The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-11
CARLISLE And THE CASH.
The Secretary Explains His New Cur
TenCy Scheme.


but Won't Put the Country on Sill
yer Basis-A Clause That viii Con-
tinue the Government Control of the
Banks.
Washington. Dec. 10-Standing at the
foot Of the long table in the ways and
means committee room of the House this
morning, Secretary Carlisle explained in
detail to the banking and currency COM
mittee the plan recommended by him for
a new banking law. All of the seventeen
members of the committee except four
/ Messrs. Black of Illinois, Brosius of
Pennsylvania. Haughen of Wisconsin and
/ Ellis of Kentucky-were in their seats as
early as 10 o'clock, the hour at which the
hearing was called. The hearing attract
| ed a large number of representatives, in
| addition to the members of the committee.
! Among those present were Messrs. Wilson
| of West Virginia, Hooker of New York,
/ Snodgrass of Kentucky and Turner of
| Georgia. j. X. Cowen of Baltimore, mem
| ber-elect of the next congress, and Senor
Romero, the Mexican minister, were also
! in attendance.
When the committee was called to order
| Secretary Carlisle was asked by Chair
| man Springer to explain what would be
| the practical workings of his currency plan.
/ in answer Secretary Carlisle said he had
| come to answer the questions of the COM
mlttee and TO make a statement of his
plan, but not to indulge in a genral argu-
ment, as that had been done already in
4 his annual report Proceeding to take up
| his suggestions seriatim as they appeared
| in his report, Secretary Carlisle read the
/ first two as follows:
! a. Repeal all laws requiring or author
izing deposit of United States bonds as
| security for circulation.
(2) Permit national banks to issue notes
| to an amount not exceeding 75 per cent. of
| their paid up and unimpaired capital; re-
| quire each bank. before receiving notes, to
/ deposit a guarantee fund consisting of
| United States legal tender notes, includ-
ing treasury notes of 1890. to the amount
/ of 30 per cent. upon the circulating notes
applied for; this percentage of deposits
| upon circulation notes outstanding to be
maintained at all times, and whenever
| bank retires its circulation in whole or in
! part, it's guarantee fund to be returned 10
| it in proportion to the amount Of notes
| retired
In explanation Secretary Carlisle said
/ ii had come to be almost generally believed
that that provision of the law requiring a
! deposit of United States bonds as security
it prevented elasticity of the currency.
Passing without further comment to
/ the second suggestion, Secretary Carlisle
! said he believed that this provision was
/ perfectly safe in guaranteeing security to
depOsitOrs. The treasury reserve, he
| thought, should not exceed more than one
| half of the outstanding circulation Of the
! national banks.
Mr.. Springer asked Secretary Carlisle
to explain the difference between his plan
for retiring circulation and that of the
| Baltimore bankers, and the secretary gave
a brief sketch of each. The Baltimore
plan he said, provided for circulation
up to per cent. of the capital stock of
the banks without any deposit whatever,
but subject to the tax fund raised, from
which money was to be used in relieving
the funds of failed national banks. If
this did not become large enough the
| government is to relieve the fund, looking
to the banks for repayment. The gov
ernment plan was that a separate fund of
80 per cent. of the circulation should be
held for each bank, and in addition there
should be a safety fund raised like that
of the Baltimore plan, but if this fund
should not prove large enough the treas
ury department might assess the national
banks pro rata on their circulation The
government through this means could lose
nothing.
In further explanation Secretary Car
are called upon to keep the safety fund
intact. In the Baltimore plan the govern
ment was required to do this. my plan,"
said the secretary, requires the national
banking system to support itself entirely,
and relieves the government of all connec-
ton with the system, except to furnish
the notes and hold the safety fund"
Secretary Carlisle said his plan did
away with the present system of re-
demption of national bank notes. At pres
ent the national banks could send their
mutilated notes to the treasury and re-
ceiVe in return new notes. By the new
plan the government was divorced entire
ly from the redemption of these national
bank notes. The government was relieved
of all responsibility in the matter
In answer to Mr.. Johnson of Indiana,
Secretary Carlisle said that the idea of the
plan was that the stronger banks should
carry the weaker. If a bank failed so
badly that it could not pay it's notes the
ultimate liability was placed by the Bal
timore plan, on the government; by the
plan proposed by himself the liability was
placed on the banks
Mr. johnson wanted to know if Secre-
tary Carlisle thought the banks would
agree to this, and the secretary answered
that the banks must speak for themselves:
he was looking out for the interests of
the government.
To Mr.. Johnson, dem, of Ohio, Secre-
LdlS 1dihSAt Sdiu ludN one great aQNan-
tage of his plan was that it would furnish
an elastic currency. The entire national
bank deposit would not be filled up to
the limit of the plan unless the business
of the country required it, Under the
present system if a national bank desired
to retire it's circulation it must send to
the treasury lawful money of the United
States of the requisite amount but it was
not allowed to withdraw this amount for
circulation under six months. Under the
new plan bank might retire its circula-
tion to-day and increase il Tomorrow
Mr.. Walker, rep, of Pennsylvania,
wanted to know whether Mr. Carlisle
had drawn a bill embodying his views.
Mr.. Carlisle said he had a sketch of
such measure and he promised to fur
nish the committee with complete bill
as soon as he had perfected the draft he
had dictated.
Mr. Carlisle took up his suggestion
that mo national bank note to be of less
denomination than ten dollars, 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 Secre-
tarzr of the Treasury 10 have authnrifv