The representative., 1894-12-26
CAUSTIC CRITICISM
OF Secretary Carlisle's Banking an
Currency Rill.

Currency Bill.
WASHINGTON, d. C. Dec. 1.-THE mi
nority members of the banking and cur
| rency committee severely critcise the Car
Isle bill They say:
The whole action Of the party majority of
the committee was most extraordinary, and
not approved by its voting majority. Sec
rotary Carlisle read part of the bill on
the first day of his address to the commit
tee. saying he had not finished debating it,
and would bring it in when he finished mis-
address to the committee the following
day, which he did. 1t was not again read
or in any manner considered in committee,
and an opportunity to consider or amend it
was refused to all members, Democrats and
Republicans alike.
On saturday at p. M, immedia tely upon
the close of the examination of Mr.. ST.
John, of New York, a motion was made to
close the hearing and go into executive ses-
sion. Upon the attempt of a member of the
minority to make a motion to take up the
bill for consideration they were informed
by the chairman, Mr.. Springer, that the
Democratic majority of the party had de-
cided not to submit the bill to the commit
tee for any motion whatever but to report
it to the house on Monday, and that each
member could offer what amendments he
chose in the house.
1t is the opinion OF number of the
most clear-headed and eminent flnanciers
in the country that if the Carlisle bill
was enacted INTO q law WITHIN 70 days that
it would precipitate a panic far more Sc
we're than that of 1898, as it would compel
the forced sale upon the market of nearly
two hundred million United States bonds
within six months
Section 1 repeals "all acts and parts
of acts which require or authorize the
deposit of United States bonds to secure
circulating notes." etc. instead of 80
much of all acts and parts Of acts etc.
How many thousands may be seriously
| injured by such
| NEEDLESS WHOLESALE REPEAL
of the statutes or whether the supreme
| court, after years of litigation, might by
| construction re-enact some parts of such
| statutes which Secretary Carlisle had re-
| pealed, no one can tell.
| Section five provides that "each aSsOcia-
ton hereafter organized and each associa-
| ton applying for additionaL circulation
shall pay it's pro rata share into the said
| fund before receiving notes. without de-
| fining how the total fund each share
or shares shall be obtained.
| In the next paragraph it is provided
that when a national banking associa-
ton becomes insolvent it's guaranty fund
| held on deposit shall be transferred to the
! safety fund herein provided for and ap-
piled to the redemption of it's outstanding
| notes." That is to say it is merged in
! the safety fund and again there is no pro-
! vision in the bill for the use of the safety
fund except by implication in the lines
quoted.
The same paragraph provides that s'In case
the said last mentioned fund safety fund.- SHOULD
| at any time be impaired by the redemption ol
| the notes of failed banks and the Immediately
aSa,iane az assets of said banks are not sueien
!, restored by pro rata ASSIGNMENTS upon all the
| 6tner associations and also 'assoc....tions SC
i ASSESSED shall have flrst lien upon the asst.
| Of each failed bank for the amount properly
| ehargeable to such bank on account of the re-
| demption of its circulation" and these are al
the provisions in the bill Of how any is te
| proceed, and without defining who shall pro
| of the Carlisle bill. when bank fails. il:
guaranty fund is to be paid into the safety fund
paid out of the safety fund. Then all of The
national banks in the country arc to pe assessed
| to make up the safety fund, and then all the
national banks of the country to put in the
claims to the receivers of the failed bank fo
payment of the notes of the failed bank. Prob
ably Secretary Carlisle intended to provide
! THE GUARANTY FUND
| of the failed bank should be first expended IL
taking up the currency notes OF the failed banl
and that whatever additional sum was necessar,
| should be taken out of the safety fund 10 com
pletc their redemption and the safety fund shoult
| be replenshed out of the assets of the bank
| and if there deficiency in the assets of tn.
failed bank. which was. made up out of tn,
assessed to make good the safety fund.-
Whatever legislation is had with reference te
| effect upon national Banks should be pe,m;ss:---
and net n,ands..:S as to national ranks While
their w".esent charters contip<a To provide as ir
! section T. that every national banking associa
ticn heretofore organized and having bonds or
deposit to secure circulation shall, on or before
the first day of July 1885, Withdraw such bonds
and deposit with the treasurer of the United
States guaranty fund consisting of United
States legal tender notes, including treasury
notes cannot be justified upon any principle Of
safe legislation 1t could not fail to produce
panic and the recklessness Of such legslat oY
would starte not only financiers in this ccrantry
but in the world.
| OrOyisiOus Of eyempfi0ns nc IN S1exo t~.o,--