The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-12-19
UNDER FIRE.
Carlisle's Banking Bill Before the
House.
1T is ADMITTED TO BE SIMPLY
A COMPROMISE MEASURE.

And Fails to Meet the Views of ANY Men,
Der of the Committee ON Banking or of
the House-Represenratiye Walker of
Massachusetts Discussed the Bill.
Washington, December 1S.-The House
went into committee Of the whole on the
currency bill. Mr.. Springer began dis
cussion of the bill.
The bill, MIR. Springer said, did not
represent the views of any member of
the banking and currency committee, or
of the House in it's entirety. 1t was a
compromise measure, submitted as the
best that could be hoped for at the pres
ent time. Mr.. Springer quoted from the
report of the committee to show what
the bill required in lieu of a deposit OF
United States bonds or other interest
bearing obligations as security for circu-
lating notes.
AIr. .Sickles, interrupting: One section
of the bill gave. the note holders the first
lien upon the assets of failed bank, and
another section gavesthe banks contrib
uting to the safety fund also first lien
upon the assets of failed bank.
Mr.. Springer-Ths gentleman is mis-
taken. The note holders have the first
lien upon the assets of the, bank. When
they are satisfied, the banks contfibut-
ing to the safety fund shall have the
first lien upon the remaining assets. to
make good any impairment of the
guaranty fund. The insertion of the
word remaining will cure the defect
in the gentleman's view. Mr.. Springer
contrasted the provisions of the bill for
the redemption of the notes of failed
banks with those of the so-called Balti-
more plan, asserting that they were
Identical with those In effect and ex-
tent, and all national banks and bank.
ers in the United States, he said, en-
dorsed the Baltimore plan.
Mr.. Mahon, Republican, of Pennsylva-
MIA, asked what would be the effect Of
the scheme were half OF the banks to
fail Would the other half be assessed
to pay the debts of the failed banks? !,
Mr.. Springer responded that il all of
the banks failed, the fund provided in
the bill would be vastly more than
sufficient to meet every demand made
upon it. Discussing the mutual liability
proposed, Mr.. Springer called attention
to the fact that it was similar to the
provisions OF the Canada and Scottish
systems InsCauada the notes of failed
banks bore six per cent interest. and
generally went at once to premium.
They were sought by bankers and fnan-
ciers as investments.
Mr.. Walker, publican. of Massachu-
setts, said that Our banking system is SO
faulty that it was costing the people
thirty millions of dollaIs yearly for the
machinery of loaning capital after they
paid the interest. We loaneed only
So, 200, 0G0. 900 of 50, 800, 600, 900 capital,
and no other banking system tied up
so much of its loanable funds. The
House and the committee on banking
and currency had refused to come to the
aid of the people by providing or propos-
ing the legislation necessary, or any form
of legislation which operated first to
the advantage of the cities, was to the
detriment of the country, anG then it
returned to blast the cities. Mr.. Walker
said the minority had endorsed no bill
and would not until it was in position
to make it's views effective. Mr.. Walker
spoke of the method of redemption of
the notes praosiced IN the Bank of
France, which he said must be followed
here in any safe system of finance. That
was at the option OF the customer to