The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-18

sets Of said banks are not sufficient 70 re-
imburse it said fund shall be at once re. Re-
ot6er psts and sse
so assessed shall have a first lien on .ne
assets of each failed bank for the amount
poper S tb 10 of its
and these are all the provisions III tns oia. .
of how any one is to proceed and Mi.noue
how the notes of failed banks shall be re-
deemed. That is, on the face OF the al
Isle bill when bank fais , rs ssfasv f,,ni
Then the notes OF the failed bank are 70 De
paid out of the safety fund. Then an OF
the national banks in the country are 70
be assessed to make up the safety fund
and then all the national banks of the coun-
try are to put in Their claims Ems 10 10 'ne orsv a
they have paid on assessment for the pay
ment OF the notes of the failed bank. PROB
ably Secretary Carlisle intended to provide
that the guaranty fund of the failed bank
should be first expended in taking up the
currency notes of the failed bank and that
whatever additional sum was necessary
should be taken out of the safety fund
to complete their redemption, ana the SaIe-
ty fund should be replenished out OF the
assets of the bank, and If there was de-
ficiency in the assets. of the failed bank,
which was made up out OF the safety 1unu,
that all of the banks should be assessed 10
make good the safety fund.
Whatever legislation Is held with reIer-
ence to the finances of the country or pdnk,
ing in its effect on national banks shonld
national banks while their present charters
continue. To provide, as in Section Z, that
every national banking association hereto
fore organized and having bonds on deposit
10 secure circulation shall, on or DeIore tne
first day of July 1895. withdraw such bonds
and deposit with the Treasurer or the
United States a guaranty fund consisting
of United States legal-tender notes, lnciud-
ing treasury notes. cannot De 1ustined on on
any principle of safe legislation. Ii could
not fail TO produce panic. and the reck-
lessness of such legislation would startle
not only financiers in this country, Out IN
the world
.sThe provisions of exemptions TO State
banks Notwithstanding the many restrsc-
tons imposed on them, would drive every
out circulating notes into the state Dank
system if the bill were enacted. The taxa
ton of national bank notes is one-half per
cent per annurn in Section 3, and one-half
per cent per annum under Section D. max
Ing a total of / per cent. per annum. which
mum on the banks under the national sys-
tenn. which there Is no reason TO beEeve,
from any experience of the past, would De
imposed upon them under any State system
Furthermore, the States would be lar more
liberal than the United States VIII ever be,
or ought TO De. as regaros POM ponas OF an, any
may require the deposit of no bonds what
ever we cannot believe that 1t was the
intention OF the trainers of the Carlisle Dill
To make the conditions under which ma
tional banks should issue currency any
more onerous than those imposed or likely
lUDOSeQ
was the intention of Secretary Carlisle, or
of those who now enthusiastically support
the CarlLsie bill or will vote for 1t In Con-
gress, to force the national banks to op-
crate under State charters. and yet such
would be the inevitable effect of the BILL
The chairman. Mr.. Springer, presented
letter to the committee, read IL and pro-
posed to put IL in the record, approving
the Carlisle bill from a Western banker,
and when asked If he had other letters
from bankers concerning the bill, he re-
Piled: Yes, many-ffty-and when asked
If they all approved of the bill his reply
was: No. only this one
THE passage of the Carlisle bill may
meet some political exigency Of which We
do not know, but we do know that its
passage will aggravate rather than relieve
the perplexities of the financial situation,
and especially that of the United States
treasury. The United States legal-tender
notes withdrawn from circulation, did all
existing national banks take out all the
circulation permitted under the bill would
only be 5l,000.000, still leaving $35O,OO0 TO
vex the treasury. This would not afford
any substantial relief to the constant drain
of gold from the treasury. 1t would make
still more conspicuous, and thus more ur-
gent. the demand for gold upon the treas
ury and the notes issued under the bill
would make confusion worse confounded in
the currency by adding from one TO forty
five more kinds of money to those already
existing.
Twice within a short time has the House
declared its unalterable opposition TO al
lowing State banks TO issue currency notes,
once on June o, lcS-, Dy Note VI on ioi W
us against il. and again under the leader
ship against State banks of the gallant
and versatile gentleman from Illinois. the
Hon. William NJ. Springer, on June g.
1894, by a vote to repeal the 10 per cent
tax of 102 for to 172 against. Therefore,
we protest against again consuming the
time of the House in profitless discussion
of that objectionable section OF the Car
Isle bill.
'Finally, we are of the opinion that 1T
is not safe for the House to enter on the
line Of legislation proposed until some bill
is brought before it that has received far
more attention than the Carlisle bin, and
we recommend that it be indefinitely post
poned.''
The report is signed by the six Republican
members of the committee.