The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-12-11
HIT ITASWAT IN The EYE
That's What Carlisle Did For SilVsis
Cause Yesterday.

AoeS o83s VSAs8so vs2 ava Suuss
Cause Yesterday.
HE TOLD HIS WHOLE PLAN
Private Corporations to Be Given
Control OF the country's Cur
rsnoy System to Do With
II a. They Please.
WASHINGTON, Dec. l0.-Sccretary Car.
Isle appeared before tho house committee
on banking and currency to-day to give in
detail the features OF tho new currency
scheme proposed In his annual report
and indorsed In tho president's message.
Besides full membership Of tho commit.
tee, Senior Romero, Mexican minister.
and many members Of congress wero
present. Carlisle took up sach section OF
his recommendations:
First-The repeal Of all laws requiring
or authorizing the deposit Of Unitcd Statcs
bonds - security for circulation.
Sscoud-To permit national banks TO
issue notes to an amount not exceeding
rs psr cent. OF their paid up and unim-
paired capital, but require each bank, he
fore receiving notes on deposit, to guar.
antee fund consisting OF United States
legal tender notes, including treasury
notes Of 1890, to the amount Of 30 per cent
upon circulating notes applied for. this
per centaee OF deposits upon circulating
notes outstanding to be maintained at all
times; and, whenever hank retircs. its
circulating notes outstanding TO bo main.
taiued at all times; and whenever o hank
retires ito circulation, In whole or in part.
its guarantee fund to be returned to 1t In
proportion to the amount Of notes retired.
Carlisle said he was satisfied that tho
presoLt deposit Law requiring the present
deposit OF bonds to secure circulation pro.
vented elasticity OF tho currency.
Tho provision outlined" said Carlisle,
''Rives ample protection without tho dc
posits Of bonds. as required by the present
law" Carlisle said the practical value Of
reserve fund currency was shown In 1893.
There was demand for money aeeregat.
ing A0.O0O.0)0. Tho treasury did its best
to meet the stringency, but by tho timo
the notes wcrc ready to distribute tho do.
mand had gone by and many Of the pack.
ages Of notes were returned unpaid. Tho
secretary invited criticism on this psrtic.
ular section.
Chairman Springer asked how tho sec.
retafy's plan differed from the Baltimore
plan. Carlisle proposed . deposit Of 80
per cent, under certain conditions. whilc
tho treasury plan proposed deposit Of 30
kss h f~Sl h..
plan contemplated an assessment on all
national banks, they In turn having lien
on the failed bank.
Representative Hall Of Missouri sus.
gested there was o prevailing opinion
that II was unsafe to place tho power of
the currency in tho hands Of corporations
and banks.
ut will work automatically" said Car.
lisle. "The banks will not expand the
currency unless the public need Il. Their
interest will be to expand and contract
~ common interests demand IT," The
secretary stated that this inilsxibility was
much more desirable tnan tho rigid sys-
tem BY which certain amount OF cur.
rency was outstanding. At one time the
stringeucy was % great that tho banks
0EVW V0t v&osSoSsooS 0ooCS PSuosobO ouu
had 1t not been for the Canadian banks
who sent currency into this country
serious results might havo ensued.
Carlisle said that tho ultimate liability
was on the government by the Baltimore
plan and on the banks by his plan.
johnson asked II tho ultimate liability
Of the government would not inspire moro
confidence In the currency? Tue secre.
tary said Il undoubtedly would, but that
bis plan would insure ample protection
and therefore ample confidence. lilo OK.
plained that in case Of failure OF bank
30 per cent. COOS into tho general safety
fund and II the assets Of tho failed bank
arc not sufficient TO meet all liabilities
without carrying the general safety fund
below tho five per cent, then oil the banks
are assessed to meet the liabilities. The
banks then have lion on tho assets of
the failed bank.
Concerning the state bank feature OF
the plan Secretary Carlisle said: ut sue.
gests merely plan by which the state
banks could act II they saw fit. But tho
government has not . direct concern with
tho state institutions. The plan simply
gives them tho privilege OF acting under
certain conditions IL ihey see it,"
The secretary then took up the proposi.
ton that no national bank notes be issued
Of less denomination than $40. Il would
encourage tho circulation Of silver coins
Of small denominations. These ccrtifl.
Gates were now crowded In the treasury.
Sperry asked II the silver certificates
were redeemed In gold.
"No," said tho secretary. "Thero are
two classes Of notes redeemed In gold,
VIC: greenbacks and treasury notes
under the Sherman act Of 1880. Concern.
ing the ninth provision. the ''repeal Of oil
provisions Of the law requiring the banks
to keep reserve account OF the deposits, "
the secretary said: "rhe present law
keeps bank from using its reserve at q
time when IL needs II most"
Cobb Of Alabama asked: ADO you hold
that tho government owes no obligation
to the depositors?"
''No more," said the secretary. "than /,
is obliged to protect private citizens who
invest funds in manufacturing concerns
corporations, etc.
| TALKING lT ALL OVER.
/ Tha paiitIrian Sne nj !, nav nm Carlisio's q