The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-12

Of July /. 1890 of a denomination o,
less than $40 shall be issued
Section 10 states that the banks duly
organized under the laws of any state
winch transact "a national banking
business, shall be exempt from any
axation regulating state banks.
Section IL provides that state banks
shall not issue notes similar in design
TO United States notes or certificates
or national bank notes.
Explained In Detail.
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 re-
pealed
Concerning the conditions imposed
upon state banks by his bill, he said
that certain features had been added
10 meet criticisms made of the plan as
outlined in the annual report
Mr.. Brossius (Repubfcan), Of Penn
syivanla. asked whether 1t was not de-
sirable for the government to assume
the risk OF redeeming notes rather than
leave it to the banks.
Mr.. Carlisle answered in the mega
i've. He said he I'D not believe in
government responsibility further than
IN providing the most ample safe
guards. The secretary showed. the
profits of national banks under the
proposed plan. as compared with their
profits under the present law. He
showed that additional profits and in
ducements would incline national
banks to take out circulation. IN the
course of the discussion Mr.. Carlisle
said he did not think any immediate
retirement OF the United States treas
ury notes was practicable. The sec
rotary spoks of Controller Eckels'
currency plan. Without wishing to
criticize he thought its fatal defect
was in requiring national banks to
take out two different kinds Of circula-
ton notes.
Shipments of Gold.
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 our gold had brought ON financial
distrust and had threatened panic But
there had been no real danger. These
panics were largely the result of SEN
stiment and public feeling instead of
WeH-based fears.
During a general discussion between
%fr. Carlisle and members of the COM
,nittee, the secretary referred to the is
suing of bonds. He said as much as he
regretted it, he saw no way of pre-
venting the further issue of bonds as
long as the present system remained.
Mr.. White was again questioned after
the recess.
Mr.. Ellis, of Kentucky, asked him if
national banks would consent to be-
come guaremtors for the notes of all
the banks. He said at the outset he
doubted whether national banks would
adopt this plan, but that they would
ultimately accept it.
Mr.. Homer, Of Baltimore, then adj
dressed the committee ON the Baiti-
more plan. He spoke of the requisite
that a bank note be secure. The pro-
posed plan undertook to provide this
requisite without the necessity OF a
government bond. Uniformity was an
other requisite of safe banking. 1t was
also secured by the proposed plan, so
that the system would be truly nation
al. Uniform in all states, instead OF
varying in each of the A states. He
urged that the confidence and safety
of the note holder was best secur, by
government redemption. The Baltil- ore
plan gave this authority for redemption
to the government and secured the gov
eminent against loss by a. guaranty
fund and numerous safe guards. The
government would not be called on to
meet the losses of failed banks except
so far as the guaranty fund permitted.
1t would be a hardship under the treas
ury plan to require a bank to advance
80 per cent. and then to 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 concern.
Mr.. Walker, of Mass, asserted the
Scheme presented by Mr.. Homer, in
behalf of the national banks carried
confusion to the present confused con-
dition. Mr.. Walkers questions took a
wide range during which he Joined is
sues with Mr.. Homer on the merits of
many features of the Baltimore plan.
The committee adjourned until to-
morrow