The daily morning journal and courier., 1894-12-18
IT WILL LEAD TO A PANIC.
REPUBLIcAN MEMBERS REPORT ON
 THE CARLIsLE DILL.


 Party Majority of the Comm tee Was
 Most Extraordinary--s-ctlon. of tho
 Bill Arc sharply ritioisod.
 Washington. Dec. 17.--The report of the republican members Of the house banking and currency committee on the Carlisle banking bill begins with the statement that the signers most heartily and enthusiastically join with the democratic majority of tie commit tee in repudiating the measure"
 The report states that the whole action of the party majority of the committee was most extraordinary and not approved by its voting majority. The bill was only read in thu committee in part on one occasion, and an oppor- tunity to consider or amend 1t was re- fused both to the democratic and re- publican members. The report says thlat 1t Is the opinion of number of the most clear-headed and eminent n- nanciers in the country that If the Car lisle bill is enacted into a law 1t will within twenty days precipitate panic far more severe than that of 1S93 as it would compel the forced sale upon the market of nearly $2OO, 100000 worth of United States bonds within six months.
 "Tfis haste to. report the bill is all the more irexplicable," the report adds, when it is remembered that Secretary Carlisle testified that this bill which he had drafted himself for the relief of the treasury would. not in any event relieve 1t materially for five years and might not for twenty years"
 The report calls attention to certain sections of the bill and sharply criti- cises them. The shortcomings of the bill, from the minority standpoint, are accounted for by the probable haste with which the bill was drawn, as Sec retary Carlisle informed the committee that he had dictated it hastily to his stenographer, when it Is the opinion of many that there Is not man in the country who can draw any bill to ac- complish what tEe secretary has at- tempted without" spending nearer month than "a week in studying the !ar-reaching effects of it's provisions, in order to make it safe to enter upon legislation of such magnitude"
 Whatever egislakion," the report continues, 'is had with reference to the finances of tta, country pr banking In, it's effects upon national banks, should be permissive and not naifMatory, as to national banks while their present char ters continue. To provide. as in sec ton that every national banking as- iociation heretofore organized and hav- ing bonds on deposit to secure circula- ton shall on or before the first day of July, 1895, withdraw such bonds and deposit with tre treasurer of the United States a guaranty fund consisting of United States legal tender notes, in- cluding treasury notes,' cannot be jus tified upon any principle of safe legis- lation. It could not fail to produce panic, and the recklessness of such ,legislation would startle not only finan- ciers in this country, but also those of the world"
 In the opinion of the minority, the provisions of exemption as to state banks would drive every existing na- tional bank that desires to take out circulating notes into the state bank system. The taxing of national banks would amount to $5,0O0,O0O annually un- der the present bill, which there no reason to believe would be imposed upon them under the state system. Fur thermore the states, even the most con- servatiye among them, would be far more liberal than the United States as regards bonds, or any other security or redemption funds, for they may re- orire the deposit of no bonds what ever"
 The minority cannot believe that it was the intention of the framers or the bill to discriminate in favor or state banks or to force the national banks to operate under state charters. Yet such, in their opinion, would be the inevitable effect of the bill. The re- port directs attention to the fact that many oe the eminent financiers who anneared before the committee objected seriously to the bill, and those who did not repudiate many of the sections upon cross examination. It asserts that scores of eminent financiers would gladly have appeared and spoken against the bill. and says:
 "The chairman, MT. Springer, pre- scented A letter to the committee, read 1t and proposed to put it in the record. approving the Carlisle bill, from western banker, and when asked if he had other letters from bankers concern ing the bill, replied, yes, many, fifty, and when asked if they all approved of the bill, his reply was, No; only this one.'"
 Continuing, the minority say: The passage of the Carlisle bill may meet some political exigency of which we do not know, but we do know that its pas sage will aggravate rather than relieve the perplexities of the financial situa- tion, and especially that of the United States treasury. The United States le- gal tender notes withdrawn from cir culation, did all existing national banks take out all their circulation permitted under the bill, would only be $151 ,0O0, 900, leaving $35O, 100000 to vex the treasury. This would not afford any substantial relief to the constant drain of gold from the treasury. It would make still more conspicuous and thus more urgent the