The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1894-12-29
A COMPLICATED SCHEME.
Secretary carlisle's Plan for Currency
Reform.

~RoAafJ Nnrheic's Ran Tor Currency
Reform.
The chief features of Secretary Car
isles highly complicated and involved
scheme of currency reform may be out
lined thus: 1t allows national banks
TO issue circulating notes TO an amount
equal TO seventy-hve per cent. OF their
paid up and unimpaired capital.
upon guarantee fund of green
backs or Sherman currency equaling
thirty per cent OF the circulation,
these notes to constitute a first lien
on all the assets Of the banks Two
taxes are TO be imposed by the govern
ment on each bank--one of half Of one
per cent. per year. payable half year
ly, on its average circulation, 20 pay
for printing OF notes. official super
vision and like expenses. and the other
tax, which is also on circulation. but
of a rate not stated. is 20 provide a
safety fund for note redemption, the
tax TO cease when the fund reaches
i've per cent. OF the circulation out
standing. Each bank is 10 redeem its
own notes. When n bank fails, the
guarantee fund Is TO be added TO the
ton. but II this is not sufficient, pro
rata assessments on the basis of circu-
lation on the other banks for the sum
required will be made, the contribut-
ing banks 20 hold a first lien for the
amount on the assets OF the wrecked
bank.
This Is the part OF the scheme which
relates TO national banks Another
feature OF 10 permits state banks TO
issue circulation on nearly the same
terms as the national banks after COM
plying with somewhat similar require
ments, their notes 20 be exempt from
the national tax which was imposed on
state bank circulation thirty years
ago. All notes OF the same denomina-
ton under the national plan are 20 be
similar in appearance, but state bank
notes are to be different in looks both
from the national bank currency and
from the greenbacks and Sherman
notes Another feature Of the system
provides for the redemption and re-
tircment OF greenbaclSs and sherman
notes at the discretion OF the secre-
tEry OF the treasury, the surplus rev.
enue, when there is my, being used
for that purpose, the retired notes not
TO exceed 40 per cent OF the new cir
culation, national and state. provided
by this scheme. The state bank notes
are. OF course. designed 20 furnish tho
''local currency" which the enemies of
the national banking system have been
for SO many years demanding.
1t Is easy 20 see that the country will
not take kindly 20 the Carlisle scheme.
In providing two new sorts OF money
IL makes n needless addition to our al
ready embarrassingly variegated and
diversified circulating medium. One
kind OF new currency, 10 be sure, we
must have. for the government bond
deposit feature will necessarily have
20 be absent from that form of circula.
ton, whatever il may be. which will
soon have to be devised TO supplement-
aud succeed the national bank cur
rency Two new sorts OF circulation,
however, is rather more than the coun-
try desires at present The absence,
too, OF direct governmental liability
for circulation will arouse prejudice
against H. Perhaps the safeguards
SURF ounding tho circulation might in
actual operation turn out TO be ample,
but there will be a popular suspicion
that the scheme is weak in this par
ticular, and this feeling Is likely To be
fatal TO all chances of its adoption. In
regard 20 the state bank feature OF the
scheme, tho wildcat currency advo-
Gates viii think the secretary does not
gonnywhere near far enough in his con-
ccssions TO them, while all the rest OF
the country viii think he goes too far.
The proposition Is ON the lines laid
| down in the so-called Baltimore cur-
rency plan 10 the extent that IL bascn
circulation on bank capital instead OF
on bond deposits, but IL is much more
complex than that system and much
lees satisfactory. - ST. Louis Globe
Democrat.