New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-11


ness in his family. hurried to Washington 10 at
tend to-days meeting.
The hearing attracted a large number OF Repre-
sentatives In addition to the members OF the com
mttee. Among those present were Mr. WILSON, OF
West Virginia; Mr.. Hooker. of Ncw-fork; Mr..
Snodgrass of Kentucky, and Mr. Turner OF
Georgia j. X Cowen. of Baltimore, a member
elect OF the next Congress. and Senior Romero the
Mexican Minister. were a.so In attendance
When the committee was called to order, Secre-
tary Carlisle was asked by Chairman Springer
10 explain what would be the practical WORKINGS
of the currency plan. In answer Mr.. Carlisle
said he had come TO answer questions OF the COM
mittec and 20 make statement OF his plan p"t
not indulge in general argument, as tnat had
been done already in his annual report Proceed
Ing to take up his suggestions seriatim, as 'hey
appeared in his report. Mr. Carlisle read the hrs'
two. as follows
Repeal al laws requiring or authorzi,ns ,n ne
deposit of United States bonds as security ior
; Permit National banks to issue notes to an
ama nnm mTs eapa but require each
before receiving notes deposit a guarantee fund
Guiding Treasury notes OF $780, TO the amount OF
20 cent upon the notes les aHpeG
notes outstanding to be maintained at an lines
and he ~ mart bank aTaee It's fnG to be-
turned to 1t in proportion to the amount OF notes
retired.
In exclamation Mr. Carlisle said it had come
10 be almost generally believed that that provision
OF law requiring the deposit OF United states bonds
as security for circulation was failure he De-
Meved 1t prevented the elasticity of the currency
Passing without further comment to the second
suggestion. Mr.. Carlisle said he believed that this
provision perfectly safe in guaranteeing surety
TO depostors. The Treasury reserve. he thought
should not exceed more than onc-half Of the out
standing circulation OF National banks
DEPARTURES FROM THE BALTIMORE PLAN.
Mr.. Springer asked Mr.. Carlisle to explain the
difference between his plan for retiring circulation
and that Of the Baltimore bankers, and the Sec
rotary gave brief sketch Of each The Baltimore
plan. he said provided for a circulation up to
90 per of the capital stock Of the banks With
out any deposit whatever, but subject TO tax the
fund raised from which was TO be used in relieving
the funds Of failed National banks. II this does
not become large enough the Government is TO
relieve the fund looking to the banks for re-
payment The Government plan was that sepa-
rate fund Of 80 per cent Of the circulation should
be held for each bank and in addition there should
he a safety fund raised like that Of the Baltimore
plan; but If this fund should not prove large
enough the Treasury Department might assess Ma
tional banks pro rata on circulation. The Govern
ment. through this means could lose nothing
In further explanation Mr. Carlisle said That the
banks by his plan called upon 10 Keep the
safety fund intact; in the Baltimore pan the
Government required to do this. My plan
said the Secretary. requires the National banking
system 10 support itse. entirely. and relieves the
Government OF Al connection with the system
except furnish and hold the safety fund
Mr. Carlisle said his plan did away with the
system OF redemption OF National bank notes Al
present National banks could send their mutllated
notes 10 the Treasury and receive in return new
notes BY the new plan the Government was d.
vorced entirely from the redemption Of these M
ticnai bank notes. The Government was releVe1
OF all responsibility IN the matter.
Chairman Springer interrupted Secretary Carlisle
IN sf whether,
winding UP of the affairs of failed bank. the
notes would ever be At discount. ana ne re-
piled In the negative. The process OF redemption
would be gradual. and unless all the banks should
fail ell the notes would he redeemed at par he
argued that The banks ought TO bear all the ex-
penses of current redemption OF their notes and
be required TO redeem them themselves except
such as might be muiilsted. At present they are
able TO lock up good deal Of lawful money when
il is needed for circulation. Mr.. Johnson asked:
Does not the Government liability on account OF
the notes give the people greater confidence In
them" Secretary Carlisle replied: That's mere
matter of opinion. Yes 1t does inspire confidence
no doubt; but believe that the people generally
would be satisfied with the security offered by the
proposed plan
In answer 10 Mr. Johnson. OF Indiana. Mr.. Carlisle
said that the idea OF the pan that the stronger
banks could carry the weaker. II a bank failed
50 badly tina, II could pay its notes, the ul,i-
mate liability paced by the Baltimore plan.
the Government, Dy the pan proposed by MINI
self the ultimate liability was placed on the banks
Mr.. johnson wanted know II Mr.. Carlisle
thought the banks would agree to this and the
Secretary answered that the banks must speak
for themselves; he looking out for the inter
Of the Government
1T WOULD FURNISH AN ELASTIC CURRENCY.
To Mr. Johnson Dem. Ohio, Mr.. Carlisle said
that one great advantage Of his plan was that It
would furnish elastic currency The entire
Maj haDk moi be
limit plan unless the business of the country
required II. Under the present systeni. II d Ma
tional bank desired retire its circulation 1t must
send to the Treasury lawful money Of the United
States OF the requisite amount: but IL was not al
lowed withdraw this cunt from circulation
under six months. Under the plan bank
might retire its circulation to-day and increase II
tomorrow.
In reply to questions by Mr. Warner, Of New
York. the Secretary expressed the opinion that II
the safety fund should be increased to ~ per
cent the security TO noteholders would be suffi-
cient without the deposit Of 80 per cent Of law
full money guarantee fund but the condition
and needs OF the National Treasury such that
the banks should BE- required to deposit guar
johnson. OF Indiana, wanted to know whether the
Of r a as and Other 9s
dues, except customs. and Mr.. Carlisle replied:
TS as ana To Vide
field. which however. was not explored to-day.
National banks could redeem their notes in
anv lawful money-gold, silver etc.-and that the
onion as TO what kind OF money they should use
for that purpose would rest with them. This was
the first outcropping OF silver question
Mr. Walker (Rep.. Mass wanted to know
whether Mr Carlisle had drawn bill embodying
his views
Mr. Carlisle said he had a sketch OF such meas
ure. end he promised to furnish the committee with
a complete bill as he had perfected the
draft he had dictated
Continuing his explanation Of the provisions Of
his plan seriatim. Mr. Carlisle took up the fourth
suggestion providing for the imposition OF tax
OF u OF / per cent per annum. payable semi
annually upon the average amount Of notes In cir
cuIation 10 defray the expenses Of printing notes