Waterbury evening Democrat., 1894-12-05
MIR. CARLISLE'S PLAN.
The Secretary of tho Treasury
 Explains the New Scheme.
THE DEMOCRATS ARE UNDECIDED.

The Senate Majority Holds Caucus, hut Were Divided as to the Advisabiiity oI Further Tariff Legislation and the Pro posed Adoption of n Closure Rule.
 WASHINGTON. Dee. 5.-Thc new bank ing scheme which Secretary Carlisle treats at length in his annual report, which has been presented to congress, Is being gen orally discussed today. It k the same financial plan which President Cleveland mentions in his message
 The secrctary of war says. in explaining the scheme:
 ''I have prepared the outlines of a plan which, in my opinion. will relieve the government to a great extent from tho burdens now imposed upon it, secure within n rasonahlc time a safe and elas- tic national and state hank currency and result ultimately in the permanent retirement of United States legal tender notes of both classes. It is in brief as follows:
 First-Rcpcal all laws requiring or authorizing the deposit of United States bonds as security for circulation.
 "Sccond-Permit national banks to is- sue notes to an amount not excecding 70 per centum of their paid up and unim- paired capital, but require each bank be- fore receiving notes to deposit n guaran- tee fund. consisting of United States lc- gal tender notes. including treasury notes of 1890. to the amount of 80 per centum upon the circulating notes applied for this percentage of deposits upon the cir culating outstanding to be maintained at all times. and whenever Il bank rctircs its circulation. in whole or in part, its guar antcc fund to bc returned to it in pro- portion to the amount of notes retired
 Third-Rctain the provisions of the law making stockholders individually lia- blc and provide that the circulating notes shall constitute u first lien upon all the assets of the hank.
 \ Tax Currency.
 'Fourth-ImpOse n tax of onc-half of ] per Ccntum per annum. payable semi annually, upon the average amount of notes in circulation to dcfray the expenses of printing notes. official supervision, can collation.. etc.
 "Fifth-\o national hank note to he of less denomination than Sl0 and all notes of the same denomination to be uniform | in design. but hanks desiring to redeem their notes in gold may have them made l payable in that coin. the secretary of the | trCasury 10 have authority to prcparc and keep on hand ready for issue upon appli- cation r'scrvc of national hank notes for each hInking association having cir culation.
 'sSixth-Rcquirc each national banking association To TNdccm its notes at it's own 1 office, or at its own office and at agencies 1 to bc designated by it.
 'Scvcnth-To provide n safety fund for the immediate redemption of the cirCu- lating notes of faiic,l hanks. impose u tax of - pcr cent per annum upon the aver agr circulation of each hank until the fund amounts to per cent of the total circulation outstanding. Require each l hank and each hank taking out addition 1 al circulat ion to deposit its proper propor- l ton Io this fund bs.forc rcIcivinL, notes. 1 When lsank fails. its guarantee fund 1 held on deposit tn bC paid into the safety fund and us,L in the rrtlcmption of ite notes
 If this fund shall be impaired by the redemption uf the notes of failed national | banks, and the immediately available cash l nsScts ot such hanks arc insufficient to re establish inc fund. il shall at once be made good by pro rata assessments upon | the other hanks. according to the amount | of their outstanding circulation, but there | shall be a first lien upon all the assets of l the failed bank or banks to reimburse the | contributing banks. The safety fund may be invested in outstanding United States bonds having the longest time to run | the bonds and the interest upon them to A4tAn IsiAl bA ItlllA hItll sDltt WlttIl | necessary to redeem notes of failed banks.
 "Eighth-Rcpcal the provisions of the | reorganization and extension act of July | 12, lSS2, imposing limitations upon the | reduction and increases of national hank circulation.
 "Ninth-Rcpcal all provisions of the law requiring hankS to keep n reserve on account of deposits.
 Tcnth--Thc secretary of tho treasury l fy, l.tz ion, .l.,- revenue of the United States in the re- dcmption and retirement of United States legal tender notes, but such rcdcmptions shall not in the aggrcgatc exceed an amount equal to 70 per cent of the addi- tional circulation taken out by national and state banks under the system herein proposed.
 When Bank Notes Shall Be Exempt.
 Notwithstanding notes issued by a hanking corporation, duly organized un. der the laws of any state and which trans. nets no other than n banking business, shall be exempt from taxation under the laws of the nited States when it is shown to the satisfaction of tn" sccrctary of the treasury and the comptroller of the cur rcncy: 1. That such hank has at no time had outstanding its circulating notes in excess of 15 per cent of its paid up and unimpaircd capital. ; That its stock holders arc individually liable for the re- dcmption of its circulating notes to the full extent of their ownership of stock. g That the circulating notes constitute by law first lien upon all the assots of the bank. l. That the bank has at all times kept Il guarantee fund in United Statcs legal tender notes, including treasury notc> of 1890, equal to 30 per cent of its out. standing circulating notes. ]. That 1t ha. promptly redeemed its notes on demand at its principal office, or at one or more oi , its branch offices, if it has branches.
 "Twclfth-Thc secretary of the treas ury may. under proper rules and regula tions to be established by him, permit stat, banks to procure and Use in the prcpara Hon of their notes the distinctive papci used in printing United States securities but no state hank shall print pr cngrav, its notes in similitudc of United State, note or certificate or national hank note 2
 Democratic Senators In Caucus.
 WASHINGTON. Dec 5.-Thc Dcmocrati
 the senate spent about three hours il
 tucus and then adjourned without talk rng action to meet again Thursday mex after the adjournment of the senate.
 The entire time was devoted to a dis cussion of the situation and to the wiscs course of action for the Democratic part, | during the present session of congress There were numerous speeches, but the! were generally devoid of features of espe l 'ial interest To quote the language O
 one who was pruS,.... A :,ost every neI
 ator present talked durin" the CaucIis, m
 each advocates his own hobby. This, "
 continued, "consumcd the entire tim
 and no opportunity was given for action.
 As n matter of fact, when the caucr
 adjourned there were not to exceed :
 members present, not enough to deciC
 upon course in way that would
 binding if those present had been so di