Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-12-13
CARLISLE'S BILL.
Text Of the New Financial Measure
Proposed by the Secretary Of
the Treasury.

lisle has presented his financial hill to thu
committee on banking and currency. II
the first section all acts regulating the
deposit of United States bonds to secure
circulating notes of national banks are
repealed.
The second section provides for the is
suing of circulating notes to national
bank equal to rs per cent OF the paid and
unimpaired capital upon depositing legal
tender notes with the United States equal
to so per cent of the circulating notes
applied for. These circulating notes
shall be in denominations of $40, aud
multipies of ten, and shall be uniform in
design.
Section 8 levies a duty of "a per cent
for each half-year upon the average
amount of the banks circulation.
Section provides for the mode of re-
demption and retirement of banks cir
culation.
Section creates the safety fund for
the prompt redemption of circulating
notes of failed national banks. Each
bank shall pay to the United States treas
urer in the months of January and July
IN each year tax of a per cent for each
half-year upon the average amount of its
circulating notes outstanding until the
said fund amounts to per cent of the
total amount of national bank notes out
standing, and thereafter said tax shall
cease. bank retiring or reducing its
circulation shall be entitled to withdraw
any part of its fund. The mode of pro-
cedure in case of a banks failure is out
lined.
Section allows the secretary Of the
treasury to invest money belonging to the
safety fund in United States bonds.
Section also provides that on July l,
1895, national banks now having bonds on
deposit may withdraw them and substi.
tute the 80 per cent guarantee fund.
Section repeals previous acts conflict
ing with this measure.
Section . provides that the secretary of
the treasury may, in his discretion, re-
deem and retire United States legal ten
der notes; that no United States or treas
ury notes authorized by the act of July l.,
1890, of a denomination of less than $40,
shall be issued.
Section 10 states that the banks, duly
organized under the laws of any state,
which transact national banking busi-
ness, shall be exempt from any taxation
regulating state banks.
Section II provides that state banks
shall not issue notes similar in design to
United States notes or certificates or ma.
tional bank notes.
house by Congressman Springer, of Hi
nois.
STILL TALKING.
Washington.-The house Blinking and
currency committee continued its hear
ing to-day. Letters were read from Wm.
Dana, editor of the Commercial and
Financial Chronicel, and from R. B. Fer
ris, vice president of the Bank of New
York. Ferris said: "There seems to be
no good reason why the existing national
banks who have United States bonds on
deposit with the comptroller should not
be allowed to
CONTINUE AS THEY ARE
until their charters expire or their de-
posted bonds are paid off, Section
of Carlisle's bill seems like forcing the
banks to do what they have not been con-
suited about"
Ferris advocated the establishment of
central redemption agenci which would,
he thought, enhance the elasticity of cir
culatlon based on the deposit Of bonds.
Referring to section 10 of the Carlisle
bill, providing for the issue of notes by
state banks without the provision of
sinking fund, Mr.. Ferris said: "It makes
the bill simply
AN INFLATIoN MEASURE,
modified by the deposit of 80 per cent in
legal tender notes and a provision to
cancel U. s. notes to the extent 10 Of per
cent of the new circulation issued when
the treasury has means to do it," The
letter concluded, CAS- the bill substi-
tutes national bank notes for new issue
it will be failure, as it presents no in
ducements to solid banks to become in
surers of circulation of mushroom instl-
tutions, and to stimulate the organiza-
ton of banks not subject to U. s. inspec-
ton is questionable.'
William G. Cornwall, president of the
New York banking association, read
prepared paper advocating the
Baltimore plan.
REPLYING TO QUESTIONS
by Mr.. Warner, Cornwall said he thought
The greenbacks and treasury notes out
standing should be redeemed, but he
would perform this redemption with low
rate U. s. bonds. He also said he did not
consider that part of Secretary Carlisle's
plan relating to the retirement of treas
ury notes sufficiently definite. Cornwall
said return to state bank notes weuld
bring about return of counterfeiting
now reduced to minimum.