Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-17
Mr. Carlisle's Currency Revision
Bill Favorably Reported.
VIEWS OF THE COMMITTEE MAJORITY
The Measure Will Not Be Consid-
cred Until After the Recess.
A FL II 7 IN PROSPE

The House committee on banking and
currency having reported their bill to the
House today intend to call 1t up for con-
slderation on tomorrow. They have asked
the committee on rules to report a spe-
| cial order providing for a final vote on
| the measure before the close of the day
| on Friday. 1t is generally conceded, how
| ever, that the proposition to dispose OF
the measure before the holidays has fallen
| through. Members Of the committee on
rules are impressed by the arguments OF
| very considerable number of members
| that more time should be given for the
| consideration of 81 important a measure,
| especially in view.of the fact that the COM
| mtttee devoted themselves almost entirely
| to hearings and scarcely considered the
| details Of the bill. The committee on rules
will probably, therefore, report special
| ordeT which will defer the time for the
| final vote until four or five days after the
close Of the holiday recess. The argu-
| ment for the extension of time is based
| upon the Idea that the House itself will
have to reconstruct the measure The
| committee report will hardly carry with
1t even the usual influence to hold the ma
| tority party together since two democrats.
Johnson of Ohio and Ellis of Kentucky.
voted against 1t. The two men were in
| fuenced by radically different motives.
one being a gold bug of gold bugs and the
| other silver man.
|
1t is apparent therefore, that there will
| be a considerable fight made against the
| bill on both sides of the House, the re-
publican members Of the committee hav-
| ing submitted a minority report.
There are almost many notions about
| the matter as there are members in the
| House, and in their efforts to change it in
this particular or in that they threaten
| to tear it all to pieces. The fact that the
oppCsi is not organized except on the
republican side, and do not agree as to
the particular amendments that should be
carried, may result in the failure of all
amendments and the passage of the bill
1t is. If the opposition were organized
| 1t would be very difficult to get the bill
| through. If not impossible. Meanwhile Mr..
Carlisle is holding before the eyes of Con-
gress the threat that there will be bond
issue If the bill is not passed speedily,
and this will probably induce some demo-
Gratis to vote for the bill, though they do
| not approve of it. But there is almost a
| certainty that there will be a bond issue
/ before the close of the session, regardless
| of the action this bill.
Mr.. Ellis. the silver member Of the COM
| mittee voting against the bill, will throw
| every possible obstacle in the way of its
passage, and when ii comes to a vote on
amendments he proposes to offer an
amendment in the terms of the Bland bill.
providing for the free coinage of silver
at the ratio of 16 TO /.
Conclusions of the Committee.
Chairman Springer presented the report
to the House. 1t rectes in detail the pro-
visions of the bill and what it will ac-
complish. All of this has been stated in the
hearing before the committee. After recit-
ing the conditions of the banks in 1S9S and
the effect the proposed bill would have upon
them, the report presents the following
cases:
IF it should be assumed that all of the
national banks which were in existence on
fha e1Cf af Dot ,I.nr
under the proposed bill, and that all Of
them i'm a great financial crisis should fail.
and if 1t should be assumed that all OF
them had taken out circ ulation to the maxi
mum amount allowed by the proposed bill.
the conditions would then be as follows:
The whole amount OF circulation would
be $5O4.OOO,OOO. The guarantee and safety
funds in the treasury would amount to
$176,OOO,OOO. This would leave S32S, 600 600 in
circulating notes, the payment of which
would be secured by pro rata assessmelts
upon all the national banks whose re-
sources, as before stated, amounted on the
3lst of October, 1894, to s.. ,922.O55."
The Proposed Issue Believed to BE
Safe.
THE amount OF notes, 1T will be seen,
would not equal 10 per cent Of the resources
out OF which they could be paid. The re-
sources OF the national banks do not in
clude the personal liability of the stock
holders. which Is equal to the amount Of
tne STOCK, ana TINS amount, Whlch at times,
as before stated, was S672,OOO,OOO, is an
additional security for the ultimate re-
demption of the circulating notes. In view
of these facts, your committee are of the
opinion that should the proposed bill be-
come a law, the notes which would be
issued under 1t would be absolutely safe
under any and all possible business con-
dtions.
Some doubt has been expressed as to
whether banks would take out circulating
notes under the proposed bill, in view OF
the remote and contingent joint liability of
all the banks for the circulating notes Of
each. Your committee are of the opinion
that this is not an unreasonable require
ment. National banks enjoy valuable
privileges and franchises. They owe some-
thing to the public in consideration of the
benefits which they receive from legisla-
ton. II they are Iegardful of their own
interests, and the interests of the note-
holder, there can be no loss to them, nor
to the note-holders, by reason of this re-
qrirement.''
Safeguards Around State Banks.
The report says the conditions Of the
section provided for state banks will if
observed by states, throw around the state
bank circulation the most essential safe
guards which are provided for the national
currency. If they are not observed the
10 per cent taS will be imposed and the
notes will thus be suppressed. 1t is true
that some conditions required for national
currency are not required for state banks
currency, but in order that state banks
currency may be made equally safe, the
states must provide the additional safe
guards, If any, which may be necessary
Reported with Reservations.
In closing the committee say: Your
committee are of the opinion that IL the
proposed bill should become a law 1t will
provide for SAFE sufficient and flexible
currency. One of the chief objections to
the present currency system in this coun-
try is want of feAibilty. The amount OF
paper currency In circulation in this coun-
try, except as to national bank notes, is
fixed by statute The bond security re-
41ired for national bank notes makes fex-
ibility very difficult, If not impossible. Such
hexibility is required by the conditions
of trade and commerce is absolutely want
ing. The proposed bill requires that the
secretary shall keep OF hand blank notes,
which can be issued at any time to any
amount which may be required by busi-
ness conditions within the limit of the
circulation permitted under the bill
THUS, provision Is also made for re-
firing notes promptly when the banks may
desire &c do so, and as the outstanding
notes will be taxed one-half of one per
cent per annum. and as the banks taking
them will he deprived of 30 per cent there.