The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1894-12-19
in gold may have them made payable

in gold may have them made payable
in that coin, the Secretary of the
Treasury to have authority to keep on
hand, ready for issue upon applica-
ton, a reserve of bank national bank
notes for each banking association
having circulation"
This suggestion, he said, would have
the effect of placing silver certificates
of small denominations in circulation:
The idea was not to issue national
bank notes of less denominations than
so. This would force the people to
call for the silver certificates which
were now piled up in the Treasury.
The silver certificates were, OF course,
redeemable in silver dollars. He be-
l1eved that the due notes issued under
the new system would be kept on a
parity with gold.
To Mr. Sperry Dem Of Connecti-
cut Mr.. Carlisle said his plan contem-
plated the ultimate retirement of green
backs and notes issued under the Sher-
man law, and there would then be no
other paper of the government redeem
able in gold.
1--WE Should then be on asilver ba-
sis, said Mr.. Sperry.
NO" said Mr.. Carlisle, ION a gold
basis" =.
Mr.. Sperry wanted to know if
should the time ever come when there
was no paper of the government re-
deemable in gold, the debts of the
government would not be paid in
silver.
To this Mr.. Carlisle said that there
would not be enough silver to do this.
Furthermore, the debts of the govern
ment were paid in large bills. The
silver was needed for small coin. Sub
sidiary coin was piled up in the banks
by tradesmen, banks could not pay it,
out, and therefore it was sent to Wash
ington for redemption in large demp-
ton in large denominations. The
Treasury Department found it would
be difficult in getting this money into
circulation again and the Secretary
thought there would therefore be no
great demand for silver in payment
on government debts.
Taking up his suggestion, that the
circulation of State banks be exempt
from federal taxation, under certain
conditions, Mr.. Carlisle said that theo-
retically he believed that the govern
ment had no right to tax State banks,
although the Supreme Court had held
that it was perfectly legal. He thought
that it might be a good thing, however,
to retain the tax, but it was the inten-
ton of the plan suggested by him to
lesson government interference with
these banks as far as possible. 1t was
contended by Mr.. Carlisle in answer
to several questions that it was neeessa-
ry to give the government authority
as was contemplated in his plan to inn
pose tax on circulation of State banks
If they did not comply with the con-
ditions imposed by federal law. This
was the only way the Treasury De-
partment had of controlling national
banks which refused to comply with
the provisions of law applicable to
them.
Mr.. Carlisle said that he believed
that the State banks were necessary
for the needs of the people for local
purposes. He believed that the plan
would give a needed elasticity to the
in the rural districts.
Secretary Carlisle said he would re
turn tomorrow morning and read to
the committee a complete draft of his
bill, embodying his currency plan.
CARL1sLE's CURRENCY PLAN.
WASHINGTON, Dec. 11.-Interest in
the second days appearance of Secret
ary Carlisle before the banking and
currency committee of the House was
shown by the promptness with which
the members of that committee gather
ed this morning. With few exceptions
all were in their seats at quarter-past
10o'clock.
Pending the arrival of Secretary
Carlisle Horace White, of New York
addressed the committee. He said he
had drawn bill which embodies his
idea of the Baltimore plan but which
had not been adopted by the Baltimore
committee. He proceeded to read at
some length a carefully prepared paper
covering the general subject of bank
ing.
When White had concluded Secre-
tary Carlisle, who had appeared some
time previously, addressed the COM
mittee, and read the bill he had pre-
pared to carry out his financial views.
When he had finished reading his
bill Mr.. Carlisle explained that Section
8 repealed Sections 9 and 10 of Act of
July %, 1882 Section 9 of that Act
authorized deposits of lawful money
by ma tional banks to withdraw their
deposits of circulating notes. 1t might
not be absolutely necessary he said,
to repeal that section if the proposed
plan adopted. but still the spirit of the
section was that no national bank shall
retire in the aggregate more than $3,-
O00, 900 per month, and, having done
so, shall not be allowed to increase its
within six months. Sec
ton IL of the Act Of 1882 referred to
gold certificates and their suspension
when the gid reserve fell below hun
dred million dollars, and concerning
this provision Mr.. Carlisle said it was
not good policy for the Government
to establish ware house for the deposit
of gold, and to issue certificates against
it, for the reason that this gold, or a
large part Of it, would come into the
treasury and stay there if these certifi-
Gates were not issued against it. But
still the repeal of this section was not
an essential part of his scheme. His
own view was that it would be benefici-
al to the Government not to issue these