The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-12-19

His plan OF
TO Questions From Members CT the Com
mi:.ee.
WASHINGTON, Dec. i0.-Stanttlng at
the foot of the long table in the ways
and means committee room OF the
House this morning, Secretary Carlisle
explained in detail 70 the banking and
currency committee the plan recon-
mendeG by him for the new banking
law.
All Of the seventeen membess Of the
committee except iour-B(ack of Hi
nois. BrosiuS OF Pennsylvania, Haugh-
en- OF Wisconsin and Elias of Ken
lucky. were in their seats as earl Y as
10 o'clock, the hour for which the
hearing was called. CulberSon Of
Texas, who had been detained at home
by reason of illness III his family. hur-
ried to Washington to attend today S
meeting
The hearing attracted large mum
Der of req .esentatives ii addition to
the members theconmittce. Among
those present were Wilson of " cSt
Virginia, Hooker of New York. Snod-
grass of Kentucky. Turner OF Georgia,
]. X. Cowen Of Baltimore, member
elect of the next Congress and Senor
Remcre. the Mexican minister.
When the committee was called to
order Secretary Carlisle was asked by
Chairman Springer to explain what
would be the practical workings of bis
currency plan. In answer, Mr.. Car
Isle said that he had come to answer
questions of the committee and to
make a statement of his plan. but not
to indulge in a general argument, as
that had been done already IN his an
nual report.
Proceeding to take up his sugges-
tons seriatim. as they appeared in his
report, Mr.. Carlisle read the first two,
as follows:
Il. Repeal all laws requiring or au-
thorizing the deposit of United States
bonds as security for circulation.
''2. Permit national banks to issue
notes to al amount not exceeding %
per cent. of their paid up and unlm-
paired capital; require each bank be-
fore receiving notes to deposit q guar
antee fund consisting OF United States
legal tender notes, including treasury
notes of 1890. to the amount Of 80 per
cent. of the circulating notes applied
for-this percentage of deposits upon
circulating notes outstanding to be
maintained at all times and Whenever
bank. retires its circulation, in whole
or in mart IFS guarantee fund to be re-
turned to it in proportion to the
amount of notes received.
In explanation Mr. Carlisle SAID 1t
had come to be ganerally believed that
that provision of the law requiring the
deposit of United States bonds as Sc
curity for circulation was a failure.
He believed it prevented elasticity OF
the currency.
Passing without further comment to
the second suggestions, Mr. Carlisle
said he believed that this provision
was perfectly safe in guaranteeing Sc
curity to depositors The treasury re
serve, he thought, should not exceed
more than one-half of the outstanding
circulation of national banks.
Mr.. Springer asked Mr., Carlisle to
explain the difference between his
plan for retiring circulation and that
of the Baltimore bankers; and the
Secretary gave brief sketch Of each.
The Baltimore plan provided for cir
culation up to 50 per cent. Of the capl-
tai stock of banks without any deposit
whatever, but subject to O. tax fund
raised freesIs;e eesIss;e which was to be used IN
relieving funds of failed national
banks. If this does not become large
enough, the government IS to reheve
the fund, looking to the banks for re
payment. The government plan was
that a separate fund of 80 per cent. of
the circulation should be held for each
bank, and in addition there should be
safety fund, raised like that of the
Baltimore plan but if this fund should
not prove large enough, the Treasury
Department might assess national
banks pro rata on their circulation.
TIE government, through this means,
could lose nothing.
In further explanation Mr. Carlisle
said that the banks by his plan are
called upon to keep the safety fund
intact; in the Baltim ore plan the gov
ernment was required to do this. My
plan, said the Secretary, requires the
national banking system to support It
self entirely, and relieves the govern
ment of all connection with the sys-
TEN, except to furnish notes and hold
the safety fund.
Mr.. Carlisle said his plan did away
with the present system of redemption
of national bank notes. At present
national banks could send their mutt
lated notes to the treasury ana receive
in turn new notes BY the new plan
the government was divorced entirely
from the redemption of these national
bank notes. The government was re-
ieved of all responsibility in the mat
ter.
In answer to Mr.. johnson of India
ma, Mr.. Carlisle SAID that the idea of
the plan was that the strongest banks
should carry the weaker. If bank
failed so badly that it could not pay
its notes, the ultimate liability was
placed, by the Baltimore plan, on the
government. By plan proposed by
himself the ultimate liability was
placed on the banks.
Mr.. johnson wanted to know if Mr.
Carlisle throught the banks would
agree to this. The secretary answered
that the banks must Speak for them
selves: he was looking out for the in
terests of the government.
To Mr.. johnson Dem, Ohio,) Mr..
Carlisle said that one great advantage
of his plan was that it would furnish
elastic currency. The entire national
bank deposit would not be filed up to
the limit of the plan unless the basi-
ness of the country required it. I'm
der the present system, If a national
bank desire to retire its circulation 1t
must send to the treasury lawful mon
ey of the United States, or the requisite
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