New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-22
CARLISLE BILL WITHDRAWN
IT DIES WITHOUT 4 VOTE.
A SUBSTITUTE INTRODUCED BY CHAIR
MAN SPRINGER.

THE NEW MEASURE LITTLE LESS INCoHERENT
AND OBJECTIONABLE THAN THE FIRST ONE
MOST OF THE DETERMINATIONS AGAINST
NATIONAL BANKNoTES RETAINED.
lBY TELEGRAPH TO THE TRIBUNEl
Washington. Dec. 2l.-The formal abandonment
OF the ADMINISTRATORS scheme Of currency re-
form" by the Banking and Currency Corlmittee
OF the House OF Representatives which was in
dicated in these dispatches last night took place
this afternoon. some what sooner than might have
been expected However it must be remem-
bered that currency reform has been moving
with rapid strides since the November elections,
and especially since Congress reassembled. less
than three weeks ago. That short period has
been long enough to witness the death Of one
Currency bill without the formality of vote.
That unfortunate measure was concocted to win
votes among men of diverse views. sop was
offered TO the supporters of the Baltimore plan a
rich, juicy plum to the State bank men, and so
on but the resultant mixture was not acceptable
10 anybody.
The substitute offered by Chairman Springer
this afternoon is another horse of about the same
color. One or two, perhaps three, of the more OBJ
1ectionable features Of the original scheme have
been eliminated or modified; but, speaking in gen.
eral terms. the substitute Is scarcely less inco-
herent and Objectionable than its predecessor.
All the determinations as against National bank
notes and in favor of State bank issues have been
retained. except that State banks, before they
begin TO issue notes. must have certificate from
the Secretary of the Treasury and the Controller OF
the Currency that they have complied with the
conditions Of the law. and that their notes will
not be liable to taxation. Even this provision
might operate to the advantage Of those banks by
giving 10 their notes standing currency
which they would not otherwise enjoy. and 1t APP
pears moreover to abolish the penalty on the cir
cuation of State banknotes by persons and cor
porations other than the banks that issued them.
The substitute does not change the require
ment as to minimum denominations of banknotes.
National banks may issue no notes OF lower de-
nomination than So but State banks may do so,
and thus neutralize TO a considerable extent one
Of the effects which the Secretary of the Treasury
professed TO be anxious to PRODUCTIVE wider
and more general OF silver dollars and silver
certificates of low denominations. State banks
are not required to establish agencies for the re-
dempton of their notes, but National banks must
establish redemption agencies at such places as
may be designated by the Controller OF the cur
rercy The latter provision is step backward
Prior TO 1874 National banknotes were redeema-
BILE in certain cities-sixteen in plumber. AS MI
Sperry showed in his excellent speech yesterday
this plan worked badly, and after trial OF ten
years it was discarded and the present system
was adopted, since which time no holder OF Ma
tional banknote has been compelled TO suffer a
discount on II as frequently happened under the
old plan which the majority Of the Committee on
Banking and Currency now proposes TO revive.
: Secretary Carlisle has strenuously contended
that vital feature Of the Administration
scheme and one which II adopted would reheVe
the strain upon the National Treasury, was that
which compelled National banks TO Withdraw ule
bonds deposited for circulation and SUBSTITUTE
lezal-tenders TO the extent OF 80 per cent Oh ule
amount Of circulating notes issued 10 lheHi, NJ
TO exceed in any case, however 10 per cent OF tne
banks paid-up and unmpaired CAPITA. lns
compulsory feature has been eliminated. as aiso
has the assessment feature which imposed JOINT
liability on all the banks for the redemption OF
the notes of failed banks. The same object is TO
be accomplished by a provision authorlzlhs the
assessment and collection Of an additionai YAK
make good any impairment OF the sarety
fund. The proposition TO make the notes
of failed banks bear interest at the rate OF per
cent until redeemed will hasten the rate OF re,
demption but Il was part Of the original
scheme which Secretary Carlisle dictated In the
form of a bill to his stenographer either DeIore
breakfast or after breakfast on the morning
when he first appeared before the Banking and
Currency Committee to exploit, explain and ad-
vocate II. IL,
The substitute by no means removes the Vita
objections urged against the original measure
and II has evidently been thrust forward AT lnis
time in the hope Of catching votes and sohdiiy'
ing the Democratic party in the House of Rep
resentatives. Like Its predecessor IL si,n I,
nartisan emergency" BILL bill which Repub
Ncans are called upon TO support not 10 improve
the currency system or strengthen the finances o.
\ the Nation. but for the benent OF 9iscIeuIte'
lYand incompetent political party and Admh
'fstration The Republican members OF the Com
mittee on Banking and Currency were not ever
permitted TO see the proposed supsu'u.e oeIoi'
4 was thrust before the House by Chairman
Springer this afternoon. and the first informa
ton they had of its existence was gathered IRON
The Tribune this morning. 1t Is party caucus
scheme Of the smallest possible dimensions; &
scheme Matched by a caucus composed OF les!
than dozen members of the Democratic party
assisted by the Secretary OF the Treasury.
THE NEW CURRENCY BILL.