The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1894-12-18
THE CURRENCY PLANS.
Secretary Carlisles Plan and the
Baltimore Plan Contested.
TAKE YOUR CHOICE.
THE CARLISLE PLAN.

cred to be printed and referred to the
Committee on Banking aud Currency.
In the first section all laws provid-
ing for the deposit Of bonds to secure
circulation are repealed. The second
section provides for the circulation OF
notes to the extent ofthe raid-up cap
ltal on deposit of legal tender equal to
30 per cent. of the notes deposited
These notes shall be of $40 and multi
Piles of ten, and shall be uniform in
design.
The fourth section levies duty of
| IL per cent. for each half year on the
bank notes in circulation, and pro-
vides for the mode of redemption and
and retirement of banks circulation.
Section 5 creates the safety fund for
the prompt redemption of circulating
notes of failed banks. Each bank
shall pay to the United States Treas
urer IN the months of January and
July in each year tax of / per cent.
for each half year OH the average
amount of its circulation notes out
standing, until said fund amounts to D
per cent. of the total amount OF such
notes outstanding, and thereafter said
tax shall cease. A bank retiring or
reducing its circulation shall not be
entitled to withdraw any part of this
fund. The mode of procedure in case
of bank failure is outlined.
Section 6 allows the Secretary ofthe
Treasury to invest money belonging
TO the safety fund in United States
bonds.
Section provides that on January
| l, 1895, national banks having United
States bonds on deposit may with
draw them and substitute the guaran-
tee fund.
Section s repeats previous acts con-
flicting with this measure.
Section 9provides that the Secre-
tary of the Treasury may, in his dis
erection, redeem and retire United
States legal tender notes; that no
United States or Treasury notes au-
thorized by the act of July s, 1890,
of denomination of less than $40,
shall be issued.
Section 10 states that bank duly
organized under the laws of any State,
which transacts no other than bank
} ing business, shall be exempt from
, taxation under the laws of the United
States under certain conditions.
Section IL provides that State banks
} shall not issue notes similar in design
to United States notes, nor certificates
of national banks.
Secretary Carlisle read the bill to
the committee, commenting on it as
he proceeded. When he had conclud-
ed reading the bill, Mr.. Carlisle ex-
planned it in detail. He pointed out
, the various sections of the present law
proposed to be repealed. Concerning
, the conditions imposed on State
banks by his bill, he said certain feat.
ures had been added to meet criticisms
made of the plan as outlined in the
Z annual report
Mr.. Brosids (Rep), of Pennsylva.
} MIA, asked whether il was not desir.
able for the Government to assume the
| risk of redeeming notes rather than
leave it to the banks,
Mi. Carlisle answered in the mega.
tive. He said he did not believe in
Government responsibility further
, than providing the most ample safe.
guards. The Secretary presented ia,
bes showing the profits of national
, banks under the proposed plan, as
compared with the profits under the
: precent law. 1t showed the addi
tional profits and inducements would
incline national banks to take out cir.
, cnlation. In the course of the gen.
eral discussion Mr.. Carlisle said he
did not think any immediate retire.
, ment of United States Treasury notes
was practicable. The Secretary spoke
of Controller Eckles' currency plan
Without wishing to criticse it, be
thought its fatal defect was in requir.
ing national banks to take out two
different kinda of circulating notes
Mr.. Hall, of Missouri, asked the Sec.
: rotary as to Mr.. Whites statement
} that the Treasury plan lacked elastic
ity.
Mr.. Carlisle said there was no diff
} terence between the plans as to the
amount OF circulation which could be
J taken out