to distribute
the demand had gone by. and many Of
| | the packages of notes were returned
unpaid"
J The secretary invited criticisms on
! | this particular section. Chairman
Springer asked how the secretary's plan
differed from the Baltimore plan. Car
Isle explained the technical difference
The Baltimore plan proposed deposit
of so per cent under certain conditions
] | while the treasury plan proposed a de-
poslt Of 30 per cent. When the bank
| fails the treasury plan contempiates
/ an assessment on all national banks
/ they in turn having q lien on the failed
> bank. Representative Hall or missouri
: suggested that there was prevailing
n lopinion that IL was unsafe to place tn
q currency In the hands of corporation
: and banks cit will work automata
j. catIy," said Carlisle. ''The banks WI
}. not expand the currency unless the pub
lie needs II. Their interests VIII be =
r expand and contract az common inter
a ests demand IT," The secretary state
|. | that this fiexIbiiity was much more dc
Ii slrabie than the rigid system by whie
ii n certain amount of currency was OUT
" standing, Al enc time the stringenc
n was so great that banks drew out siS
II oeo 900 under pressure, and II II had nc
Ia been for Canadian banks, who ser
4 currency into this country. serious y
4 suits might have ensued.
n Comptroller of the Currency Eckie
4 appeared before the committee an
a. made an elaborate statement. He col
In tended that the national banking Law
40 were not to be lightly dealt with, an
al should not be altered unless IL was al
Of soiutely known that the change woul
q be beneficial.