Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1894-12-14
CARLISLE EXPLAINS.

WAsHINGroN, Dec. l0.-Standing ut
d long table in the Ways and Means
Committee room of the House this
E,orning Secretary Carlisle explained
i'll detail to tho Banking AMI Cur
rency COMMITTEES tho plan recon-
mended by him for tho new banking
law.
When the committee was called to
order Secretary Carlisle was asked by
Chairman Springer to explain what
would be the practical workings of
the currency plan. In answer Mr..
Carlisle said he had come to answer
the questions of the committee and
To mako statement of his plan, but
not to indulge i'll IL general argument,
es that had been done already in his
annual report. Proceeding to take
up his suggestions seriaiim MS they
appeared i'll his report, Mr.. Carlisle
road the first two us follows:
81. Repeat all laws requiring or
authorizing deposit of United States
bonds rs security for circulation.
80. Permit national banks to issue
notes to nm amount IL" o ceeding rs
per cent. OF their paid up and unim.
paired capital, but require each bank
before receiving tho notes to deposit
yuarant, fund, consisting of Unit
ed States legal tender notes, includ
Ing Treasury notes of 1890. to the
amount OF 80 per cent. upon the cir.
cnlation Of the notes applied for.
This percentage of deposits upon cir
culatlng notes outstanding 20 bo
maintained at all times, and whcnev
or the bank retires its circulation, in
whole or in part, its guarantee fund
ia to be returned to it in proportion
to the amount of notes retired
In explanation Mr.. Carlisle said it
had cone to BIO almost generally be.
heved that that provision of law re.
curing derosi of United States
bonds as security for circulation was
failnre. Passing without further
comment to the second suggestion
MIR. Carlisle ho believed that this
proposition was perfectly snfo in
guaranteeing surety OF deposits. The
Treasury reserve. he thought, should
not exceed more than one half of the
outstanding circulation of national
banks.
Mr.. Springer asked Ir. Carlisle to
explain the difference between hi
plan for retiring circulation and that
Of the Baltimore bankers, and the
Secretary gave brief sketch of each
The baltimore plan, he said, provid-
ed for circulation up to so per
cent. OF the capital stock of the banks
without any deposit whatever, but
subject to tax, the fund raised from
which was to be used in relieving
the funds of the failed national banks.
Ii this does not become large enough,
the government is TO relieve the fund
looking to the banks for repayment.
The government plan was that sep
arate fund of 30 per cent of the cir
culation should be held for each banl,
aud in addition there should be n
safety fund, raised like that of the
baltimore plae. But if this fund
should not prove large enough, the
treasury department might assess
national banks pro rata on circula.
ton. The government through this
moons could lose nothing.
In further explanation MI. Carlisle
sand that the banks by his plan are
called upon to keep the safety fund
in tact; il the Baltimore plan, the
government was required to do this
My plan," said the Secretary, re
qu'res the national banking system
to support itself entirely, and relieves
aiie government of all connection
with tie system except to furnish
notes and hold the safety fund"
mir. Carlisle said his plan did away
With the present system of redenp
tion of national bank notes. AT pres
emit the national banks could sond