The times. (Owosso, Mich.) 1882-1897, 1894-12-28


tween Secretary Carlisle and Chairman
Springer. The substitute has already
been drawn and will be offered by Spring.
or before the holiday recess, as the desire
of all concerned is to get it before the
country prior to tho adjournment. 1t
differs materially from the original Car
Isle bill. The caucus of the banking and
currency committee Democrats was hell
ut the committee room, the following
members boing present: Springer, Cox,
Culbcrson Sperry, Warner, Cobb Of Ala.
bama, and Ellis The absentces were
Cobb of Missouri, Hall of Missouri, and
johnson of Ohio.
Carlisle Not Present.
1t was reported that Secretary Carlisle
was present, but this proves incorrect.
The discussion took wide range and the
sentiment was that the bill would have to
be materially changed in order to meet OBJ
jections and command support which
would securesits passage. The needed
amendments were formulated and when
the caucus adjourned 1t was not contem-
plated that the Carlisle bill should be
more than amended. 1t was arranged
that Mr.. Springer should sec Secretary
changes. When Secretary Carlisle and
Mr.. Springer met it was determined
that the better plan would be to frame
n new measure in the nature of sub
stitute instead of mutilating the original
bill with many amendments which went
to its vital principles
Substitute Agreed On.
Accordingly the substitute was agreed
on in full and as soon Us it can be copied
and put in proper bill form it will be'prc-
sentcd to the house, and thenccforth be
the bill on which the currency debate is to
proceed Two very important features
make their appearance for the first time
in the substitute. The main one will
have the effect of allowing the national
banking system to run along without an
arbitrary provision that banks must or
ganize under the new system. The orig
inal Carlisle bill contemplated that all
national banks must organize under the
new plan. This would have required
them to surrender the government bonds
which now constitute the basis OF their
circulation. But the substit ute does away
with this imperative change.
May Continue to DO So.
If national banks wish to continue to
circulation thereon they may do So 1t is
felt that they will soon discover the adj
vantagcs of the new system and will
therefore adopt it voluntarily. The other
important feature of tho substitute is
that it does away with the unknown liza
bility of the banks to guarantee the notes
of all other banks. This feature of the
original bill has been much criticised. 1t
contemplated that if nationcl bank
failed its notes would be paid out of its
assets and the general safety fund" made
up by all the banks. But if the assets
and safety fund were insufficient to pay
the notes Of the failed bank, then the
comptroller of the currency was to make
pro rata assessment Dn all the banks of
the country.
The safety Fund.
The banks said this prospective assess
mcnt Shoultkrcd them with an unknown
risk. In effect it made them supply in
surancc OH all the notes of banks in which
they had no concern. In view of these
criticisms the sab itituGs will do away with
the assessment plan. The salty fund.-
will bo the limit of the joint liability of
all the banks for The failure of individual
banks. They will, however, be compelled
to keep up this safety fund by more rigid
provisions than appeared i'll the original
bill Besides these two main chpgcs
there arc many lesser ones which were
summarized rs amendments in these re-
ports, but which will now DC incorporated
rs u part of the substitute