The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1894-12-15
Plans for Reconstruction of the
Currency System.
HE is OPEN FOR CRITICISM
Thinks That His Scheme WIN Provide
Volume of Money Equal to
Our Needs.

| Washington, Dec. 10.-Secretary Car
Isle appeared before the house commit
tee on banking and currency today to
present in detail the features of the new
currency plan proposed in his annual
report and Endorsed in the presidents
message. Besides the full membership
of the committee, Senior Romero, Next
can minister, and many members of con-
gress, were present. Mr.. Carlisle lookup
each section of his recommendations
First, the repeal of the law requiring or
authorizing deposit of United States
bonds as securities for circulation, and.
second, to permit national banks to
issue notes to an amount not exceeding
IS per cent, of their paid up and unin1-
paired capital, but to require a bank. be-
fore receiving the notes, to deposit a
guarantee fund, consisting of United
states legal tender notes of 1890 to the
amount of 80 per cent. upon the circu-
iating notes applied for, this percen-
tage of deposits upon circulating notes
outstanding to be maintained at all
times, and whenever a bank retires it's
circulation in whole or in part, it's
guarantee fund to be returned to it in
proportion to the amount of notes re-
tired.
Carlisle said he was satisfied that
the present law requiring the present
deposit of bonds to secure circulation.
prevented elasticity of currency. THE
provision outlined" said Carlisle, "gfyes
ample protection without the deposit of
bonds, as required by the present law.
The practical value of the reserve. fund
of currency was shown IN 1898. There
was demand for new money aggregat-
ing S4O0OO,O00. The treasury did it's
best to meet the stringency, but by the
time the notes were ready to distribute
the demand had gone by, and many of
the packages of notes were returned
unpaid"
The secretary invited criticisms on
this particular section. Chairman
Springer asked how the secretary's plan
differed from the Baltimore PLAN Car
Isle explained the technical difference
The Baltimore plan proposed a deposit
of so per cent, under certain conditions,
while the treasury plan proposed a de-
post of 30 per cent. When the bank
fails the treasury plan contemplates
an assessment on all national banks,
they in turn having a lien on the failed
bank. Representative Hall of Missouri
suggested that there was a prevailing
opinion that it was unsafe to place the
currency in the hands of corporations
and banks. TT will work automati-
cally," said Carlisle. 1.-THE banks will
not expand the currency unless the pub
lie needs it. Their interests will be TO
expand and contract as common inter
ests demand it." The secretary stated
that this feasibility was much more de-
sirable than the rigid system by which
a certain amount of currency was out
standing, At one time the stringency
was so great that banks drew out 3d.
100000 under pressure, and if it had not
been for Canadian banks, who sent
currency into this country, serious re-
suits might have ensued.
Comptroller of the Currency Eckles
appeared before the committee and
made an elaborate statement. He con-
tended that the national banking laws
were not to be lightly dealt with, and
should not be altered unless it was abb
solutely known that the change would
be beneficial