The state herald., 1894-12-14
MIR. CARLISLE'S PLAN.
SUBMITTED TO A COMMITTEES.
Tho Secretary aud Comptroller i1ckcls
Explain Their Ideas on Currency Rc-
form to Congressmen.

Washington, Dec. l0.-1,he principal
interest at the capitol to-day centered
In the room of the Committee OF Ways
and Means. where Secretary Carlisle
ahd Comptroller Eckels appeared bs
invitation before the House Committee
on Banking and Currency to explain
and advocate the new banking plan
prepared by those two officials and In
dorsed by the presidents message. The
room was crowded with members of
the house and intense interest was
manifested. Secretary Carlisle was OK
amined and cross-eXamincd by the
members of tho committee. He had the
rough draft of bill in his possession
but after his examination II was con-
cluded to revise 1t before submitting
1t to the committee. Mr.. Carlisle and
Mr. Eckels differed somewhat as to
tho details of the proposed banking
scheme, but agreed upon the principles
to govern 1t. Carlisle will appear again
on Wednesday.
Tomorrow Mr.. Hepburn, Horace
White and other New York bankers
will be heard.
MFR. Carlisle adopted an easy. con-
vcrsational style of address. He said
he was ready To answer questions from
the committee as well as elaborate hls
own views.
I, First-Ilepeal all laws requiring Or
authorizing the deposit of United
States bonds as securities for circula-
ton. and second, permit national banks
to issue notes TO an amount not exceed
ing "a per cent. OF their paid-up and UNI
impaired capital. hut require each
bank before receiving notes, to de-
post guarantee fund consisting of
United States legal tender notes. In.
Guiding treasury notes of 1890, TO the
amount of 30 per cent. upon the circr-
lating notes applied for. This percent
age of deposits upon the circulai!n.
notes outstanding to be maintained
Mt all times. and whenever bank rc-
tires Its circulation, in whole or in
part Its guarantac furl TO be returned
10 ii in pro- on to the amount Of
notes retired.
Mr.. Carlisle said he was satisfied that
the present law requiring the present
deposit of bonds 10 secure circulation
prevented the elasticity of the cur
rcncy.
"Thc provision outlined" said Mr..
Carlisle, gives ample protection with
out the deposit of bonds ms required by
the present law"
Mr.. Carlisle said the practical value
of reserve fund of currency was
shown in 1893. There WAS n dcmsn'l
FOR money, aggrcgating Si0,00O,0C0.
The treasury did It's test 10 meet the
stringcncy. but by the time the nOt.,-,
We're ready to distribute the demand
had gone by and many of the packages
of notes were returned unopened.
Representative Hall of Missouri sug-
gesied that there was n prevailing Opin-
! ion that 1t was unsafe 10 place the en-
| tire question of the expanding of the
| currency in the hands OF corporations
and banks.
ut will work automatically" said
| Mr.. Carlisle, blanks will not expand
the currency unless the public needs
| It. Their interest will b. TO expand
and contract as the common interests
demand IL. These interests VIII, there
fore control at all times"
| The secretary stated that this ilcSi-
blity was much more desirable than
a rigid system. by which certain
AMOUNT of currency was outstanding. At
one time the stringcncy was 81 gre At
that the banks drew out Si3.UoO.O0O
under pressure. and II Il had not been
for the Canadian banks who sent cur
rcncy into this country serious results
might have ensured.
| Concerning the state bank feature of
the plan, Secretary Carlisle said;
| utar.,Iv "a t1ln lN txr1Nt.4lt
state banks could act II they saw ~.
But the government has No direct con.
Germ with state Institutions the plan
| simply gives them the privilege OF act
| ing under certain conditions II they
sec iit. The secretary thea took M the
| proposition that no national bank note
be Of less denomination than $40. II
would encourage the circulation OF sil.
yer certificates OF small denominations,
| These certificates were now crowded
Into the treasury.
Mr.. Carlisle said he did not believe
In the authority OF the federal r0vcrb-
ment to assert such authority over
state institutions. Ills Idea was that
tho federal authority did no, go he
You'd Imposing tax Ms means Of
completing the state Institution 10 oh.
serve certain conditions
State bank notes would certainly hr
far dlffcrcn, from United states note,
In appearance. They would have tho
name OF the state bank In different
color.
"My position would lead TO the hgl.
cal conclusion that all tax ON state
banks should be repealed said the
secretary. "'fhat may not h. practical
at present. but thcre should be the
least exercise Of authority possible. We
do rot Insist that they shall do so and
SO. but we say II you do not do 1t we
~ lax you. The tax Will be- payable