The herald., 1894-12-12

treasury to invest money belonging to
the safety ad in United States bonds.
Sectlon 7 provides that July l, 1899.
national banks now having bonds on de-
posit NAV Withdraw them and substitute
the 80 per cent guarantees fund.
/ Section s repeats previous acts con-
| fieting with this measure.
Section provides that the secretary
! OF the treasury may, in his discretion,
/ redeem and retire United States legal
/ noles; that no United States or treasury
! notes authorized By the act of July l,
| 1899, of denomination OF lees than $40
shnll he Issued.
Section 10 states that tine banks duly
! organized under the laws OF any states.
which transac, national banking busi>
ness snail be exempt from any taxation
regulating state banks.
Section l provides that state banks
shall not Issue notes similar in design to
United States notes or certificates or
national bank notes.
CARLIsLE's EXPLANATION.
When he had concluded reading the
bill, Mr.. Carlisle explained it in detail.
He pointed out the various sections of
the present law proposed to be repealed
Concerning the conditions imposed
upon state banks by his bill, he said
certain features had been added to meet
criticisms made OF the plan as outlined
in his annual report.
Mr.. Broaius asked whether it was not
desirabe for the government to assume
the rick OF 7edeemug notes rather than
leave il o the banks.
Mr. Carlisle answered in the negative,
He said he did not believe in govern.
meut responsibility further than in pro-
viding the most ample safeguards.
The secretary showed the profits of
national banks under the proposed plan,
az compared with thoir profits under
the present law. He showed that ad.
ditionsl profits and Inducements would
incline national banks to take out circu.
lation.
In the course CT the discussion Mr..
Carlisle SAID he did not think any iln~
mediate retirement OF the United States
treasury notes was practicable. The
eecretary spoke of Comptroller Eckels'
nlan. Without wishing to criticss it
he thought its fatal defect WAS in re-
curing national banks 20 take out two
different kinds of circulating notes.
The shipment of gold was discussed at
some length. Mr.. Carlisle said the loss
OF the Sherman law. The on,how OF our
gold had brought on financial dstrust
end Bad threatened panic. But there
had been no real danger. These panics
were largely the result OF sentiment and
public feeling inetead OF well basel
fears.
During q general discussion between
Mr.. Carlisle and embers of the COM
mittee, the secretary referred to the
Issuing of bonds. lie said as much az
he regretted it, he saw no way of pres
venting the further ieue OF bonds as
long as the present eystem remained.
THE BALTIMORE PLAN.
Mr.. Homer OF Baltimore then address,
ed the committee en- the Baltimore plan.
lie spoke OF the requisite that
bank note be Gecured. The proposed
plan undertook TO provide this requisite,
without the necessity OF a government
bond. Uniformity was another requisite
OF eeie banking. 1t was also secured by
the proposed plan. 20 that the system
would be truly national, uniform in all
stales, inatesd OF varying in each OF the
Al states.
AIR. Homer stated the committee OF
national bankers mad not yet formulated
bill.
Springer, Democrat, Illinois, today in.
troduced in the houss Secretary Car
ilsIe's banking bill. 1t was ordered
printed and referred to the committee
on banking and currency.