The Washington times., 1894-12-22
OFF WITH THE OLD;
ON WITH THE new
Chairman Springer Offers a Sahsti-
tute for the Currency Bill.
AN ENTIRELY NEW MEASURE
Framed to Meet the Objections of the
Dissatisfied.
Finding 1t Evident That the Original Meas
ure Could Not Pass the Committee Brings
in New One-Does Not Compel National
Banks to Adopt the Few system Unless
They Desire-Many Other Changes.

The predictions in Yesterdays TINES that
the currency bill was to be much modified
were quickly verified. Early yesterday morn
ing many membcr5 of the Committee on
Banking and Currency hal agreed that the
bill must be either very much amended or al
together al anGoned. A conference was held
with Secretary Carlisle and Il conclusion
reached that the easiest way would be TO
abandon the old bail and bring in an entirely
new one, which, while it would carry much OF
the general plan of the old one, differs ma
tcrially, and is intended TO meet many of the
objections urged against the one under dis
cussion.
Probably the most important change is
that which will permit the national banking
system to run along without an arbitrary pro-
visions that banks must organize under the
new system. The original Carlisle bill con-
tempiated that all national banks must reor-
gauiZe under the new plan.
The other important feature OF the substi-
tute is that it does away with the unknown
liability of banks 10 guarantee the notes oi all
other hanks. This feature of the orig nal bill
has been much criticised. II contemplated
that il a pa.onal Lank failed its notes would
be paid out OF its assets and the general
safety fund made up by all the banks But
if the assets and safety luri were insufficient
To nay the notes OF the failed bana. then the
Comptroller OF the Currency was To make n
pro rata assessment on al the banks OF the
country The bank said this prospective as
sess ment shouldered them with an unknown
risk. In effect it made them sup ly insurance
on all the notes o. banks in which they had
no concern.
Ia view of these criticisms the substitute
III,
safety fund" will be the limit of the Joint
liability OF ali The ban&s for the failure of in
div lua! banks. They will however, be COM
PEELED TO keep up this safety fund by more
rigid provisions than appeared
IN THE ORIGINAL ELL.
The wording of the first section, which had
teen so much criticised, is materially changed
and so framed that it only repeats the present
banking law regarding the issue OF bonds,
when it relates 10 associations taking out
circulation under this act, thus really leav-
ing the present national banking law in full
force for hose banks who do prefer to oper-
ate under it.
The second section provides that banks can
not only deposit legal tenders to secure cir
culaIioH but aisO currency certificates issued
under section 5l93 l.. s.
/ In section provision is made for keeping
up the safety fund, and in addition 10 the
/ terms OF the original bill it is provided that
/ the collection OF said tax OF one-fourth o. l
/ per cent. for each half year shall be resumed
/ and cont nuod until the said fund is restored
/ to an amount equal to 5per cent upon the to-
tai circulation outstanding"
Ali circulating notes of failed national
( banks not redeemed on presentation 10 the
Treasurer of the nited States or an Assistant
7 Treasurer of tine Uuiled States shall bear in
terest a. the raie OF per cent. per AMMAN
from the Gate OF the suspension Of the bank
until thirty days after pubic notice has Deen
I given that funds, are on hand for their re-
demption, and such notes shall constitute first
lienupon all money thereafter received
INTO THE SAFETY FUND.
An entire new provision is added as to
State banks as follows:
whenever the Secretary of the Treasury
and the Comp troller of the Currency shall be
satisfied that any banking corporation duly
organized under the laws of any State. and
: which transact5 no other than a banking
/ business, as provided in this section has been
INCORPORATED under the laws of the State
/ in which it is located which laws
require that the stockholders shall be
individually liable for the redemption Of its
circulating notes TO the full extent OF their
/ ownership OF stock, and that such laws re-
quire that the circulating notes thereof shall
IL ltSl licn u1Ol dil dSSt-tS Oh Tue
bank and also that such laws require such
bank TO keen on deposit at all times with an
official of the State authorized by law to re-
/ ceive and hold the same guarantee fand as
required in the fourth paragraph OF this Sec
ton, they shall issue TO said bank certificate
to that effect. ThereUgon said bank may
issue its notes as provided in this act. and
thereafter the tax OF 10 per cent. heretofore
imposed by law upon the circulation of the
notes OF State banks shall not be assessed or
collected upon the notes of such banks
The bill was presented in tie House just
before adjournment yesterday, with an under
standing that it would be considered as a sub
shtute and discussed as such.
The day was spent yesterday in discussion
OF the BILL which was sharply contested by
Gov. Sckies and Mr.. McLacrin of South
! Carolina, after which the House adjourned
| until to-day, when an adjournment until
January will be taken.