Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1894-12-21
BRATTLEBORO, FRIDAY, DECEMBER 21 1894
Currency Reform.
The Administration Bill Reported to
the HOuse---SOme of Its PrOvisiOns---
The Diminishing Cold Reserve---Why
MIR. Carlisle Is Anxious for Action.

the House---Some of Its ProvIsions---
The Diminishing Gold Reserve---Why
Mr. Carlisle Is Anxious for Action.
Mr.. Springer of Illinois, the chairman of
the House committee on banking and the
currency, reported to the House, Monday,
Mr. Carlisle's bill embodying a plan for
the reform of the currency system of the
country, accompanied by an elaborate ma
jority report in support of the measure,
which is now before Congress and under
discussion in the House. A minority re-
port was also submitted. The report sub
mitted by the majority says that the bill
does not require the deposit of bonds of
the United States or of any other interest
bearing obligation, but in lieu of such Sc
curity provides for guarantee fund equal
to 30 per cent of the circulating notes ap-
piled for, and a safety fund, which will
amount when it reaches its maximum to
per cent upon the total amount of national
bank notes outstanding These guarantee
and safety funds are for the protection of
the circulation of any bank which fails. In
case these funds and the assets of the failed
of such bank, pro rata assessment upon
all the other banking associations, accord
ing to the amount of their outstanding cir
culation, is to be made by the treasury de-
partment, and the banks so assessed shall
have first lien upon the assets of each
failed bank for the amount properly charge
able to such bank on account of the re-
demption of its circulation.
The committee quote statistics to dem
onstrate that if the proposed bill had been
in force during the crisis of 1898, and all
of the banks had taken out circulation to
the maximum amount allowed by law, the
guarantee and safety funds would have
been ample for the payment of the entire
circulation of the outstanding notes of the
lbs banks which suspended payment, and
would have left surplus of over S11 900,
GOO still in the safety fund, without the ne
cessity of making any assessment on the
resources of the other national banks.
The report contends that if the provisions
of the bill relating to state banks is OBJ
served it will throw around the state bank
circulation the most essential safeguards
which are provided for the national cur
rency If they are not observed, the ten
per cent tax will be imposed and the notes
will be suppressed The majority submit
ting this report state that they are not
agreed to all the provisions of the bill, and
they reserve the right to offer any amend
ments
The Republican minority of the commit
tee, joined by two Democrats, make a
strong point of the fact that the majority
do not favor the bill they agreed to report,
and then condemn the haste exhibited in
framing this bill, and allege it to be ''the
opinion of a number of the most clear
headed and eminent financiers in the coun-
try that, if the Carlisle bill is enacted into
law, it will, within twenty days, precipi
tate panic far more severe than that of
1898, as it would compel the forced sale
upon the market of nearly 5000, 100000
worth of United States bonds within six
months
The majority of the banking and cur
rency committee, inspired by the urgent
wish of Mr. Carlisle, were anxious to push
this bill through the House before the hol-
day recess, but it was found that a majority
of the Democrats and the Republican mi
nority would not allow such precipitate ac-
tion to be taken on measure of this i'm
porlance. 1t may eventually go through
the House, but will meet defeat or extern
sive amendment in the Senate.
Mr.. Carlisle's anxiety to have the bill
rairoaded through is due to the constant
use of legal tenders as a means of with
drawing gold from the national treasury.
Not day has passed in December without
heavy redemptions of greenbacks at the
sub-treasuries, the aggregate already ex-
ceeding S20,000,000. Last Saturday the
gold reserve of SlOOOO0,OOO, which was
made intact once more by the recent bond
issue, with few millions to spare, was
again invaded blythe demand for gold for
shipment abroad. The withdrawal of gold
has steadily continued, and the reserve has
already sunk to about S90,000,000.