The morning call., 1894-12-22
SPRINGER DRAWS 1T UP.
After Caucus and a Long
Conference.
TWO IMPORTANT CHANGES INIT.
The Bankers Objected to Having to
Make Good the Notes of Failed
Banks.

WASHINGTON, Dec. 21.-The Carlisle
currency bill, now before the House OF
Representatives. will be Withdrawn and a
substitute presented. This decision was
reached after caucus Of the Democratic
members OF the Banking and Currency
Committee, quietly held last night. fol-
lowed by conference between Secretary
Carlisle and Chairman Springer to-day.
The substitute has already been drawn,
and will be offered by Springer before the
holiday recess. as the desire of all con-
cerned is to get it before the country prior
to adjournment. It differs very materially
from the original Carlisle bill.
Two very important features appear for
the first time in the substitute. The origi-
nal Carlisle bill contemplated that all
national banks must reorganiZe under the
new plan. This would have required
them to surrender the Government bonds
which now constitute the basis of their
circulation. The substitute does away
with this imperative change. If the ma
tonal banks wish to continue to hold their
United States bonds and issue a circula-
tion thereon they may do 50. 1t Is felt
they will soon discover the advantage of
unfairly.
The other important feature in the SUBJ
stitute is that it does away with the I'M
known liability OF the banks guarau of
the notes of all the other banks. The
original bill contemplated that If a
national bank failed, is notes would be
paid out of its assets and the general
safety fund" made up by all the banks.
But if the assets and safety fund were in
sufficient to pay the notes of the failed
bank then the Comptroller of the Currency
WAS to make pro rata assessment on all
he banks of the country. The banks said
nis prospective assessment shouldered
them with an unknown risk. In effect il
made them supply insurance on all the
notes of banks in which they had no con-
Germ. In view of these criticisms the su b.
stitute will do away with the assessment
plan. The safety fund" will be the limit
of the joint liability of all the banks for
the failure of individual banks. They will,
however. be compelled to keep up this
safety fund by more rigid provision than
is proposed in tile original bill.
The caucus of the Banking and Cur
rency Committee Democrats was held at
the committee-room last night, the follow
ing members being present: Springer,
Cox. Culberson. Sperry, Warner, Cobb of
Alabama and Ellis. The absentees were
Cobb of Missouri, Hall of Missouri and
Johnson of Ohio. 1t was reported that
Secretary lCarlisle was present, but this
proves incorrect.
The discussion took a wide range and
the sentiment was generally that the bill
would have 10 be materially charged in
order to meet objections ana command q
support which would secure its passage.
The eeded amendments were formulated
and when the caucus adj urned it was not
contemplai ed that the Carlisle bill should
be more than amended. 1t was arranged
that Springer should see Secretary Carlisle
to-day aud submit the contemplated
changes.
When Secretary Carlisle and Springer
met it was decided that the better plan
would be to frame a new measure in the
nature of substitute instead of mutilat-
ing the original bill with many amend
mentS which went TO its vital principles.
Accordingly the substitute was agreed to
in full, and as soon as it can be copied and
put In proper bill form it will be presented
TO the House and thenceforth be the bill
on which currency DEBATE Is to proceed.