The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-12-20

compelled the banks to put up 30 cents
every time they issued 10 cents
hr' walker or Massachusetts ASKED
IL the Dill presented by Mr.. White wonld
secure Il safe and uniform currency.
W.T. VIII nave that tendency" said Mr..
That is not it," said Mr. Walker. 1--WE
uoh want to provide Il tendency toward
sue currency but actual safety"
am not Omnipotent." suggested Mr.
hlte. He added that in his Judgment
the bill would secure an elastic currency
! secretary Carlisle came at this point
M ana was an interested listener to Mr..
Z Nhlte answers to questions as TO the
want OF elasticity in Mr.. Carlisle's cur
rency bill.
! Mr.: Warner of New York asked what
TeStrlctlnoS should be placed upon the
banks.
Mr.. White said he would subject state
banks to the same regulations as those
imposed upon national banks.
MI. COX OF Tennessee asked if this
banks.
Mr.. White said that it would. He be-
lleved in one uniform banking system-not
tt systems, there being II states.
secretary Carlisle resumed his state
neht begun yesterday. He presented the
Dill he had prepared embodying his plan of
currency and read it to the committee,
commenting upon it as he proceeded.
When he had concluded reading the bill,
Mr.. Carlisle explained it in detail. He
pointed out the various sections of the
present law proposed to be repealed. Con-
Ccernlng the conditions imposed upon state
banks by his bill, he said that certain fea-
lures had been added to meet criticisms
made of the plan as outlined in the annual
report.
Mr.. BrOsiuS (Rep., Pa asked whether
1T was not desirable for the government to
assume the risk of redeeming rather than
leaving it to the banks
MIR. Carlisle answered the question
IN the negative. He said he did not be-
heve in government responsibility beyond
pr0yldlng the most ample safeguards.
Ihe secretary presented tables showing
the profits of national banks under the
proposed plan as compared with their
profits under the present law. 1t showed
additional profits and inducements would
incline national banks to circulation. In
the course of the general discussion Mr..
Carlisle said he did not think any imme-
date redemption of the United States
treasury notes was practicable. The sec
rotary spoke of Comptroller Eckles' plan.
Without wishing to discuss it, he thought
its fatal defect was in requiring national
banks to take out two different kinds of
circulating notes.
Mr.. Hall of Missouri asked the score
tary's opinion as to Mr.. Whites state
ment that the treasury plan lacked elias
ITCHY.
Mr.. Carlisle said there was no difference
between the plans as to amount of circu.
latiOn which could be taken out. The
shipments Of gold was discussed at much
length. Mr.. Carlisle said the loss of gold
was very heavy after the passage Of the
Sherman law. The loss of gold had
brought on financial distrust and had
threatened but there was no real danger.
The panics were largely the result of SEN
timcnt and public feeling instead of being
well based fears.
During II general discussion between
Mr.. Carlisle and members of the commit
tee the secretary referred to the issue of
bonds. He said that as much as he re-
GREETED it he saw no way of preventing
the further issue of bonds as long as the
present system remained
Mr.. White was again questioned after
the recess.
Mr.. Ellis QIy.) asked him If national
banks owuld consent to become guarantees
for the notes of all banks.
He said at the outset he doubted
whether national banks would adopt the
plan, but they would ultimately accept it.,
Mr.. Homer of Baltimore then addressed
the committee on the Baltimore plan. He
spoke of the requisite that a bank note
should be secure. The proposed plan I'M
dertooll to provide this requisite without
the aid of Il government bond. This was
ably secured by the proposed plan, so that
the system would be truly national, uni
form in all the states, instead of varying
in each of the A states. The Baltimore
plan gave this authority for redemption
to the government and secured the gov
eminent against loss, by q guaranty fund
and numerous safeguards. The govern
ment would not be called upon to meet
the losses of failed banks except so far as
the guarantee fund permitted. 1t would
be hardship under the treasury plan to
require II bank to advance 80 per cent
and then guarantee the redemption of
their notes. 1t was too much to ask of
one national bank to become responsible
for all other banks, in which it had no
direct connection.
Mr.. Walker of Massachusetts asserted
that the scheme" presented by Mr..
Holmes on behalf of the national banks
added confusion to the present confused
condition. Mr.. Walkers questions took Il
wide range, during which he Joined issues
with MI. Homer on IHe MERITS OIL MANY
features of the Baltimore plan.
The committee adjourned until 10 a. N.
tomorrow.
WHITES FINANCIAL BILL.
Washington, Dec. 1.-THE following
is Il synopsis of the bill presented to the
banking and currency committe by
Horace White:
The first section provides that no bank
ing association shall be required to de-
posit bonds either as preliminary to the
commencement of banking business or
the security of circulating notes to be
hereafter issued.
Section 2 provides that in lieu of the de-
posit of bonds each national banking as
sociation shall be entitled to receive cir
culating notes from the comptroller to the
amount of g. per cent of its paid up,
unimpaired capital. upon paying to the
treasurer of the lawful money to the
amount of per cent of such circulating
notes and thereafter q tax at the rate
of one-half of / per cent per annum
upon the average amount of it's circula-
tion for the year. The l per cent and
of the tax are to constitute a
Guarantee fund for the redemption OF
notes of insolvent banks and the tax is
TO be collected until the fund amounts to
not less than 5 per cent of the entire
issued. This fund is also to be
in addition of the 5 per cent redemption
fund now provided by law.
Section provides that III addition to
the amount of the circulating notes pro
Ided for, each association shall be EMU
Ill, lin