Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-11

WASHINGTON, d. c., December 1O.-The
principal interest at the Capitol to-day
centered in the room Of the Committee OF
WAYS and Means where Secretary Car
Isle and Comptroller Eckles appeared bv
invitation before the House Committee on
Banking and Currency TO explain and sd-
vocate the new banking plan prepared
by those two officials and endorsed by the
Presidents message.
The room was crowded with members OF
the house and intense interest was mani
gested. Secretary Carlise wus examined
and cross-exanined by the members Of the
committee He had the rough draft Of the
bill in his possessi on, but in his examina-
tion it was concluded TO revise it before
submitting it 20 the committee.
Mr.. Carlisle and Mr.. ECkles differed
somewhat as 20 the details Of the proposed
banking scheme, but agreed upon the prin-
oiples to govern it. Mr.. Carlisle will ap-
pear again on Wednesday. Tomorrow Mr..
Hepburn, MIR. Horace White and other
New York bankers win be heard.
WAsH1NGToN, December 10-Secretarv
Carlisle appeared before the House Com
mittee on Banking and Currency to-day to
present the features Of the new currency
plan proposed in his annual report and in
dorsed in the Presidents message. There
was much interest in the hearing. The
crowd in attendance made it necessary TO
use the large room Of the Committee Of
WAYS and Means. Beside the full mem
bership of the committee, SenOr Romero,
the Mexican minister, and many members
Of Congress were in attendance.
Mr.. Carlisle said he was ready to answer
questions from the committee, as well as
elaborate his own views. He took up each
section of his recent recommendation,
namely: "First, repeal all laws requiring
or authorizing the deposition Of United
States bonds as securities for circulation;
and. second, permit national banks 20 issue
notes 20 an amount not exceeding 20 per
cent Of their paid up and unimpaired capl-
tai. but require each bank before receiving
notes TO deposit a guarantee fund consisting
of United States legal tender notes, includ-
ing treasury notes Of 1890, 70 tue amount Of
thirty per cent upon the circulating notes
outstanding 20 be maintained al all times,
and whenever a bank retires its circuia-
tiop. i'm whole or in part, its guarantee
fund TO be returned 10 it in proportion 70
the amount Of notes retired
Mr. Carlisle said he was satisfied that
the present law recurring the deposit OF
bonds 20 secure circulation prevented the
ELASTICITY OF THE CURRENCY.
WThe provision outlined, " he said, ''gives
ample protection without the deposit OF
bonds as required by the present law
The practical value OF a reserve fund OF
currency was shown In 1913. There was
demand for money, aggregating 4OOOO,OOO.
The Treasury did its best TO meet the strln-
gencv. but by the time the notes were
ready TO distribute the demand had gone
bv and many packages Of notes were re-
turned unopened The Secretary in
vited criticism Of this particular
section and Chairman Springer asked
how the Secretary's plan differed
from the Baltimore plan. Mr. Carlisle
explained that the Baltimore plan proposed
"a deposit Of so per cent, under certain con-
ditions. while the treasury plan proposed a
deposit Of 80 per cent. When bank fails
the treasury plan contemplated an assess
ment Ou all national banks, they in turn
having d lien on the failed bank.
ReDre sentative Hall suggested that there
was a prevailing opinion that 10 was unsafe
IN place the entire question Of expanding
the currency in the hands of corporations
and banks. 1t will work automatically
aid Mr. Carlisle. "Banks will not expand
the currency unless the puolic need It,
Their interest viii be 70 expand and
contract as the common interests de-
maud. These interests will therefore
control az an times. The secre-
tarv urged { at this hexioility was much
more desirsble than rigid system by
which a hxad amount OF currency was
always outA BANDING. AT one time the
stringency las so great that the banks
drew out sl3l0uO,O 1000 under pressure, and II
IN had not been for tde Canadian banEs,
which sent currency into this country.
serious results might have eusued.
Mr. Johnson, Of Indiana, asked If the
Baltimore plar cid not contemplate gov
ernmept liability. Mr. Carlisle said the
ultimate liability was on the government
bv the BaluuAore plan and on the banks
bv his plan. 4 The banks were compelled
TO 81 Er THE SAFETY FUND
always iutacA As fast as depleted the
banks had 20 bring it up again. Ia pracJi-
c9l oDeratiCni the secretary said, the re-
serve sum wis always much lower than
the lav, contenplated A recent invesu-
cation shows Ahat it was down 70 S., ,000OOO
or Si OOJ 600. whereas 10 was presumably
much larger u he proposed plan contem-
mates that theiCurrent redemption, as well
well as tbe fiual redemption, shall be met
nv the hanks. 1 The daily redemptions now
run into the millions. This is net due 70
worn ont or IOrthless currency, but the
New York banks finds themselves over
loaded They kend national bank notes to-
tbe New y org sub-treasury and have them
redeemed in United States notes or other
Local ciasses OF currency, The treasury
then sends vvprd to the national banks %
rsdeern tht.sel notes that the suo-treasuries
have taken Id IL sometimes taxes tue na-
tiOnal 0anks fwo or three months 20 laAe
M their notch oIt results said the Sec
retarv. Gin kdeping very large sum sus-
pended in thelair We have paid it out
and will eveutkaUv get it back, but in the
meantime the large sum is held up" The
proposed plan would exactly reverse this /
system.
Mr. johnson Asked If the ultimate habil-
ity Of the govetnmsnt would not inspire
more conf8encSin the currency. I'm |
doubtedlyn sal the secretary, III the /
United States "a - i1qs oenino |
a national bank = absolute !
confidence. But 70 ]
posed plan Will inN
40 therefore ample 6
hr Walker put the hl
ailed bank. aud asked
Ersued under the Drd
First, said the Secretsl
per cent goes into the