The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-11

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WARRINGTON, D. G.. Dec. 10.-The
,,ineipal interest at the capitol to-day
,,utered In the room Of the com mittee
ol vays and means, where Secretary
Carlisle and Comptroller Eckles ap-
psared by invitation before the house
committee on banking and currency. to
explain and advocate the new banking
plan prepared by these two officials and
.udOned by the Presidents message.
The room was crowded with members
otthe house and intense interest was
manifested. Secretary Carlisle was ex.
Smjued and cross-examined by the
msmbers OF the committee. He had
tSs rough draft OF the bill in his posses.
ion. but in his examination it was con-
eludsd 70 revise it before submitting it
10 the committee.
Mr.. Carlisle and Mr.. Eckles differed
,umswbat "a to the details of the pro.
posed banking scheme but agreed upon
The principles to govern it, Mr.. Car
li,le will appear again on Wednesday.
Tomorrow Mr.. Hepburn, Mr.. Horace
White aud other New York bankers
will be heard.
Mr.. Carlisle said he was ready to an.
.ver questions from the committee, as
we'll as elaborate his own views. He
took up each section Of his recent recon-
mendations, namely: First, repeal
ali laws requiring or authorizing the de-
position Of United States bonds as
Iecuri,ies for circulation; and, second,
psrmit national banks to issue notes to
an account not exceeding rs per cent OF
their paid up and unimpaired capital,
bot require each bank before receiving
notes to deposit guarantee fund con-
listing Of United States legal tender
notes, Including treasury notes Of 1890,
10 the amount OF 80 per cent upon the
circulating notes applied for. This per-
cenlage Of deposits upon the circulating
notes outstanding to be maintained at
al times, and whenever bank retires
lie circulation, in whole or in part, its
guarantee fund to be returned to it in
proportion to the amount OF notes re-
tired"
DIFFERS FROM THE BALTIMORE PLAN.
Mr.. Carlisle said he was satisfied that
.hs present law requiring the deposit OF
bonds TO secure circulation prevented
the elasticity Of the currency. "The
provision outlined" he said, "gives
ample protection without the deposit OF
bonds as required by the present law"
The practical value Of reserve fund oil
currency was shown in '93. There was
ademand for money, aggregating S40,-
100000. The treasury did its best to
meet the striugency, but by the time
the notes were ready to distribute the
demand had gone by and many Of the
packages OF notes were returned un-
opened. The secretary invited criticism
Of this particular section. and Chair
man Springer asked how the secretary's
plan differed from tho Bal timore plan.
Nj. Carlisle explained that the Balti-
more plan proposed deposit OF so per
cent under certain conditions, while
the treasury plan proposed deposit OF
20 per cent. When bank fails the
treasury plan contemplated an assess
nent on all national banks, they in
turn having lien on the failed bank.
Representative Hall suggested that
there was a prevailing opinion that it
was unsafe to place the entire question
Of expanding the currency in the hands
oi corporations and banks. at will
Work automatically" said Mr.. Carlisle.
Banks will not expand the currency
unless the public need it. Their inter-
eat will be to expand and contract as the
common interests demand. These in
tefe'ts will therefore control at all
times. The secretary urged that this
ne&lbility was much more desirable
tnan rigid system by which fixed
amount OF currency was always out
stendinG At one time the stringency
was so great that tho banks drew out
$l3,0OOOOO under pressure, aud If it had
not been for the Canadian banks, which
sent currency into this country, serious
results might have ensued.
GOVERNMENT LTABILITY.
MI. Johnson, OF Indiana, asked if the
Baltimore plan did not contemplate
government liability. Mr.. Carlisle said
The ultimate liability was on the govern.
ment by the Baltimore plan and
on the banks by his plan. The banks
were compelled to keep the safety fund
always intact. AS fast rs depleted the
banks had to bring it up again. In
practical operation, the secretary said,
me reserve sum was always much lower
itan the law contemplated. a recent
investigation shows it was down to S.
Vo9,eV9 or S6,000,000, whoreas it wns
pitesumable much larger. The proposed
pan contemplates that the current re-
uemptlon, rs well as tho final redemp.
Ton, shall be mot by tho banks. Tho
uGiIy FCdomptioas now run into the
millions. This is not due to worn out
o. worthless currency. but the New
,lorE banks find themselves over
loaded. Thoy send national bank notes
70 Tho New \ ork sub-treasury and have
Inetn redeemed in United States notOs
of Other legal clRsSes oi currency. The
treasury then sends word TO tho national
pahEs 10 redeem these notes that tho
suD't'ensurles have taken in. II some
times takes the national banks two or
s,Lee sHLee months to take up their notes.
IL Fesults," said tho secretary, "in
L.eePinr a very largo sum suspended in
ue air. We have paid it out and will
eventually got it back, but in tho mean
"'ho the large sum is held M" Tho
1hi. sys,Orn.
:. Mr. Johnson askod II tho ultimaLo