River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1894-12-20
THE CURRENCY QUESTION
Carlisle Outlines His Views Before
the House Committee.
Editor white Also Formulates n Measure
Dir. Ferris Ideas-Banker Cornweu
Has "A Plan-Dodsworth
Is Heard.

WASHINGTON. Dec. 1.-THE hearing
before the house banking and cur
rency committe on the question of
reorganization of the currency laws
was resumed in the room of the ways
and means committee, but did not
move off very promptly.
1t was expected that Secretary Car
Isle would present his currency bill
and continue his statement of Mon
day, but as the secretary was late in
arriving, Mr. White, editor of the
New York Evening Post, opened the
hearing. Mr. Johnson asked Mr..
White opinion on Secretary Car
isles currency plan. Mr.. White an
swered that he did not think the Sec
retary's plan would give the elastic
currency it sought to secure. 1t COM
PEELED banks TO put up thirty cents
every time they issued seventy-fve
cents.
At the close of Mr.. Whites state
ment he submitted his bill on the lines
of the Baltimore plan. Mr.. Homer
stated that the committee of national
bankers had not yet formulated their
bill.
The following is n synopsis of the
bill presented to the banking and cur
rency committee by Horace White
The first section provides that no bank
Ing association shall be required to de-
posit United States tonds either prelimi-
nary to the CON mencel ent of banking BUSH
ness or for the security OF circulating notes TO
be hereafter issued.
Section provides that in lieu of the depos-
of In 10 nat nSgnPintfnn
shall be entitled to receive circulating notes
from the comptroller to the amount of -
per cent. of its paid-up unimpaired cap
ital, upon paying to the treasurer law
full money to the amount OF per
cent OF such circulating notes, and there
after tax at the rate of one-haf of
per cent rer annum upon the average amount
OF its eireula .lon for the year, to constitute
guarantee fund for the redemption OF notes of
| insovent national banks. and the tax is to be
| collected until the ud amounts to not less
than per cent 1f Ao,g Lire circulation issued.
This fund is a TO be in addition to the per
cent redemp ton fund now pro gided by law.
Section provides that ia addition TO the
amount of the circulating notes provided for
| each ass citation shall be entitled TO re-
ceive from the comptroller circulating notes
to the amount of 25 per cent OF its
! PAL i-up, unimpared capital upon paying
| to the treasurer per cent OF such additions
al circulation, and that the tax of one
/ Hdli OF per cent per duuuu uL1ou tue dNCitaES
amount of the same outstanding and an addi-
! tional tax at the rate of per cent. per annum
! upon the amount OF such additional eircula-
| tion outstanding for the year, all OF which
sums are to be part OF the guaranty fund
Section is devoted to the insolvency OF
national banking associations, and it Is
/ provided that when such insolvency shall
| be ascertained IN the case of any par
ticular association its outstanding circu-
( / ting notes shlll be redeemed by the
] - "a. faA TOT mt of he
| guaranty fund II that be sufficient, and If not
/ sufficient out of any fund in the treasury.
I After the loss on the account of any particular
! failure has been made good to the guaranty
/ fund the United States is first 10 be paid for
| all advances made.
Sec. 2. Associations applying for circulation
/ after the first payments into the guaranty
1 fund shall have been made may receive clrcu-
| lating notes from the comptroller upon paying
\ into the fund a sum bearing ratio to the cir
/ culation applied for and allo we'd which the
/ guaranty fund bears to the total circulation
outstanding
| Section provides that whenever bank notes
are + sued to any association under this act 1t
shall be the duty Of the secretary OF the treas
ury to cancel legal tender United States notes
4 and treasury notes t. the amount of SO per
| cent. of the bank notes so issued.
Section 10 provides that any association may
! retire its circulation or any part of il at any
/ time upon depositing with the treasurer an
| amount equal to the sum desired to be with
/ drawn.
Section 70 repeats section o Of the act of July
] 70 1882 and also the portion Of the act of June
| 90. 1874. which provides that the amount of
| bonds on deposit for circulation shall not be
reduced below $50 100 and provides that any
association heretofore organized desiring to
withdraw its circulating notes in whole or in
/ part may do so under the provisions of the
act of June 20, 1874, modified as above indi-
| Gated.
At the conclusion of Mr. Whites re-
marks Secretary Carlisle appeared and
presented draft of his proposed bill.
A synopsis is as follows:
In the first section all acts regulating the de-
! Iosit of United States bonds to secure eircu-
/ lating notes Of national banks are repealed
The Sec I'd sect on provides for the issuing
| of circulating notes to national hank eq lal
o % per cent. OF the paid-up and unimpaired
capital upon depositing legal tender notes
with the United States treasurer equal to 30
! per cent. Of the circulating notes applied for.
1 These circulating notes shall be in denomina-
| tions Of $40 and multiples OF ten, and shall he
uniform in design.
Section levies duty OF 4 per cent. for each
half year upon the average amount of a banks
notes in circulation.
Section provides for the mode of redemp
tion and retirement OF banks circulation.
Section 3 creates the safety fund for the
prompt redemption of circulating notes OF
failed national banks. Each bank shall pay TO
the United States treasurer in the months
of January and July In each year tax OF
a per cent. for eGch half-year upon the av
erage amount Of its circulating notes outstand-
ing until said fund amounts to per cent of
the total amount OF national bank notes out
standing, and thereafter siid tax shall cease
A bank retiring reducing it's circulation
shall be entitled TO withdraw any part of this
fund. The mode of procedure in case of a
banks failure is outlined
Sect ION 6 allows the secretary of the treas
ury to invest money belonging to the safety
fund in United States bonds.
Section provides that on July 1. 1895, ma
tional banks now having bonds on deposit may
withdraw them and substitute the 30 per cent.
guarantee fund.
Section repeats previous acts conflicting
with this measure.
Section provides that the secretary of the
treasury may. in his discretion, redeem and
retire United States legal tender notes; that
no United States or treasury notes authorized
bv the act of July I, 30 Of a denomination Of
less than 80 shall be issued
Section 10 states hat banks duly organized
under the laws of any state which transact no
other than banking business SHAH be ex-
empt from taxation under the laws OF the
United States under certain conditions regu-
latng state banks.
Section II provides that state banks shall
not issue notes similar in design to United
States notes or certificates national bank
notes.
Thursdays Session.
WASHINGTON, Dec. 15.-There was
again large attendance at the meet
ing of the house committee on bank
ing and currency Thursday morning
number of eastern bankers and
financiers were present and presented
their views on the Carlisle and Balti- |
more plans.
Mr.. Ferris Ideas.
A letter was read from r. h. Ferris,
vice president of the Bank of New
York. 1t said:
There seems TO be no good reason why ex-
listing national banks who have United States |
bonds on deposit with the comptroller should |
not be allowed to continue as they are until
their charters expire or the deposited bonds |
are paid OF. Section of Mr. Carlisle's bill
seems like forcing the banks TO do what they !
have not been consulted about
MIR Ferris advocated the establish
lishment of central redemption agen-
cies, which would, he thought, en-
nance the elasticity of circulation
based on a deposit of bonds. Refer
ring to section 10 of the Carlisle bill, |
providing for the issue of notes by |
state banks without the provision of a
sinking fund, Mr.. Ferris said:
1t makes the bill simply Initiation meas