The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1894-12-14
SECRETARY CARLISLE
Appears Before the House Committee and
Explains the Plan Of Ills New iianking

Law.
WASHINGTON, Dec. 1l.-Standing at
the foot Of the long table in the ways
and means committee room Of the
house Monday morning. Secretary Car
lisle explained In detail TO the banking
and currency committee the plan
recommended by him for new bank
ing law. All OF the seventeen mem
bera Of the committee except four
Messrs Black. OF Illinois; Brosius,
Of Pennsylvania; IIaughcn, Of Wis
consin. and Ellis, OF Kentucky, were
In their seats as early as 10 o'clock,
the hour at which the hearing had
been called. Mr.. Culherson, OF Texasr
who had been detained at home by
reason OF Illness IN his family, hurried
10 Washington 10 attend Mondays
meeting.
The hearing attracted a large num-
ber OF representatives In addition to
the members Of the committee.
Among those present were Mr.. VIII
son, OF West Virginia; Mr.. Hooker, OF
New York, and Mr.. Turner, Of Geor-
gia. Mr.. J. X. Cowen, Of baltimore, a
membcr-elect Of the next congress, and
senor Romero, the Mexican minister,
were also In attendance.
When the committee was called 10
order. Secretary Carlisle was asked by
Chairman Springer 10 explain what
would be the practical workings Of his
currency plan.
In answer Mr.. Carlisle said he had
come TO answer questions Of the COM
nilttee. aud to make statement Of his
plan. but not to indulge in a general
argument, rs that had been done al
ready In his annual report
Proceeding TO take up his suggestions
scriatim as they appeared in his re-
port, Mr. Carlisle read the first two,
as follows
Repeal All laws rclnlring or authorizing
thchcpo-ii Of United States bonds as security
/, for circulation
Permit national banks 10 issue notes TO an
amount not osrecding - per cent Of their
paid-up and unimpailcd capital but require
each bank before receiving notes TO deposit a
/ guarantee fund consisting Of United States
tA'fs"NAtH
/ lsso 10 the amount of - per cent upon the
circulating uoles applied for Thls percentage
Of deposits upon The circulating notes out
standing 10 be malntainod Ai all times. and
Whenever q bank retircs IT, circulation III
whole OF In part rs guarantee fund 10 bo re-
turned 10 Il In proportion 10 the amount Of
notes ruiired
In explanation sir Carlisle said II had come
70 hc almost generally believed that that pro-
vision Of law requiring the deposit Of United
states bonds a. security for circulation was .
failure. lie believed II prevented the elas-
tlelty of the currency Passing without fur
thcr comment 10 the second suggestion Mr..
Caflisle said be believed that this provision
was perfectly safe Ia guaranteeing surety "a
dopoaiior.- Tho Treasury fesePyc, be thought
should not exreed more than 0ne-half Of the
outstanding circulation oi national hanks.
Mr. Springer asked Mr. Carlisle 70 explain
the difference h,twcrn his plan for retiring
circulation aud that of the baltimore bankers
and thoo prfelary gave brief sketch Of each
The Baltimore piAn be said provided for 2
circulation upto hf,y pr cent Of the capita
stock of the banks without any deposit what
ever but subject 10 o tar, the fund raised from
which was 20 BE- used in relieving the funds o.
failed national banks n this does not bccom'
large enough the government j. 70 relieve III
I
The government plan was that separate
fund of - per cent Of the circulation shonl'
be nled for each bank and "a addition Their
should be- q safety fund raised Ike that Of III
baltimore plan. bul n this fund should no
prove large enough the treasury department
might asscss national banks pro rata on cifcu
lntion. The government through this means
could lose nothing In further explanation Nj
Carlisle said that the banks by this plan, ar
called upon TO lcep tho safety fund intact 4
the baltimore plan the government was re
auircd 10 DO this ~My plan said the secre
tnry. requires the national banking system 4
support Itself eniirrly. and relieves thegovcrn
ment of ali connection with the system, oxcep
10 furnish notes and 10 hold the safety fund
Mr Carlisle said his plan did away with III
present system ot redemption Of national ban
notes Al present national banks could sen
their mutliatcd notes 10 the treasury and re
ceive IN return now notes By the new pla
the government vas diverted cntircly from III
redemption of these national bank notes Tn
government was relieved Of all responsibility
In the matter.
In ansN,r 10 Mr. Johnson. OF Indiana, MI
Carlisle said that the idea OF the plan was ina
the stronger banks should carry the wcakel
, II a bank failed 20 badly that II could not pa
| ts notes the ultimate liability was placed. b
plan proposed by himself the ultimate habll
ity was placed on the hanks
: Nc johnson wanted - know II Nj. carlisl
| thought the banks would agree TO this and u
, secretary answered that the banks must spca
for themselves he was looking out for the II
tercst Of the government
: To Mr. johnson DEN ohiolMr. Carlisle sal
, that one great advantage Of hB plan was TIN
Il would furnish an elastic currency. The ei
tire n tinaal bank deposit would not be hlie
! u9 20 the limit OF the plan uu'css the husine'
OF the country required It. Under tho osei
i. system n national bank desired TO retire 4
circulation Il must send % the treasury lawf
! money Of the Unltod States of the rcquisli
I amount but Il was not allowed 70 Nlthdra
a this amount for circulation under six month
Under the new plan bank might retire Y
circulation and increase IL tomorrow.
r a