Birmingham age-herald., 1894-12-11
Before the Banking and Currency
 Committee
EXPLAINS IN DETAIL A PLAN
Suggested in His Report for a Revision of the Bank
 ing Law.

WAsHISeToN, Dec. 10.-Standing at the foot of long table in the ways and means committee room of the house this morn- ing, Secretary Carlisle explained in detail 10 the banking and currency committee the plan recommended by him for a new banking law. All of the seven teen mem- bers of the committee except four-Messrs. Black of Illinois, Brosius Of Pen nsylvania, Haughen of Wisconsin and Ellis of Ken tucky-were in their seats as early as 1 o'clock, the hour at which the hearing was called. Mir. Culberson of Texas, who had been detained at home by reason of illness in his family, hurried to Washing ton 10 attend today's meeting.
 The hearing attracted large number of representatives, In addition to the me mbers ot the committee. Among those present were Messrs. Wilson of West Virginia, Hooker of New York, Snodgrass of Ken lucky, Turner of Georgia and J c. Comen of Baltimore. Several members. elect of the next congress and Senor Romero, Mexican minister, were also in attendance. When the committee was called to order Secretary Carlisle was asked by Chairman Springer to explain what would be the practical working of his currency plan. In answer MT. Carlisle said he had come to answer the questions of the committee and to make a statement of his plaa, but not to 6 been done already in his annual report.
 Proceeding to take up his suggestions seriatim as they appeared h his report, MT. Carlisle read the first two as follows:
 1. Repeal all laws requiring or author izng u deposit oi United States bonds as security for circuiaaon.
 2. Permit national banks to issue notes to an amount not exceeding 70 per cent oi their paid up and unimpaired capital, but require each bank, before receiving notes, tn n on nnta tinp af United States legal tender notes, including the treasury notes oi 1890, to the amount Of 30 per celt upon the circulating notes ap- piled for. This percentage of deposit upon circulating notes outstanding is to be maintained at all times, and whenever the bank retires it's circulation, in whole or part, it's guarantee fund is to be return ed to ii Tn proportion 10 the amount of notes retired. t.4.94.=@
 In explanation Mir. Carlisle said it had come to be almost generally believed that that provision of the law requiring de- posit of United States bonds as security for circulation was failure. He believed it prevented elasticity Of currency.
 Passing without further comment to the second suggestion, MT. Carlisle said he be- lieved that this provision was perfectly safe in guaranteeing surety to depositors. The treasury reserve, he thought, should not exceed more than one half of the outstand- ing circulation of national banks.
 
 plain the difference between his plan for retiring circulation aud that of the BaIti- more bankers, and the secretary gave brief sketch of each. The Baltimore plan, he said, provided for circulation up to 50 per cent of the capital stock of the banks, without any deposit whatever, but subject to tax, with fund raised which was 10 be used D relieving the funds of failed na- tional banks. II this does not become large enough the government is 10 relieve the Nk.x ,lraf
 The government plan was that separate fund of 30 per cent of circulation should be held for each bank and in addition there should be safety fund raised like that of the Baltimore plan; but if this fund should not prove large enough the treasury de- pertinent might assess the national banks pro rata on circulation. The governmen [, through this means, could lose nothing.
 In further explanation Carlisle said that the banks by his plan are called upon to keep the safety fund intact; in the BaIti-s more plan the govern ment was required to do this. My plan,o said the Seer. tary, "requres the national banking system 10 support itself entirely, and relieves the government of all connection with the sys- tenn except to furnish the notes and hold safety fund.-
 Carlisle said his plan did away with the present system of redemption of national bank notes At present the national banks could send their mutilated notes to the treasury and receive in return. new notes. By the new plan the government was di- vorced entirely from the redem ption of these national bank notes. The govern- ment WAS relieved of all responsibility in the matter.
 In answer to Mir. Johnston of Indiana MT. Carlisle said that the idea of the plan was that the stronger banks should carry the weaker. If a bank failed 80 badly that it could not pay it's notes the ultimate lia- biity was placed by the Baltimore plan un himself the ultimate liability was placed on the banks. Mr. Johnston wanted to know if MT. Carlisle thought the banks would agree to this, and the secretary answered that the banks must speak for themselves; he was looking out for the interest of the government.
 h the sunny south Dr. Price's Cream