Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-07
THE CARLISLE PLAN.
Congressman Swanson Ipprols Of Il
Highly.
1T SHOULD BE MADE LAW
II Would Afford Great Relief to the People
and Stimulate Business-Democrnfs
Should Press IL.


WASHINGTON, December 6.-tspcciaL)
In an interview with Hon. Claude a.
Swanson, member OF Congress from the
Fifth Virginia District the latter said'
From a cursory examination, l am
pleased with the recommendations OF tne
Secretary of the Treasury upon the cur
rency. II adopted. they win eliminate
many of the evils Of the present system
and give much-needed relief. The plan
reforms the national banks and destroys
their worst features 1t destroys that
feature OF the system which requires
deposit of bonds for the issuance Oh
currency, and permits currency 10 DC
issued to the extent Of 70 per cent. upon
the paid-up capital This is great I'M
provement.
Under the present law, a bank would
have TO pay about one hundred and twen-
ty thousand dollars for bonds. on whicn,
when deposited, the government wouiu
issue $4,000 of currency, retain per cent.
for a reserye-fund. and give the bank
only about eighty-five thousand dollars
IN currency. Thus the bank really mas
S35. 900 less to accommodate its customers
with than before.
The issuance OF currency under the pro-
posed system Of the Secretary's would
Increase greatly the power OF the banks
to accommodate their customers. and re-
suit in a safe, sound expansion OF the
currency.
THE surplus and capital of national
banks on the LIST Of July, 1898. amounted
TO se29. .e29. .9i9.59. Under this system these
IN the extent
of S6g7. .222. 1921. To obtain this they would
have 10 deposit 30 per cent. OF Treasury
notes In the Treasury, amounting to sZOs,-
1S6. 1856. Thus there could be an IN
crease Of currency TO the amount OF
$iss. .O55. .723.55 with the present nationai-
bank capital.
STATE-BANK ISSUES.
The system provides for the issuance
Of currency under a safe system by state
hanks. also. The capital and surplus OF
state banks on the 1st OF July, 1888.
amounted to $752. .213.527.00. These banks
could issue currency to the extent OF
sjg4 1eO 24s. They would have TO deposit as
n redemptlon-fund TO secure this Ses.zss'- :
OI3. 50. which would give an increase OF
currency In circulation among the people
of $59i, ,gl2173.
Thus with the present capital of banks,
this system would give US an immediate ex-
mansion Of the currency to the amount
OF $SS2. .967, ,S96, or about fourteen doiiars
per capita.
II more currency was needed and de-
manded by the people, more capital wouid
be invested In banks, and the demand
thus satisfied.
This system limits the currency by re-
auiring a deposit of 30 per cent OF Trea-
nv. nh
of such notes, which can be so used. SO,
upon these, when deposited in the Trea-
sury. there could be issued about N,656,-
OoO,000 currency.
Thus. If needed and demanded by the
people and commerce, the currency
under this system, can reach the expan-
sion OF about 81, ,166, 10000, or about Ns
per CAPITA. This will give immediate re-
lief and give great stimulation TO busi-
ness. The currency will be safe and
good, both when issued by State banks
and national banks.
SAFEGUARDS.
The safeguards are superior TO those
of the present national-bank system. The
system VIII prevent the congestion Of
the currency IN large comm erclat eentres.
It will decentralizs our financial system
II viii give In every village and city
currency issued and controlled at nome
In addition II will destroy the necessity
for the sale of any more bonds to pre-
serve the gold reserve. l am opposed TO
the sale OF bonds.
Under this system all the Treasury
notes, which deplete the Treasury Of gold
will be deposited with the Secretary ol
the Treasury as security for the redemp-
ton of the currency. Thus the system
wisely protects the Treasury against all
raids for gold.
UNREASONABLE CRITICISM.
There is no truth in the criticism that
under this system the government loans
| its credit to banks without profit. The
| system requires the banks TO redeem their
| own notes. The government only sees
| that when the banks fail to discharge
| their duty and redeem their notes the
| assets, which are far in excess OF the
| note liability. are applied to the protection
| OF the note-holders. There Is no possi'
bility OF the governments losing a cent
| The system gives safe. sound, elastic
| currency, increasing and decreasing ac'
| cording to the wants Of business and
| commerce.
The party should unite and push this
system through. 1t Is so much gained
| and a great relief II will restore the
confidence of the people in the Demo
| cratic party. We have had enough dis
| sensions in the party. II is time Tor com
| promise and union.
The people will hold responsible those
| who now Interpose and prevent this great
| relief and reform. 1t is not all we want
| but II is far better to take this than tc
leave the present system In existence
| or accept a settlement OF the question In
| the next Congress at the hands OF The
| Republicans.