The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-12-10
its circulation today and increase

Mr.. Walker (Rep., Mass) wanted TO
know whether Mr.. Carlisle had drawn
bill embodying his views.
, Mr.. Carlisle sand he mad a sketcn
of such a measure, and he promised TO
furnish the committee with complete
bill as soon as he had perfected the
draft he had dictated.
A VERY SMALL TAX.
Continuing his explanation of the pro-
visions of his plan, seriatim, Mr.. Car
Isle took up the fourth suggestion, pro-
viding for the imposition of tax OF one
half of one per cent. per annum, payable
semi-annually, upon the average amount
of notes in circulation to defray the ex-
penses of printing notes, official super
vision, etc. He explained this in few
words, and passed on to the fifth sug-
gestion, as follows:-
mo national bank note to be of less
denomination than ten dollars. and all
notes of the same denomination to be
uniform in design; but banks desiring
to redeem their notes in gold may have
them made payable in that coin. The
Secretary of the Treasury to have au-
thority to prepare and keep on hand
ready for issue upon application a re-
serve of blank national bank notes for
each banking association having cir
culation.'
Mr.. Carlisle said this suggestion would
have the effect of placing the silver GER
tificates of small denomination in circu-
lation The idea was not to issue Ma
ton bank notes of less denominations
than $40. This would force the people to
call for the silver certificates which We're
now piled up in the Treasury. The sill
yer certificates were, of course. redeem
able in silver dollars He believed that
the due notes issued under the new sys-
TEN would be kept on parity with gold.
SILVER OR GOLD.
To Mr.. Sperry Oem Comm Mr.. Car
lisle said his plan contemplated the ulti-
mate retirement of greenbacks and notes
issued under the Sherman law, and there
would then be no other paper of the
Government redeemable in gold.
I'VE should then be on silver basis
said Mr.. Sperry.
mo" said Mr. Carlisle, ION gold
basis
Mr.. Sperry also wanted to know if,
should the time ever come when there
was no paper of the Government re-
deemable in gold, the debts of the Gov
6fnnlpnl
this Mr. Carlisle said that there would
not be enough silver to do this. Further
more, the debts of the Government We're
paid in large bills. The silver was need
ed for small coin. Subsidiary coin was
piled up in the banks by tradesmen
The banks could not pay it out and
therefore sent it to Washington for re-
demption in notes of large denomina-
tions. The Treasury Department found
considerable difficulty in getting this
money into circulation again, and the
Secretary thought there would therefore
be no great demand for silver in pay
ment of Government debts.
Mr. Carlisle, in answer to several ques-
tions, said he held that the Government
was not, legally speaking, under greater
obligations to take care of the depositors
than it was to stockholders of corpora
tions, manufacturing organizations, etc.
NO RIGHT TO TAX.
Skipping to his eleventh suggestion,
as outlined in his report, Mr.. Carlisle
gave some explanation of it. The Mea
suggested dealt with exempting State
banks from national taxation under GER
tain conditions. given by the Secretary
in his report as follows
Circulating notes issued by a banking
corporation, duly organized under the
laws of any State and which transacts
no other than banking business, shall
be exempt from taxation under the laws
of the United States, when it is shown to
the satisfaction of the Secretary of the
Treasury and the controller of the cur
reney:-
a. That such bank has at no tue had
outstanding its circulation notes>in excess
of seventy-five per centum of its paid
up and unimpaired capital
e. That stockholders are individually
liable for the redemption of it's circu-
lating notes to the full extent of their
ownership or stock.
81 That the circulating notes consti-
tute, by law, first lien upon all the
assets of the bank.
a. That the bank has at all times
kept a guarantee fund in United States
legal tender notes, including Treasury
notes of 1890, equal to thirty per centum
of its outstanding circulating notes; and
% That it has promptly redeemed
notes on demand at its principal office,
or at one or more of it's branch offices,
if it has branches
Mr.. Carlisle, in explanation, said that
theoretically he believed that the gov
ernment had no right to tax State banks
although the Supreme Court had held
that it was perfectly legal He thought
that it might be a good thing, however
to retain the tax, but it was the inten-
tion of the plan suggested by him to
lessen governmental interferences with
these banks as far as possible.