The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-12
CARLISLE PRESENTS His BILL
The Measure He Prepared 10 Garry Out
His Financial Plan
EXPLAINED BY Hin 10 THE COMMITTEE
The Ssvernment and tho Banks o''''''"
Except In so Tar ne 1t Is Nsees'A'"
Furnish a Safeguard.

.,..,,s,o hef,rc th,, Banking and Currency |
Committee OF the House was SHOWN py |
the promptness with which members oil |
The committee gatherd this morning |
With q few exceptions. all were in thelr !
seats by a quarter past 10 CLOCK.
Pending the arrival Of Secretary Car |
Isle. Horace White of New York, ad |
dressed the committee. lie said he haG |
drawn a bill witch embodied his idea |
of the Baltimore plan, but which had
not been adopted by the Baltimore com
mittce. lie proceeded TO read at some
length IA carefully prepared paper. COW
cring the general subject Of banking
MR. CARLISLE READS HIS BILL.
Secretary Carlisle. who had appeared
sometime previously addressed the com |
mittee at the conclusion OF the hearing |
given Mr.. White. lie had come at the
request OF the committee, to present the
bill he had prepared TO carry out ms |
financial plan which he proceeded TO read
without Introduction. When he had nm |
ished reading his bill MIR. Carlisle eX-
planned that section repealed sections |
8 end IL of the act of July IL, l@Z sec
tion o of that act authorized deposits oil |
lawful money by national banks to with |
draw their deposits of circulating notes. |
1t might be absolutely necessary, he sald. |
TO repeal that section If the proposed
plan were adopted but still the spirit OF
the section was that any national bank |
shall not retire I'm the aggregate more
than three million dollars per month and
having done so, shall not be allowed 10
increase the circulation In six months.
AS TO THE GOLD RESERVE.
Section II of the act of 1889 referred to
gold certificates and their suspension
when the gold reserve fell below nun
dred million dollars, and concerning this
provision Mr. Carlisle said ii was not good
policy for the Government to establish a
warehouse for the deposit of gold, ana TO
issue gold certificates against 1t FOR the
reason that this gold, or large part OF
IT, would come into the Treasury ana
stay there II these certificates were not
issued against II. But, said Mr.. Carlisle,
the repeal of this was not an es-
sontial part Of the matter. His own view
was that IL would be beneficial to the
Government 10 issue these certificates.
but TO have the Treasury hold gold and
pay Il out so as TO get It into circua- |
ton.
UNCLE SAM AND THE BANKS DIVORCED.
To Mr. Brosus. of Pennsylvania, Mr.. |
Carlisle said his theory concerning ma
tional banks was that the Government |
should be wholly divorced from relations
with them. except In so far as II was
necessary to throw safeguards about them
in order to insure their stability ana re-
liability. His belief in this connection
was based both on constitutional anu |
practical grounds.
PROVISIONS OF TIE BILL
Mr. Springer, of Illinois, to-day intro |
duced in the House the financial bill
which Secretary Carlisle read TO the Com
mittee on Banking and Currency.
The bill repeals all acts and parts OF
acts which require or authorize the ue-
post Of United States bonds to secure
circulating notes issued by National Bank
ing Associations. and such notes here
after prepared shall not contain the
statement that they are so secured
National banks are permitted to take
out circulation TO the extent OF 10 per
cent. of the paid up capital; the circula-
tion to be a first lien upon assets
A tax of one-half of one per cent. per
annum upon circulation Is provided.
A safety fund for the prompt redemp-
ton of notes of failed banks is provided
by a tax Of one-half per cent per annum
until the amount reaches hVe per cent
OF the total circulation.
Sections and l2 of the act Of lSS2' re-
lating 10 corporate extensions ana sec
tion 81 of the act of 1864. providing for
national bank currency, are repeated
AN IMPORTANT SECTION,
Section of the bill is as follows: THat
the Secretary of the Treasury may, In
his discretion, use from time TO time any
surplus revenue of the United states in
the redemption and retirement or United
States legal tender notes. but the amount
of such notes retired shall not in the as
Gregdte exceed an dllOuil tpuo' " ~
per cent. of the additional circulation
taken out by national banks and State
banks under the provisions OF the act;
and hereafter no United states notes OF
Treasury notes authorized by the ACT ol
July a. 1890 entitled IAN act directing
the purchase of silver bullion and the is
sue OF Treasury notes thereon, ana LOT
other purposes" for a less dehohihduoh
than $40 shall be issued, and as rapidly
as such notes of denominations less than
.A.n into "A
they shall be cancelled, and an equal
amount of notes of like character, but
In denominations of $40 or multiples there
of, shall be issued in their places, put
nothing In this act shall be 80 construed
as to repeal. or In any manner affect, the
second section of the said act or July
IA. $780,
NoTRs ExEaPT FROM TAXATION.
Section TO- That the use OF circulating
notes issued by a banking corporation,
duly organized under the laws OF any
Stat. and which transacts no other than
banking business shall be exempt
from taxation under the laws Of the
limited States when il is shown TO the
satisfaction OF the Secretary of the Treas
ury and the Comptroller Of the Currency:
ID That such bank has at no time had
outstanding interest circulating notes IN
excess OF 70 per centum OF It's pald up
and unimpaired capital
f2l That It's stockholders are individually
liable for the redemption OF its clrcuiat-
ing otes 10 the full extent or their own
ership of stock; but this shall not be re-
o,,,red In the case of persons holding stock
as executors, administrators, guardians
or trustees. II the assets and funds IN
their hands are liable In like manner
go an the same extent as the testator,
intestate. ward or person Interested in
such funds would be II living and com
petent 10 act and hold the STOCK IN ms
own name. .,..
CD That the circulating notes constitute
by law a ia 81 lien upon all the assets OF
the bank. =,
"a, That the hank has at all times kept
on deposit with an official OF the state
authorized by law TO receive and hold the
same, a guarantee fund in Uni'eu states
legal tender notes. including Treasury
notes Of 1890 equal to 30 per centum OF its
outstanding circulating notes; and
f5) That IL has promptly redeemed aus
notes at par on demand at It's principai
ofhce, or at one or more OF It's prahch
Offices. II II has branches.