The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1894-12-28
NEW CURRENCY BILL.
SUBSTITUTE FOR CARliSlE'S
PLAN INTRODUCED.
Do Many Objections to the Old Ono
that Mr.. Springer and Secretary
Carlisle Decide to Submit a New
Mcasure-News Notes.


After conferences between the Demo
cratic members of the House Committee
on Banking and Currency and with the
approval of the Secretary of the Treas
ury Mr.. Springer introduced a substitute
for the Carlisle currency bill. II is sub
stantially new measure, although some
of the sections of the original measure
are retained in the new bill.
Two very important features make their
appearance for the first time in the sub
stitute. The main one will have the effect
of allowing the national banking system
TO run along, without an arbitrary provis-
ion that banks must organize under the
new system. The original Carlisle bill
contemplated that all national banks must
reorganize under the new plan. This
would have required them TO surrender
the government bonds which now consti-
tute the basis of their circulation. But
the substitute does away with this inn
perative change.
The other important feature Of the SUBJ
stitute is that it does away with the UNI
known liability of banks to guarantee the
notes of all other banks. This feature Of
the original bill has been much criticised.
1t contemplated that if n national bank
failed its notes would be paid out of its
assets and the general safety fund.-
made up by all the banks. But if the as
sets and safety fund were insufficient to
pay the notes of the failed bank, then the
comptroller of the currency was to make
n pro rata assessment on all the banks OF
the country. The banks said this pros
pective assessment shouldered them with
an unknown risk. In effect ii made them
supply insurance on all the notes of banks
In which they had no concern.
In view of these criticisms the substi-
tute will do away with the assessment
plan. The safety fund" will be the limit
Of the joint liability of all the banks for
the failure of individual banks. They
will, however, be compelled to keep up
this safety fund by more rigid provisions
than appeared in the original BILL
The new bill is arranged so as to show
the new features in parentheses. The
first section is as follows:
"(a). That $50 much of all acts and
parts of acts as required or authorized the
deposit of United States bonds TO secure
circulating notes issued by national bank
ing associations Tor as required such as
socations to deposit or keep on deposit
! United States bonds for any purpose eX-
cept as security for public money! be, and
the same hereby are repealed (as to asso-
Citations taking out circulation under this
nct); and such notes shall not contain the
statement that they are so secured"
Section 2 is changed so that banks can
not only deposit legal tenders to secure
circulation, but also currency certifi-
Gates issued under section 5193 of the re-
vised statues of the United States"
Section 3 is retained entire, except that
its provisions are restricted TO apply to ma
tional banking associations taking out
circulation under this act"
Section 4 inserts 1.-THE comptroller of the
currency" as the officer to designate the
place where notes are TO be redeemed.