The Lamar register., 1894-12-15
NIX. CAKLlSLEo ) PLAN.
SUBMITTED TO a COMMITTEE
Tn. secretary and compiroIirr Eek-i.
Explain Their Ideas on Currency h~
form to Congre-smen-

IN the room Of the Committee Of Ways
and Means. where Secretary Carlisle
and Comptroller Eekels appeared py
| Invitation before the House COMMITTEE.
| on Banking and Currency TO explain
| aud advocate the new banking plan
| prepared by those two officials and IN
dorSed by the presidents message The
room was crowded with members OF
the house and Intense interest was
manifested Secretary Carlisle was ex-
| amIncd and cr,oss-examincd by the
| members OF the committee. He had tho
rough draft Of a bill In his possession
| but after his examination It was CON
cluded to r,'y.sc II before submitting
/ II TO the committee. Mr.. Carlisle and
] Mr.. Eckels differed somewhat as 20
the details Of the proposed banking
scheme. but agreed upon tn. principls-s
to govern 1t. Carlisle will APPEAR again
on Wednesday.
Tomorrow Mr.. Hepburn, Horace
White and other New York bankers
will b. heard
Mr. Carlisle adopted an easy. con
vrrSatloual style Of address He said
he was ready to answer questions from
the committee as well as elaborate hi-
own views.
F..-st-Rcps-al all laws requiring y
authorizing the deposit of United
States bonds As securities for circulA-
ton. and second. permit national hanks
20 issue notes 20 an amount no; esc'-si-
ing - I-'r cent. Of their paid-up and un
Impaired capital, but require each
hank before r..c,9viuE notes. TO g..
posit guarantee fund consiStiuE of
United Ssafss legal tender notes. in
Guiding treasury notes OF iS~l 10 fh1
amount of ~ per CENT upon the clrcu-
lafine notes applied for. This T.ercsni-
age OF deposits uTson the circulating
notes outstanding to be CaintA a..d
at all times. and whenever a hanG ~
tires it's circulation. In whole oy In
part, its guarantee fund TO b. returned
TO It In proportion to the amoun; II
notes retired.
Mr.. Carlisle said he was satisfied that
the pne~ent law requiring the pr~-at
deposit Of bonds TO SECURE circulation
prevented the elasticity OF IN. cur.
rency
''The provision OuriIned.- said Mr.
Carlisle. gives ample protection with
out the deposit OF bonds a. required by
the present law
Mr.. Carlisle said the practical value
Of a reserve fund OF currency was
shown In 1876. There was demand
for money. asgresatins sio,eo1orp.
The treasury did Its best 10 meet the
str-ngency. but by the time the aotsS
were neady 10 distribute the demand
had gone by and many OF the packaE.-S
OF notes were returned unopened.
Representative Hall OF Missouri su.-
sestcd that there was a prevailing opin-
Ion that IL WAS unsafe 10 place th.. en-
tire question OF the expanding Of the
currency in the hands OF CORPORA tons
and banks
1T will work automatically said
Mr.. Carlisle. banks viii not expand
the currency unless the public needs
It, Tpesr interest will b. 10 expand
and contract as the common interests
demand il. These Interests will. there
fore. control az all times
The secretary stated that this fexl-
bility was much more desirable than
rigid system. by which a certain
mount OF currency was outstanding. Al
one time the strineeucy was - gr.. Il
that the banks drew out SI3pspO.-p
under pressure. and II Il had not been
for the Canadian banks who sent cur.
rs1cy into this country serious results
might have ensued.
Concerning the state bank feature of
the plan. Secretary Carlisle said.
1T suggests merely a plan by which
state banks could act II they ssr,v fit.
But the government has no direct con
cern with state institutions, the plan
simply gives them the privilege OF act
ing under certain conditions II they
see fit. The secretary then took up the
proposition that no national bank note
hn of los M..rlnr.DIrn.L.... L.. S.n a..