Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1894-12-26
MAKES A CHANGE.
Mr.. Springer Presents Substitute
for the Carlisle Bill.
Material Changes from the Original Meas
ure-Under the New Plan One Prin-
cipaI Objection by National
Banks Is Removed.

| WASHINGTON, Dec. 22-Mr. Springer
(dem., III. at late hour Friday after
noon, laid before the house a substi-
tute for the pending currency bill. 1t
consists of the amendments which
have been agreed upon by the demo-
cratic members of the committee;
others that were suggested by Secre-
tary Carlisle, the author of the bill
that has been under consideration all
the week, as well as certain features
of the Carlisle bill which it has been
deemed advisable to retain. After
laying the substitute before the house,
Mr.. Springer briefly explained the i'm
portant changes made in the Carlisle
bill and their effect as follows:
Provisions of the New Bill.
| 1. Permitting the deposit of currency GER
| ttfcates issued under section 5,19S of revised
| statutes, to secure circulation as we'll as the
deposits of legal tender notes and treasury
notes. These certificates represent legal ten
der notes actually held in the treasury, and
the effect OF depositing certificates is, there
fore, the same precisely as to require the de-
poSit Of notes
So amending the present law as to permit
state banks to deposit legal tender notes and
procure these currency certificates In the same
manner that national banks are now permitted
to do.
g. Disper sing with the provision which au-
thoriZes an assessment upon the national
banks to replenish the safety fund for the re-
demption of the notes of failed banks, and, in
place of this provision, insert one providing
that the collection of the one-fourth of cent
tax for each half year shall be resumed when
the safety fund is impaired and continued I'M
til the safety fund is restored.
Authorizing the comptroller Of the curren-
cy instead Of the banks themselves to deSig-
nate the agencies at which national bank notes
shall be redeemed. The effect Of this will be
to secure the redemption not only at the Office
of the bank, but at other places accessible to
note holders.
5. Dispense with the provisions compelling
existing national banks to withdraw their
bonds now on deposit and take out circulation
under the new system, and in lieu of that pro-
vision insert one permitting the banks to with
draw their bonds, if they see proper to do So
by depositing lawful money, as now provided
by law, and then to take out circulation under
the new system if they choCSe to do So
4. Providing that the notes of failed nation
al banks which are not redeemed on demand
at the Office of the treasurer of the United
States, or any assistant treasurer of the
United States shall bear interest at the rate
Of per cent Per annum from the date Of the
suspension of the bank until thirty days after
hand for their redemption.
No Obligation on the Government.
This imposes no obligation upon the part of
the United States to use its own funds for the
redemptions as the safety fund is in the hands
of the treasurer, and he will redeem notes out
of that fund
Important Changes Made. !
Two very important features make
their appearance for the first time in
the substitute. The main one will
have the effct of allowing the nation
al banking system to run along, with
out an arbitrary provision that banks
must organize under the new system.
If national banks wish to contine
to hold their United States bonds and
issue Giro ulation thereon they may do
SO. 1t is felt that they will soon dis
cover the advantages of the new sys-
tenn and will therefore adopt it volun-
tarily.
The other important feature of the
substitute is that it does away with
the unknown liability of banks to
guarantee the notes of all other
banks. This feature of the original |
bill has been much criticised. 1t !
contemplated that if a national |
bank failed its notes would be |
paid out of it's assets and !
the general safety fund.-" made up
by all the banks. But if the assets
and safety fund were insufficient to
pay the notes of the failed bank, then
the comptroller of the currency was to
make pro rata assessment on all the
banks of the country.