Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-11
CARLISLE EXPLAINS.
,trstary Of The Treasury Before a
House Committee.
GOVERNMENT BANKING PLAN.
,,.,n,,ees over the Baltimore Idea
How II wouid Render the Cur
roncy Elastic.

-.,.,.- Al the foot Of the long table In
,r,vs and Means committee-room OF
u.use this morning Secretary Car
.,nlaineI in detail TO the Banking
currency Committee the plan re-
.,enlci 10y him for new banking
,i ~ the seventeen members OF the
..,., except four Messrs. Black,
utnois. Brosius. Of Pennsylvania;
~ Wisconsin. and Ellis. of Ken
., were IN their seats as early as 10
,bc hour for which the hearing
t.., called. Mr. Culberson. of Texas,
t,f been detained at home by reason
....s In his family. hurried TO Wash
... q, attend to-day's meeting.
3D.. hearing attracted a large number
...-.,entativcs. in addition TO the
~s of the committee. Among those
~. were Mcssrs. Wilson. of West
-...l.. Hooker. Of New York. Snod-
Il Kentucky. and Turner. OF
..., J. X. Cowen. of Baltimore. mem
.......t a. the next Congress. and Senor
,...-.. Che Mexican Minister. were also
o.. .t,.u-ance.
...... The committee was called to order
.re.y Carlisle was asked BY Chair
... S.raeer 20 explain what would be
a.. ,r.rtIpal workings Of his currency
.- ana IN answer Mr.. Carlisle said
bad come to answer questions from
..-.r.iftec and 20 make statement
,..r. but not TO indulge In gene
.fn,nt. as that had been done al
d.. his annual report. Proceeding
... up his suggestions. seriatim, as
,. .,r.areI IN his report. Mr. Carlisle
o.. r. INST two. as follows:
rreal an laws requiring or au-
-..r. deposit Of United States bonds
.. security for circulation.
Permit national banks 70 issue notes
.r amount not exceeding 10 per cent.
.t.ir raiI-up and unimpaired capital.
r...Irc each bank before receiving
o.. notes O. deposit guarantee fund
....>u~r of United States legal-tender
,... including Treasury notes OF 1880.
o.. ... amount of - per cent. of the circu-
.... notes applied for this percentage
t ..r.s.ts upon circulating notes out
..-.,- - De maintained at all times,
... ,.r.r.yer n bank retires its circula-
.- .u whole or in part. its guarantee
,.. .~au.t oi notes retired.
r. animation. Mr. Carlisle said il had
,.. d, De- almost generally believed that
PROVISION 81 the law requiring deposit
. f.r.I states bonds as security Tor
.-....f.u was a failure. lie believed 1t
.-....t,I elasticity Of the currency.
Passing without further comment To the
..l SUGGESTION. Mr.. Carlisle said he
tr.,I that this provision was perfectly
..t. % guaranteeing surety to deposltors.
-.. r-.4sury reserve, he thought, should
exceed more than one half of the out
..-rr- circulation OF national banks.
TIE BALTIMORE PLAN.
,f- Sr-ing,r asked Mr.. Carlisle to eX-
...r me difference between his plan for
,.--c circulation and that Of the Bal
.-.-, bankers, and the Secretary gave
t~ef sketch Of each The Baltimore
Ian. ne said. provided for circulation
.. O. 20 per cent of the capital stock
.. faa banks, without any deposit what
,t.r iIt subject 10 "a tax. the fund raised
.a which % be used In relieving the
..-.s II failed national banks. If this
.-. r.t become large enough. the gov
,--m.ut II 70 relieve the fund, looking
OBJ. banks for repayment.
10, cvEcrnm.nt plan was that sepa-
r'- flnl of 20 per cent. OF the cireuia-
o should be held for each bank. ana
. addition there should be safety
.r1. raised like that Of the baltimore
t4l. bat If this fund should not prove
o.. enough. the Treasury Department
night assess the national banks pro rata
la circulation. The government, through
L..s r..4.s could lose nothing
la further explanation. Mr.. Carlisle said
t.at la.ks by his plan are called upon
~ Got
D.. ;.- Baltimore plan, the government Is
rs.crtl 20 DO this. My plan" said the
81. rstary requires the matt ral banking
-.'.n u support itself -u,irely, and
r...t.s the government Of all connec-
rr with the system. except to furnish
Pcs ana hold the safety fund"
N7 Carlisle said his plan did away with
o.. present system Of redemption of
l.t.cal hank notes. At present, national
banks could send their mutilated notes
I. tle Treasury and receive IN return
l.v notes. By the new plan the govern
u.rt Was divorced entirely from the
rt.rr,ion Of these national bank notes.
T1- s rument was relieved of all re-
e. Is.h.Ity in the matter.
ll answer 10 Mr.. Johnson, Of Indiana,
N- Carlisle said that the idea OF the
l.al wss that the stronger banks should
carry the weaker. II a bank failed so
t.r that II could not pay its notes. the
Ultimate liability was placed by the Balu-
,e plan on the government BY the
r1l proposed hy himself the ultimate
debility was placed on the banks.
.ir Johnson wanted to know II Mr.
Carlisle thought the banks would agree
O. tls, and the Secretary answered that
t. banks must speak for themselves.
= Nas looking out for the interests Of
l .yernment
lo Alr. Johnson DemOcraD, Ohio. Mr.
Carlisle said that one great advantage
10 tIe plan was that IL would furnish an
elastic currency. The entire national bank
.-it would not be filled up TO the
.r.t ~ the plan unless the business OF
i. .GtTy required II. Under the pres
t1i system II a national bank desired TO
t.f- ls circulation. IL must send to the
treasury lawful money OF the United
'es u the requisite amount, but II
t., not allowed 70 withdraw this amount
c'rcuiatiOn under six months. Under
N. Dow plan the bank might retire its
Circulation one day and increase IL the