The Caucasian. (Clinton, N.C.) 188?-1913, 1894-12-13


finance minister Of the admini8tra-
ton has single qualifying official
utterance. The new Democratic
currency plan, credited to him, is
borrowed from the suD-trea5ury idea
Of an emergency currency. 1t Is
simply an appropriation of the Pop
ulIsts plan. Speaking Of it to-day
Senator PETER said: "Thcre is no
criticism which the bankers made to
the sub-treasury plan that is not
arpllable Il hundred fold to the Car
Isle plan" There is no material
difference, in principle, between a
warehouse receipt and the capital
stock, or assets, of National banks"
CarIislc's plan fayors the bank stock
in preference to the farmers "ware-
house receipt as security for It's in
dorsement. Considering that the
banks own the administration, and
dictate its financial policy 1t is a per
fectly u ural selection. Secretary
Carlisle Is thoroughly discredited by
business people everywhere. Vas
ciIIatioD, contradiction, instability
Of purpose, inconsistency, ignorance
have distinguished his official car
reer rs the nominal head of the
treasury department. The press Of
the country sustained by a prepon-
derOuS commercial sentiment,
have repeatedly urged his retirement
from the Cabinet. The STEPS were
taken in support of the sub-treasury
principle save his administration
from unqualified condemnation.
AUTHOR OF THE PLAN.
it contemplates the issue of ma
tiOnal bank notes to the extent OF
rs per cent Of capital invested. The
Populist sub-treasury plan contem-
plates the issuing of money on GER
tain per centage Of actual market
able products. The principle is the
same. The objection to the Carlisle
plan is that it discriminates in favor
of the banks. National bank notes,
under present conditions are secured
by government bonds. Under the
operation Of the Carlisle plan the
government assumes no liability for
these notes, but requires deposit of
30 per cent of circulation as a re-
demption fund. The holders must
look to the banks alone to redeem
tn bank papers. AS a security the
note holder has the safety fund in
Gliding that particular banks 30
per cent. redemption fund to fall
back upon. Should the safety fund
be impaired by paying the notes of a
particular bank the deficit is made
good by an assessment of all the
banks, the contributing banks in
turn to be reimbursed from the as
sets, including the deposits, of the
failed bank. 1t lacks the dlrectness,
simplicity and security of the "ware-
house receipt plan.
A VICIOUS FEATURE
of the new plan is the renewal of
wildcat State bank currency.
State banks may issue currency to
IS per cent. of their unimpaired
capital on condition only of keeping
a guaranty fund of 70 per cent. of
this amount in treasury notes. There
is to be no Federal supervision over
these State banks further than that
the Controller of the Currency and
Secretary of the Treasury must be
satisfied that such bank has never
issued paper in excess of IS per cent
of its paid-up unimpaired capital;
that its stockholders are individually
liable for the redemption Of its notes
to the amount of their stock; that
notes are a first lien on the assets Of
the bank; that the bank has kept a
guaranty fund in legal tender notes
to the amount of 80 per cent Of its
circulation, and that it has paid its
notes on demand.
WILDCAT CURRENCY OF '09.
The revival of State bank cur
rency recalls the wildcat currency
panic of 1880. In the complete de
struction of currency uniformity it
strikes a fatal blow at the farmer
and wage Garner. State currency
will depend for its value on the re-
spOnsibility of the bank issuing it
and the honesty of its management.
At any time 1t may produce chaos,
| depreciation, and panic. But it is
this rotten feature of the scheme
that makes it popular with Southern
| H., i
the bait greedily. 1t means to them
the subordination of the silver ques-
ton as a secondary issue in 1896.
The party is hopelessly divided on
silver. In the Carlisle scheme they
see the possibility of averting what
seems an inevitable split in the next
| National Democratic Convention.
That consideration is behind the
| present agitation. 1t is intended as
a 'makeshift," and this expectation
of the advocates is that it will eli
inmate the diStracting silver ques-
ton as national issue. 1t is the
remaining hope of maintaining the
party organization through another
campaign. 1t is a good enough
'makeshlft" for that purpose. There
is some prospect that the project, IN
a mutilated form, may pass the
House. 1t will encounter strong and
determined opposition from honest
' free silver Democrats. 1t may pass
| the House as matter of record,
but tits safe to predict its defeat in
the Senate. Its enactment into law
is not the intention of its advocates.
1t is the deathbed gasp for the last
breath by ID defeated and discredited
party. But the agitation may have
! ADDITIONAL SIGNIFICANCE.
| Secretary Carlisle has fiaoran+1v