Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-18
THE MINORITY REPORT
Severe Criticism of Various Provisions Of
the Carlisle Bill
A Belief That the Measure Would Ag-
Ernvate Rather Than Relieve the
Financial situation.

The republican minority of the banking
and currency committee state In their re-
port against the Carlisle bill that 1t was
not considered by the committee at all.
The report. continuing, says:
TT is the opinion of a number of the
most cIear-headed and eminent financiers
I'm the country that IL the Carlisle bill
was enacted into law within twenty days
II would precipitate a panic far more
severe than that of 1873, as it would COM
pei the forced sale upon the market of
nearly two hundred million of United
States bonds within six months.
The haste to report this bill is all the
more inexpIicable when it is remembered
that Secretary Carlisle testified, that the
bill. which he had drafted himself, for the
relief OF the treasury would not in any
event relieve 1t materially for five years,
and might not for twenty years."
The Measure Loosely Drawn.
Examples Of looseness of construction
and the inadequacy of provisions of the
bill are given. The report points out that
particularly in the provisions for the
safety fund the measure Is loosely drawn.
1t says:
Whatever legislation is had with refer
ence TO the finances OF the country or
banking, in it's effect upon national banks,
should be permissive and not mandatory
as to national banks, while their present
charters continue. TO provide as in Sec
ton Z, THAT every national banking asso-
citation heretofore organized and having
bonds on deposit to secure circulation shall,
on or before the LIST day of July, eighteen
hundred and ninety-five. withdraw such
bonds and deposit with the treasurer of
the United states a guaranty fund consist
ing OF United states legal tender notes,
including treasury notes. cannot be justi-
fed upon any priI ciple of safe legislation.
could produce n
the recklessness OF such legislation would
not only startle the financiers in this coun-
try, but or the world.
The provisions of exemptions as to
state banks, Notwithstanding the many re-
strictions imposed upon them, would drive
every existing national bank that desires
to take out circulating notes into the state
bank system, If the bill were enacted. The
taxation of national bank notes is IL per
cent per annum in section and 1-2 per cent
per annum under section 3. making total
OF l per cent per annum, which would be
taxation of five million per annum upon
the banks under the national system, which
there is no reason to believe from any OK
perience OF the past would be imposed up
on them under any state system. Further
more the states would be far more liberal
than the United States will ever be, or
ought to be, as regards bonds or any other
security or redemption fund. for they may
require the deposit of no bonds whatever.
We cannot believe that it was the inten-
ton of the trainers of the Carlisle bill to
make the conditions under which national
tanks should issue currency any more
onerous than those imposed or likely to be
imposed upon state banks, or that it was
the intention of Secretary Carlisle or of
those who now enthusiastically support the
Carlisle bill or will vote for 1t in Congress
to force the national banks to operate Un-
der state charters, and yet we feel assured
that ouch would be the inevitable effect of
the bill. We particularly desire to call the
attention of the House TO the fact that of
the witnesses not more than one or two
h. ntlI hAfAr h. to- Fnfl A1
to seriously object to the Carlisle bill
VIII Aggravate the Financial Situa-
ton.
THE passage of the Carlisle BILL the
port says, may meet some political ext
gency of which we do not know, but we DO
know that its passage will aggravate rath-
er than relieve the perplexities of the finan-
cial situation. and especially that of the
United States treasury. The United States
legal tender notes withdrawn from circula-
ton, did all existing national banks take
out all the circulation permitted under the
BILL would only be Sl51 100000. still leaving
$3J00O0.UO0 to vex the treasury. This would
not afford airy substantial relief to the
constant drain of gold from the treasury
1t would make still more conspicuous and
thus more urgent the demand for gold up
on the treasury, and the notes ISSUED under
the bill would make confusion worse con-
founded in the currency by adding from
one to forty-five more kinds of money to
those already existing. Twice within a
short time has the House declared it's I'M
alterabe opposition to allowing state banks
to issue currency notes, once on June o.
1892, by a vote of 81 for to lis against II,
and again under the leadership against
state banks of the gallant and versatile
gentleman from Illinois, the Honorable
VIM. M. Springer, on June 9. 1894, by vote
to repeal the 10 per cent tax of 1O2 for to
172 against. Therefore, we protest against
again consuming the time of the House in
a prohtless discussion of that Objectionable
sec ton of the Carlisle bill.
FINALLY, we are of the opinion that It is
not safe for the House to enter upon the
line of legislation proposed until some bill
is brought before it that has received far
more attention than the Carlisle bill, and
we recommend that 1t be indefinitely post
poled."