The McCook tribune. (McCook, Neb.) 1886-1936, 1894-12-28
A New Financial Scheme.

WASHINGTON, Dec. 22.-The Carlisle
currency bill. now before the house
of representatives, will be withd rawn
and a substitute presented. The de-
cision was reached after a caucus of
the Democratic members of the bank
ing and currency committee quietly
held last night, followed by a confer
ence between Secretary Carlisle and
Chairman Springer. The substitute
will be offered to the house before
the holiday recess, as the desire of all
concerned is to get it before the coun-
try prior to the adjournment.
The caucus of the banking and cur
rency committee De ocra at which
the decision was reached. was held at
the committee room, the following
members being present: Messrs.
Springer, Cox, Culberson, Sperry,
Warner, Cobb of Alabama and Ellis.
The absentees were: Messrs. Cobb
and Hall of Missouri, and Johnson of
Ohio. The discussion took a wide
range and the sentiment was general
that the bill would have to be mater
tally changed in order to meet the OBJ
jectious and command a support
which would secure it's passage. The
needed amendments were formulated
and it was arranged that Mr.. Springer
should see Secretary Carlisle to-day
and submit the contemplated changes.
When Secretary Carlisle and Mr..
Springer met to-day it was deter
mined that the better plan would be
to frame a new measure in the shape
of a substitute instead of muti.ating
the bill with many amendments which
went to its vital principles. Accord
ingly. the substitute was agreed on in
full and, as soon as it can be copied
and put into proper form, it will be
presented to the house and will
thenceforth be the bill on which the
currency debate is to proceed.
TWO IMPORTANT CHANGES.
Two very important features make
their appearance for the first time in
the substitute. The main one will
have the effect of allowing the ma
tional banking system to run along
without an arbitrary provision that
banks must organize under the new
system. The original Carlisle bill
contemplating that all national banks
nus Gol dLlZC uEuCI Jlt uCW pldu.
This would have forced them to sur
render the government bonds which
now constitute the basis of their cir
culation. Under the substitute, if
national banks wish 20 continue to
hold their United States bonds and
issue circulation thereon, they may
do so. 1t is felt that they will soon
discover the advantages of the new
system and will therefore adopt it
voluntarily.
The other important feature is
that il does away with the unknown
liability of banks to guarantee the
notes of all other banks. This feature
of the original bill has been much
criticised. 1t contemplated that if
a national bank failed its notes would
be paid out of it's assets, and the
deficit made out of the general
safety fund" and if this should not
be enough to pay the notes of the
failed bank, then the comptroller of
the currency should make a pro rata
assessment on all the banks of
the country. The bankers said
hat this plan placed before them
an unknown risk. In effect it
made them supply insurance on
all the notes of banks in
which they had no concern. In view
of these criticisms the substitute will
do away with the assessment plan.
The safety fund" will be the limit
of joint liability of all the banks for
the failure of individual banks. They
will. however, be compelled to keep
up this safety fund by rigid pro-
visions than appeared in the original
bill. Resides these two main changes,
there are many lesser ones.