Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1894-12-13
CURRENCY PLANS.
Those Presented BY escFstary Oar
Hale and Comptroller 1okelA
l PROMINENT SENATOR'S OPINION.
IT, Results - ~ Plans whsn Applied y
Pasties Their Elects Upon The
velnns Of Msasy h CIr.
sulatioa.

Pnsties- Their Effects Upon The
velnns Of nasasy h CIR.
sulAtioa.
WASHINGTON, Dec. G--Mr. Carlisle'l
plan Of currency reform Is attracting
great attention in and out Of congress
and while his plan "a fsvorably com
mented on by many prominent mem
bers Of both houses, there are Others
whose opinions are Of value who argue
that the plan proposed by Comptroller
Eckels. in his annual report, has SUI
perior merit, and when thoroughly I'M
derstood will meet with general ap-
proval. A prominent senator who Il
recognized authority on all financial
questions explained his views on the
two plans He said;
Mr. Csrlisles plan for currency reform,
when applied to practice. will produce thu fol-
lowing results: Taking for the purpose Of
illustration the example Of bank having iio0,-
wv tupltult SUN = V4Nh HoNitl VC IhtttAN7A W
issue notes up to the limit Of e75,Ooo Us per
cent Of the capita.), but before doing 80 must
deposit legal tender notes to the amount Of
te.,50D 80 per cent Of circulation.
This In effect would be equivalent to net
issue Of tss,s00 In circulation BY the bank, or
t55,0l0 received In notes from the government
Upon this 1900 Of currency the bank would
earn It's profit provided 1t could keep them In
circulation. after deducting costs Of redemp-
tlon tux for safety fund" and tax for adminis-
tration Of comptrollers bureau.
As 10 plan for relieving the general govern
ment from the burden and charge Of redeeming
| United Stites notes II would, according to the
secretary's estimate. result In securing the
temporary deposit Of *ssS,f O),ON Of these notes
| with the government II oil the national and
state hunks now in existence should take out
circulation to the full amount proposed Letus
see how this result would be arrived at Tho
present capital Of oil national banks now In
existence Is about .ocs,OOo,OOo. II to this Is
added ssa:. 10000 as the capital Of state banks
availng themselves Of the privilege, total
capital Of tlNOO,OO0,0O0 would be had as the
basis upon which TO Issue currency. Assuming
that all the banks possessing this capital Is
suad ourranrv nm IN the fuIl limit NJ II ner
ssnt We vii, iii haye nm iSs,,s NJ hant currency
~ Tho "mount ~ trs0 ono an Against iris Ia.
rai ,sndsrs n Tho amount NJ N ner cent Of cir
cuia,ior must he deposited. or ~ O01.Ooo
What viii he the eject a this upou the vol
ume Of money In circulation!
Add bank notes issued, i750,0O0,O 900; less no
,lonul hnnh c,,rroncv retired ARR 00D.0(): legal
tenders r' denoslted And Withdrawn from circu-
iatIon ~; an M. total an7 .0DO 00O, net in
crea " IN circulation. &,,sOOm
Assuming thnt this increase could be
fsn0p ~ limited states notes a enected
temn,rnrilv hut a. there IRE aOe,0OOODO al
thesc nltovether outstondinr. there would
Xiii rcmain outstnndinc thc major nor.
,inn N ia mnss y about ssSOolOOO' 10
havrnss thc TREASURY nv presentation for
rsdamn,ior IN vold Il the s-0,0l00 Il not
Lcut n c,reulation the amount ~ levaI tenders
,sturnci NV redemntlon ~ Circulation would he
nadcd n ,he large sum not refunded. Apnin.
II ths Loo Il tenders denosited nv the hanks nre
tn he uscd Tor redemntion Of those notes on
nrescn.ntuion. there would he NO dIf,ic,llty In
rrocur,nv INV amount NJ them nv preseutine
pink notes.
so mucn TOT inc working OF inc secre-
mry's PLAN ana now We take look as
the plan proposed by comptroller Ecke's'
~ nc gives rev figures on wn'eh 10 pase
his rlnns onlv "A hvnnotic Illustration az It's
practical working can DO attempted Iakinga
,he co,nntrollcr's nlnn 4 nnears 70 reouirc TINT
The bank deposit with the treasury w. win
United states or legal tenders (ior cancella-
tlonl, In exchange tor which II Will lmmedlate-
" receive : o'WJ ~ bank notes. ior me current
redemption Of which only itshall be liable dur
ing Its lifetime the government ASSUMING TO-
fponsibility Tor ultimate redemption OF the bank
notes Of this class only upon inc failure or
liquidation Of the bank In this feature there
fore, there is neither expansion nor contraction
Of the currency, simply the exchange OF one
kind of currency TOR another Just as good but
for the purpose and with the eject OF entirely
relieving the government 0f the burden and cost