Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-12-10
THE MONEY QUESTION
Is the Principal Topic Of Discussion
at the National Capital-Sec. Car
Isle Discusses His Plan
Other W ashinGtOn News.

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Washington, Dec. 1o.-The events OF
the past few days leave little room for
doubt that the financial question is to be
the prominent topic in the senate during
the present session, and there are some
facts which point to state of affairs
which render the session one of great in
terest.
Tt is understood that the instructions
of the Democratic senatorial caucus do
not 60 to the extent of endorsing the
recommendations of the president and of
Secretary Carlisle, but only requires the
finance committee to take these
sUaaEsT1oNs UNDER CONSIDERATION,
as they would any other suggestions
which might come from creditable
source. There is little doubt that the
fiuance committee will take the matter
up, but with what result is not So easily
stated. In the senate at large, the plan
seems to commend itself to some south
ern senators, largely because of the pro-
position to remove the state bank tax.
If the bill should reach the senate it
would be opposed by the extreme free
silver men because they believe in the
law containing such provision. Should
it be enacted it would prove death blow
to silver.
SEC. CARLISLE MEETS THE COMMITTEE.
Secretary Carlisle appeared before the
honse committee on banking and cur
rency to-day to present in detail the
features of the new currency plan pro-
posed in his annual report and endorsed
in the presidents message. Besides the
full mem bership of the committee, there
were present Senor Romero, the Mexican
minister, and many members of congress.
Sec. Carlisle
TOOK UP EACH SECTION
of his recommendations First, repeal
Of all laws requiring OF authorizing the
deposit of Unised States bonds as securi-
ties for the circulation; and second, the
section allowing the national banks to
issue notes to an amount not exceeding rs
per cent of their paid up and unimpaired
capital, and requiring each bank before
receiving notes to deposit guarantee
fund consisting of United States legal
tender notes, including the treasury notes
Of 1890, to the amount of of 30 per cent
upon the circulating notes applied for.
This percentage of deposits upon oircu.
lating notes outstanding is to be main
tanned at all times, and whenever bank
REr1kEs ITS o1RouLT1oN,
wholly or in part, its guarantee fund is to
be returned to it in proportion to the
amount of notes retired.
Mr.. Carlisle said that he was satisfied
that the law now in force, requiring the
present deposit of bonds to secure circu-
'ation, prevented elasticity of the cur
rency.
"The provision outlined" said he,
'gives ample protection without de-
posit of bonds as required by the present
law"
Mr.. Carlisle said that the practical
value of the reserve fund currency was
shown in 1898. There was demand for
money, aggregating $40,0O0,00O. The
treasury did its best to meet the string
ency, but by the time the notes we're
ready for distribution the demand had
gone by and many packages of notes
were returned unopened. The secretary
invited criticism on this particular ac-
ton.
Chairman Springer asked how the sec
retary's plan differed
FROM THE BALTIMORE PLAN.
Mr.. Carlisle explained the technical
difference. The Baltimore plan proposes
to deposit so per cent under conditions,
while the treasury plan proposed to de-
posit 80 per cent. When bank fails, the
treasury plan contemplated an assess
ment on all national banks, they in turn
having lien on the failed banks assets.
Representative Hall, (Missouri), suggest
ed that there was
PREVAILING OPINION
that it was unsafe to place the power of
of currency in the hands of corporations
and banks. "Hw will work automatically"
said Mr.. Carlisle. "The banks will not
expand the currency unless the public
needs it. Their interest will be to expand
and contract as the common interest de-
mands it. These interests will, therefore,
control at all times"
The secretary stated that this fexi-
bility was much more desirable than the
rigid system under which a fixed amount
of currency was cutstanding. At one
time the stringency was so great that the
banks drew out $13,000,O0O under press
ure, and if it had not been for the Cana
dian banks, which sent currency into this
country, serious results might have en-
sued.
OF INTEREST TO THE WEST.
According to the agreement of the