The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-12-13

struction. he argued in support of the
proposition of a contemplated government
| ownership in the canal. England owned
stock in the Suez canal, and why should
not the United States own stock in the
Nicaraguan canal? Government owner
ship was the only means by which the gov
ernment could exert its influence over the
canal for the protection of its citizens, ex-
cept by force. The canal must be built un-
der the fostering of some government. To
abandon it now was an impossibility, he
was willing to assume, and deClinaton
the people would not forget.
At the conclusion of Mr. Morgan's
speech, Mr.. Mitchell of Oregon briefly ex-
pressed his hearty approval of the scheme
to build the canal, and said he thought
there was no great difference among the
people regarding the work of construc
ton.
The senate then, at 4:10 p. M, ad-
journed.
CARLISLE'S FINANCIAL SYSTEM.
Washington, Dec. 10.-The principal
interest at the capitol today centered in
the room of the committe of ways and
means, where Secretary Carlisle and
Comptroller Eckles appeared by invitation
before the house comittee on banking and
currency to explain and advocate the new
banking plan prepared by those two of
ticialS and endorsed by the presidents
message. The room was crowded with
members of the house and intense in
terest was manifested. Secretary Car
Isle was examined and croSs-eXamined
by the members of the comittec. He had
the rough draft of the bill in his posses
sion, but after his examination it was
concluded to revise it before submitting
it to the committee. Mr.. Carlisle and Mr..
Eckles differ somewhat as to the details
of the proposed banking scheme, but
agree upon the principles to govern it.
Mr.. Carlisle will appear again on We'd
nesday. Tomorrow Mr.. Hepburn, Hor
ace White and other bankers will be
heard.
Mr.. johnson Qnd.) asked if the Balti-
more plan did not contemplate govern
ment liabilities.
Mr.. Carlisle said that the ultimate
liability was in the government by the
Baltimore plan and in the banks by his
plan.
Mr.. johnson asked if the ultimate
liability of the government would inspire
more confidence in the currency.
The secretary said it undoubtedly would
but that his plan would insure ample pro-
lection and therefore ample confidence.
He explained that in case of the failure
of bank its 80 per cent goes in the gen
safety fund and the assets of the failed
bank are not sufficient to meet all labii
ties without carrying the general safety
fund below the > per cent, then all the
banks are to he assessed TO meet the lia
bilities The banks then have lien on
the assets of the failed bank.
Concerning the state bank feature of
he plan, Secretary Carlisle said: 1T sug-
gests merely plan by which banks could
act if they saw fit. But the government
has no direct concern with state institu-
tions. The plan gives them the privilege
of acting under certain conditions if they
see fit"
The secretary then took up the prOpo-
sition that no national bank note be of
less denomination than $40. 1t would
encourage the circulation of silver GER
titicates of smaller denomination. These
certificates were not crowded into the
treasury.
Mr.. Sperry asked if silver certificates
were redeemed in gold.
NO" said the secretary, there are
only two classes of notes redeemed in
gold, viz: The greenback and the trea-
sury notes under the Sherman act of 1890.
Concerning the Ninth proposition, to
''repeal all provisions of the law requiring
banks to keep reserve on account of de-
posits the secretary said: 1.-The present
law keeps q bank from using its reserve
at a time when it needs it most"
Mr.. Cobb (Ala.) asked: 'Do you hold
that the government owes no obligations
to depOsitors?
"No more" said the secretary, than
it is obligated to protect private citizens
who invest their funds i'll manufacturing
concerns, corporations, etc"
When the committee reconvened, Comp
troller Eckles appeared before the COM