The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-12-05
CARLISLE HAS A PLAN
The Secretary Of tho Treasury Submits
II 10 Bis Report.
SAYS IT WILL HELP SILVER

Tho Present Financial system Of
the United States 10 Unsound
In Many Essential Re-
spscts So He Says.
WASHINGTON, Dec. A.-Tho annual re.
port OF tho secretary Of tho treasury was
sent to congress to-day. Il is o volumi.
nous document. The report deals largely
in statistics and with the recent bond
issue aud makes recommendation
which, In tho opinion of the secretary. will
improve the financial system OF tine gov.
crnment. He calls attention to tho IN.
ability of tho secretary, under tho existing
laws, to make adequate provision for tho
support Of the public credit. He says tho
well.known defects In tho financial sys-
tenn and the serious evils threatened have
done moro than all other things to check
the industrial and commercial progress of
this country.
The secretary says: "The only part Of
the currency possessing In any degree tho
quality Of elasticity 10 that issued by the
national banking associations, and 1t is
now generally coucsded that It has failed
to meet the requirements Of the situation
at some OF the most critical periods in the
business Affairs Of the country. Its fail.
ure IL credible, in my opinion, o three
principal causes. First, to the large vol.
umo Of United States currency OF various
kinds kept constantly outstanding, max.
ing contraction or expansion Of tho com.
psrativcly small national bank ci rcula.
ton loss effective than II would otherwise
have been; second, tho difficulty and de-
lay In producing. aud to some extent in
retiring circulation; thirdly, and mainly.
the provisions OF tho law which requires
the deposit OF United States bonds 10 Sc
cure the circulation and restrict tho issue
In notes to 80 per cent. of the par value of
tho bonds.
''In addition to the existing distractions
to prompt increase and decrease of the
circulation, the ninth section of the act
Of July. 1852. which provides for the ex.
tension OF the corporate existence Of ma.
tional banks, expressly prohibits them
from retiring their notes to . greater
amount than 5000, 900 in the aggregate
per month; advocates that no bank which
made deposit OF lawful money in order
to withdraw its circulation, shall be per.
mittsd to make any increase in its circu.
lation for period OF six months there
after. These provisions arc SO manifestly
In conflict with the dictates of sound policy
that they require no comment.
''In view of tho foregoing cousidera.
tions and many others that might be
urged in favor of tho reorganization and
reformation OF its paper currency system,
have prepared tho outlines OF o plan
which, in my opinion, will relieve the gov.
crnment to great extent from the bur.
dens now imposed upon II, secure within
tional and state bank currency. and re.
suit ultimately In the permanent retire.
ment Of United States legal tender notes
OF both classes"
Amoung the Recommendation made by
the secretary arc the following: The re.
peal Of all laws requiring. or authorizing
the deposit Of United States bonds 40
security for circulation; permit national
banks TO issue notes to an amount not
exceeding 70 per cent. Of tho pa id up aud
unimpaired capital, but require each
bank before receiving tho notes to de-
posit . guarantee fund, consisting Of
United States legal tender notes, includ.
ing M treasury no'cs ol io'o, 20 ,no amount
o1 " pc. co"'' up0u 'ne clscuIeung no'es
ou's'e"u'us, 70 " ms'aeA'neu ~ as'
',.ne.' anu w"e"oseE 'ue oanA rcoscs 's
e'rcsas''on !" w"o'e OF pset, "s guarantees
1unus 70 'o.urneu IN
propos''on 70 'ne emoun' Ok .ne no.es
Fet'reo; 70 P.ov'oe mS c,rcu'at'nS
noses snsl cons,Nu.e tue hrst nen upon
al tue asse's OF 'oe osnk impose TAX OF
one'nait OF ono per cen'' per annum' pay
oO'e semi'annua.y' upon tne average
amount OF no'ss IN circu.auon 70 dciSay
Tue expenses Oh prin.'ng tne ho'es' onicia'
SUPERVISORY cAncena"on' e'c.' no ma
tionai Dank nose 20 % OF less aenomins'
tson snan sio ana AL no'cs OF tue same
u0uom'us''o" 70 us uu'io'm sn ues!gn
put Tue oan.s oes.r'ne 70 ro"eem tneif
no.ec IN eo'u may nave 'nem maoe pay
ao'e IN tna. CONF 'ne secretary OF tue
treasury 70 nave au'nori'y 10 prepare ana
Keep on manu. resoy ior issue upon appii'
cations reserve OF nationai oahk notes,
tue no'es ior eacn osnk'ng ASSOCIATION
hav'nG chcuAs'ionS 70 P!ov'oe
saiev iuno tor 'ne immediate
reoemptIon OF tue circulating
notes OF Ioued oanksi impose .
TAX upon tue average circulation OF each
pank uutu the tuno amounts 70 D per cent
o. the total CIRCULATION outstandlngs tc