The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-13
OBJECTION TO CARLISLE PLAN,
The Senate Refuses to Take On the
Popgun Free Sugar Bill.
And Also Votes Against cfosurs. Thus
Making Republicans the Judge OF
Tariff observation-disclosures Tax Ap-
proprfssion Sure Co BE Pssssd.

loss Of gold was very heavy after the pas
sage Of the Sherman Law. The loss OF
our gold had brought on financial dIstrust
and had threatened panic. but there had
been no real danger. These panics were
largely the result OF sentiment and public
feeling, instead og well-based fears. Dur
ing general discussion between Mr.. Car
l4sle and members OF the committee. the
secretary referred 10 the Issuing Of bonds
He said that as much as he regretted il,
he saw no way OF preventing the further
issue OF bonds so long as the system re-
NAMED
The secretary submitted the btil TO carry
out his plan of currency reform In the
first section ali acts regulating the deposit
OF United States bonds TO secure the cir
culating notes Of national banks are re-
pealed- The second section provides for
issuing Of circulating notes 70 a national
bank equal to IS per cent OF the paid-up
and unimpaired capital, upon depositing
legal tender notes with the United States
equal to 50 per cent OF the circulating
notes applied for. These circulating notes
shall be in denominations Of SO and null
tiples OF so. and shall be uniform in de-
sign. Section levies duty OF IA per
cent. for each half year upon the average
amount OF a banks notes in circulation
Section provides for the mode OF redemp-
ton and retirement OF a banks clrcula-
ton. Section creates a safety fund for
ths prompt redemption of circulating
notes and failed national banks Each
bank shall pay 10 the United States trea-
surer. in the months OF January and July
In each year, q tax OF Ia per cent. for
each half year upon the average amount
OF Its circulating notes outstanding. until
the said fund amounts TO per cent. OF
the total amount OF national bank notes
outstanding. and thereafter said tax
shall cease. A bank retiring or reducing
It's circulation shall be entitled to with
draw any part of Its fund. The mode of
procedure In the case Of a banks failure
Is outlined Section allows the secretary
Of the treasury to invest money belonging z
10 the safety fund In United States bonds
Section provides that July /, 1899. ma
tional banks now having bonds on deposit
may withdraw them and substitute the 30
per cent guarantee fund Sectioe re-
peals previous acts conflicting with this
measure. Section provides that the sec
retary OF the treasury may I'm his discre-
ton redeem and retire United States legal
tender notes. that no United States or
treasury notes authorized by the act OF
July l. 1880. OF a denomination of less than
$40 shall be issued Section 10 states that
banks duly organized under the laws OF
any state. which transact a national bank
ing business. shall be exempt from any
taxation regulating state banks. Section
II provides that state banks shall not is
sue notes similar in design to the United
States notes or certificates or national
bank notes.
when ne had concluded reading the bill
Mr.. Carlisle explained IN detail He point
ed out the various sections OF the present
law proposed to be repealed. Concerning
the conditions imposed on state banks by
his bin. he said certain features had been
added 70 meet the criticisms made of the
plan as outlined IN the annual report
Mr. Brosds asked whether IL was not
desirable for the government TO assume
the risk OF redeening notes rather than
leave Il TO the banks. Mr. Carlisle an
swered IN the negative. He said he did
not behevs in government responsibility
further than In providing the most ample
safeguards. The secretary showed the
profits OF national banks under the pro
posed plan, as compared with their profits
under the present law. He showed that ad-
dltional profits and Inducements would In
cline national banks TO take out eircula-
ton Int the course OF the discussion, Mr.
Carlisle said he did not think any irnme-
date retirement Of the Unsted States
treasury notes was practicable.
The secretary spoke OF Comptroller Eek
els plan. without wishing 10 criticize. he
thought its fatal defect was In requiring
national banks TO take out two different
kinds OF circulating notes.
A letter from Lyman J. Gage. the prom
inent banker OF Chicago was read at the
opening OF the hearing by the house com
mlttee on banking and currency to-day.
Referring 20 the recommendations OF the
president and secretary OF the treasury.
Gage aid:
Agreeing with the criticisms OF these
officers OF the government as TO the pres
ent weakness % our situation ard the
great deslrability Of separating the gov
srnment from direct responsibility for
currency issues. ! ara persuaded that the
-@tt-A y tte.A A@r&+AF W sas9tFAfA A4as-aE
concentrations. ANY change or method
should Be 50 simple that al can oompre-
hend if. and IL should De seen thar its
Incidental effects would not be IN any
direction disturbing 20 trade. commerce
or Industry. I believe that the Baltimore
plan carries Tire frsse principles OF a cre~fff
currency. but We cannot reach 81 by one
step. and years may Intervene before u
can be realized Meantime the way for
TIRE government . step cut or the cur
rency business afgl place the burden of
redemption on the banks Is plain. Author
ize an issue o. 80 ri. 80 2l-a Per cent.
bends. payable az such tirne RS congress
usay elect. = years y desirable ~ be
offered . subscribers AT par. Accept in
payment United States legal tender notes
or treasury notes. ths sarne 70 be can
celled Amend tha nati0uai bank act 50
that banks can obtain note issues 20 tha
face value of sss bonds deposited as
security fov circulation. Resiuce the tax
- circulating notes 20 - per cent Tnss
done. the natHog@I bark E0tes woula
make Eood the vacuum caused ~ the
retirement of gold notes. In fact. th4rs
would Re some expAnstsu under &. 20 =.
followed 8ater by souze contraction
.Ares1ch forced rssleElptloa 81 bank issues
- f+ p. srs.e as some claim. thas TIE