The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1894-12-16
THE CARLISLE PLAN.
The Banking and Currency Committee VIII
Report to the House a Bill
Embodyng II.
ST, JOHNS STRONG PLEA FOR SILVER.


nearing on the question OF currency re- |
vision before the committee on banks |
and currency OF the house. President |
q. G.. Williams, OF the Chemical Ma |
tional bank. of New York. represented |
the prevailing view among bankers, |
while w. T.. st. John. OF the Mercantile |
bank, OF New York. represented the |
eastern view favorable to silver.
THE first problem In our clumsy and |
conBlomerate financial system is the |
disposition to be made OF our legal ten
der notes." said Williams. He urged
that these notes should be funded, $50
OOO,0 900 at a time until eliminated from
the financial system. Bonds at 3 per
cent should be received as security for
national bank notes on the basis OF the
par value. the government to have a
first lien on the assets OF the banks.
These notes should be redeemable at
New York city and when issued In sufii-
Client volume. being readily convert
ible, would furnish adequate elasticity
to the currency. The tax on the circu-
lation OF national banks should at once
be removed
AS to the Baltimore plan, Williams
said II would be safe In a large CITY.
but 1t might start MANY mushroom
banks merely with the view to issue
notes, and the failure OF such banks
would cause loss to the whole system
tenn. Conservative and well managed
institutions would absolutely refuse to
JOIN hands In meeting losses sure to
aIlse from these mushroom banks.
he.
ana giving new national bank issue
Williams said the next step was TO look
after the silver certificates and the
sherman notes. The latter were amply
protected by 100000 900 In the treasury
AS 10 silver certificates congress
should pass law redeeming them in
silver bullion at the market value at
the discretion of the secretary OF the
treasury, and Ii might be well similarly
TO redeem the Sherman notes. With
these changes the currency system
would become absolutely sound and the
banking system the most perfect ever
devised.
Williams was questioned as to the
cordition o. his own bank. He said Its
| capital was 100000 and II had a sur
plus OF S6,0O0,000 The undivided profits
were more than a million and the de-
posits reached s3O,00O,0OO. probably the
largest In the United States. II not in
the world. The dividends were $50 per
cent annually. The bank stock sold for
| "a, 800 share OF 800.
President st. John len. ruch spirit
to the hearing by the vigor of his state
| ment and its novelty in coming from an
eastern banker. Under Official dIcta-
tion," said he, "tutored by one OF the
| most aggressive of all the handful of
| goldites in the United States congress
| fiddles with bank notes while the burn
| ing issue Is our primary money coin.
'Identically tutored. our chief execu-
tive has required his secretary to aban-
| don the option conferred by law upon
| the United States and grant holders of
United States notes the right to exact
| gold always. silver never, as their re-
| deeming coin. Had the option to re-
| deem In silver dollars been exercised
| boldly. at time when only three mil
| lions Of silver dollars were owned by
the United States. with the ownership
of sl16.000,0 900 in gold, any possible
alarm would have been hushed to scorn.
To seize upon and exercise the option
now. or under the prospective condi-
tions OF the treasury, would be to court
all the perils of disaster"
Mr.. st. John stated that the same
policy led to the present proposition
OF substituting the bank promises OF
money in place of the primary and sec
ondary money gold and silver) which
they promise. He took up cases OF sill
yer recommendation. He characterized
the repeal Of the sherman act last year
and the closing OF the mints to silver
as 1.-THE worlds blind experiment In
money. II severed the last link that
coupled silver TO its crippled right OF
money in the western world. He de-
clared II was the duty OF congress TO
stop experimenting and go back to the
Hamilton-Jefferson coinage system, TO
restore bimetalllsm independent OF
other nations He took up the subject
of what he termed the "goldltes." He
cited the record OF France In indepen-
dent bImetallism. The conditions In
| the United States were much more pro-
pitlous for such action. Within ten
years there was promise OF exceeding
| the population Of Great Britain and
France, and our gold and silver could
circulate over n territory over seven
teen times the area of France.
| Mr. ST. John closed with review OF
the notable features OF the present
financial condition. The dollar is eff
ncicnt, but prices are ruinously low.
capital lacks investment. and manu-
| featuring Is restricted by low prices,
and lnbor starVes. "The enduring
fact" said he. III this aspect of money
is To be preserved, IL that the rich be
made richer and the poor poorer as the
one achievement OF our statute law
| AT the conclusion OF st. Johns state
mrnt the committee took n recess. ask
ing witness TO return for further ex-
animation.
II want to combat every statement Of
every banker who has appeared before
you. said 81. John, as an indication OF
the line OF questions he desired. Rep
.esentative Culbertson, OF Texas. ques-
toned 81. John as To the remedy ne
would propose for the present con,
| duious. The witness presented a bill
as a remedy. II provides for silver coin
age on the same basis as gold. To meet
| the money stringency, the bill pro-
| yidcs for coin certificates based on
bonds hypothecated by banks In such
quantities as the secretary Of the trcns-
ury may determine. Mr.. st. John said
the bill would put the country ON a
silver basis for time; thereafter both
metals would circulate As To Carlislc's
plan, MIR. st. John said II would fall
| nnt" The banks would not accept It,
| Chairman Springer Would the cur
reucy under Chrllsle's plan be safe2'
81 John-"There would be no cur
rency issued by them. They would not
accept H. Instead OF that. you would
have the worst panic ON record" lie
pointed out that the safety fund un-
dor the Carlisle plan, was IN be nc-
cumulated In small percentages, and
would not be realized for ten years.
In the meantime. for the next ten years,
there would be no safety fund behind
the proposed bank notes. Mr., st. John
said the bankers before the committee
had urged the retirement OF green
backs, but he regarded Il as prcpoa-
ferrous that sSi6OOO,OOO OF non-lntcrcst