The sun., 1894-12-28
THE NEW CURRENCY BILL.
CHAIRMAN SPRINGER EIPDhINS
ITS PROVISIONS.
ExistinE Banks Not Required 60 Cous -
Under the New system Yates. They De-
sire 10 Provisions tor the SAFETY
H. IL ~ Anaa y.

Existing Bnaks Not Required 60 Cor-s -
Ihder the New EYsteu, UnIess They De-
sire 90 - Provisions Tor the SAFETY
snd Redemption or the Notes fssuees
WASHINGTON, Dec. e7.-Mr. Springer, the
Chairman OF the House Committee on Banking
and Currency. said to-day that he did not believe
that the people Of the country generally UNDER
stand the notifications in the present banking
system which will be accomplished by the
passage OF the Carlisle bill as now proposed TO be
amended
"In the first place" ho said. "the Carlisle bill
proposes radical change in the manner OF se-
curing bank-note circulation. The present law
requires deposit Of United States bonds, and
permits the issue of notes to the amount Of 90
per cent. OF the par value OF the bonds. The
rapid payment Of the public debt, the limited
number of such bonds now outstanding, and the
further fact that many Of them are held In
trust capacities In this country and az perma-
nent investments by persons residing abroad,
have rendered this kind OF security impractics-
BILE. aud some other must hc devised or the na-
tional-hank circulation will soon I've retired.
The Carlisle bill proposes for security Of the
circulating notes of national banks, In
stead of United States bonds. n guarantee
fund consisting Of lcgAl-tender notes OF
currency certificates to the amount Of thirty
per ccntum Of the circulation applied r; also
htHltlg luU'l w wv THlHtu ny u laN VI one-uhth
OF one per cent. per anuum upon the cir .ulating
notes, until it reaches nye per centum Of the
whole circulation, and as n fur ther security
first lien upon all the assets Of the bank and
upon the amount which may be rea lied by the
double liability feature of the national banking
law.
7" It must be observed here that the guarantees
and the personal liabilities Of the stockholders
can only go to the payment Of the circulating
notes Of the bank which issues them, but the
five per cent. guarantee fund, raised by n tar
upon all the circulation of the country, Is com.
mon fund ont of which the notes Of any failed
sets. and md personal liabilities Of the stocfhoidsrs
are not sufficient. Thus, on circulation cf
iation, the safety nnd would amount to Sio.-
100000, and this whole fund could be drawn
upon To pay the notes of any bank that
failed. This security, together with the 9th.
ers mentioned, Is deemed by the safest
as amply sufficient s to secure the " bill holder;
under any circumstances, even in time OF
panies and universal financial disaster. Even
during one commercial crisis would not impair
the value Of the circulating notes in the least
taxation could rest until the notes were paid,
would amount to at least ten times more than
the circulating notes now outstanding"
Does the substitute which you propose TO
offer permit the banks to come under the new
law Of their own yoliton. or will they be re-
quircd at any time in the future TO comply with
. As the bill was originally drawn by Mr. Car
up their bonds and comply with the new law
between this time and the first day ofJuly next.
The national bankers objected to this provision
and insisted that their charter rights would be
violated While do not concede this point, y e
well to avoid any objection of that Kind which
may be made, and the substitute pro-
yides that the present banks may como
Into the new system or not, Just as they
may desire. There is nothing compulsory
whatever. IL they stay under the present eys-
tenn they cannot increase their circulation, but
they will remain under the law precisely as u
now stands. IL they desire TO take out addi-
tiUnal circulation or any circulation under tho
new law. they must retire their existing circu-
the provisions OF the new law. This will enable
them to act at their convenience, and will pre-
vent any changes of existing conditions except
such rs are voluntarily entered upon"