Evening journal., 1894-12-05
MR. CARLlSLE'S PLAN.
The Secretary Of the Treasury
Explains the New Scheme.
THE DEMOCRATS ARE UNDECIDED.
Tho Senate Majority Holds n Caucus, but
Were Divided as TO the Availability Of
Further Tariff Legislation and the Pro.
posed Adoption of Closure Rule.


Further Tariff Legislation and the Pro-
posed Adoption Of a Closure Rule.
WASHINGTON, Dec 5.-Tho new bank
ing scheme which Secretary Carlisle treats
at length in his annual report, which has
been presented to congress- Is being gen
orally discussed today. 1t is the same
financial plan which President Cleveland
mentions in his message
The secretary Of war says, in explaining
the scheme:
81 have prepared the outlines Of plan
which, in my opinion, viii relieve the
government to Il great extent from the
burdens now imposed upon it, secure
within a reasonable time a safe and elias
tic national and state bank currency
and result ultimately in the permanent
retirement of United States legal tender
notes Of both classes. 1t Is In brief as
follows:
'First-Ralnal all laws requiring or
authorizing the deposit Of United States
bonds as security for circulation.
'Second-Pernit national banks to is
sue notes to an amount not exceeding rs
per centun OF their paid up and unim-
paired capital, but require each bank be
fore receiving notes TO deposit guaran-
| tee fund, consisting Of United States le-
gal tender notes, including treasury notes
| Of 1890 TO the amount of 30 per centum
upon the circulating notes applied for,
this percentage of deposits upon the cir
| culating outstanding TO be maintained at
all times, and whenever bank retires its
circulation, in whole or in part, its guar
antee fund to be returned to it in pro
portion 20 the amount Of notes retired.
Third-Retain the provisions of the
law making stockholders individually liza
| bic and provide that the circulating notes
shall constitute first lien upon all the
assets Of the bank.
A Tax on Currency.
"Fourth-Imposo a tax Of one-half Of
l per centum per annum, payable semi
annually, upon the average amount of
notes In circulation to defray the expenses
of printing notes, official supervision, can
collation. etc
g F1fth-No national bnnlx note to be Of
less denomination than $40 and all notes
Of the same denomination to be uniform
In design, but banks desiring to redeem
their notes in gold may have them made
payable in that coin, the secretary of the
treasury to have authority to prepare and
keep on hand. .ready for issue upon appli-
catisn a reserve Of national bank notes
for each banking association having cir
culation.
" "Sixth-Require each national banking
association to redeem its notes at its own
office or at its own Office and at agencies
to be designated by It,
"Seventh-To provide q safety fund for
the immediate redemption OF the circu-
latng notes Of failed banks, impose a tax
of -- per cent per annum upon the aver
age circulation Of each bank until the
| fund amounts TO per cent of the total
circulation outstanding. Require each
bank and each bank taking out addition
| al circulation to deposit its proper proper
ton to this fund before receiving notes.
When q bank fails, its guarantee fund
held on deposit TO be paid into the safety
fund and used in the redemption of its
notes.
If this fund shall be impaired by the
| redemption Of the notes of failed national
banks and the Immediately available cash
assets Of such banks arc insufficient to re-
establish the fund, it shall at once be
made good by pro rata assessments upon
the other banks according TO the amount
Of their outstanding circulation, but there
shall be first lien upon all the assets OF
the failed bank or banks to reimburse the
contributing banks. The safety fund may
be invested in outstanding United States
bonds having the longest time TO run,
the bonds and the interest upon them tC
be held as part of the fund and sold when
necessary to redeem notes of failed banks
Eighth-Ropeal the provisions of the
reorganization and extension act of july
l2, 1882 imposing limitations upon the
reduction and increases Of national bank
circulation
"Ninth-Repeal all provisions Of the
law requiring banks to keep reserve on
account of deposits.
"Tenth-The secretary Of the treasury
may, in his discretion, use any surplu,
revenue of tha United States in the re
domption and retirement Of United States
legal tender notes, but such redemption,
shall not in the aggregate exceed an
amount equal to 10 per cent Of the addi
tional circulation taken out by nntiona
and state banks under the system hereir
proposed.
When Bank Notes Shall BE Exempt.
Elevonth-Clrculating notes issued by
a banking corporation, duly organized uni
J der the laws Of any state and which trans
acts no other than a banking business
shall be exempt from taxation under thl
laws Of the United States when it Is showI
| TO the satisfaction OF the secretary of tbs
treasury and the comptroller Of the cur
rency: /. That such bank has at no tim,
had outstanding its circulating notes il
excess Of 75 per cent Of its paid up an,
unimpaired capital ?. That its stock
. holders are individually liable for the re
i dcInption Of its circulating notes to TIN
full extcnt 81 their ownership Of stock 3
That the circulating notes constitute b.
law first lien upon all the assets of tn
! bank. 4. Tint the bank has at all time
kept a guarantee fund in United State
4 legal tender notes, including treasury note
I OF 1890, equal to 80 per cent Of its out
Z lsstanding circulating notes. 3. That it ha
! promptly redeemed its notes on deman,
! at its principal Office, or at one or more O
! its branch offices, il il has branches
4 Twelfth-The secretary of the treas
: ury may, under proper rules and regula
: tions to be established by him, permit stat
: banks to procure and use in the preparl
> ton Of their notes the distinctive pape
: used in printing United States securities
but no state bank shall print or engrav
its notes in similitude Of United State
a note or certificate or national bank note