The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-18
THE MINORITY REPORT.
The Majority Criticised-The Bill
Might Precipitate a Panic.

Might Precipitate n Panic.
Washington, Dec. 1.-THE minority
members of the Banking and Currency
committee severely criticise the Car
Isle. bill. They say:
The whole action of the party ma
jority of the committee was most ex-
traordinary and not approved by it's
voting majority. Secretary Carlisle
read a part of the bill on the first
day of his address to the committee,
and would bring it when he finished
his address to the committee on the
following day, which he did. 1t was
not again read or in any manner con-
sidered in committee, and an oppor-
tunity to consider or amend it was re-
fused to all members, Democrats and
Republicans alike. On Saturday at
p. M, Immediately upon the close of
the examination of Mr.. st. John, of
New York, a motion was made to
close the hearing and go into executive
session.
Upon the attempt of a member of the
minority to make a motion to take up
the bill for consideration, they were
informed by the chairman, Mr.. Spring
er, that the Democratic party majority
had concluded not to submit the bill
to the committee for any motion what
ever, but to report it to the House on
Monday and that each member could
offer what amendments he chose in
the House.
1t Would Precipitate a Panic.
1t is the opinion of a number of the
most clear-headed and eminent finan-
ciers in the country that if the Car
Isle bill was enacted into law within
twenty days that it would precipitate
a panic far more severe than that of
93, as it would compel the forced sale
upon the market of nearly 200,000,000 of
United States bonds within six months.
Section 1 repeats "all acts and parts
of acts which require or authorize the
deposit of United States bonds to Sc
cure circulating notes." ETC., instead of
$50 much of all acts and parts of acts"
etc.
How many thousands may be seri-
ously injured by such needless whole
sale repeal of the statutes or whether
the supreme court, after years of lit
igation, might by construction reenact
some parts of such statutes which Sec
rotary Carlisle had repealed, no one
can tell.
Section provides that Each asso-
citation hereafter organized and each
association applying. for additional cir
culation shall pay its pro rata share
into the said fund before receiving
notes" without defining how the total
fund or each share shall be ascertain
ed. In the same paragraph 1t is pro-
vided that "When a national banking
association becomes insolvent its guar
anty fund held on deposit shall be
transferred to the safety fund herein
provided for and applied to the re-
demption of it's outstanding notes"
| That is to say it is merged in the
safety fund, and again there is no
provision in the bill for the use of the
safety fund except by application in
! the lines quoted.
The Safety Fund.
| The same paragraph provides that
| 'In case the said last mentioned fund
| Safety fund.- should at any time be
impaired by the redemption of the
notes of failed national banks and the
| immediate available assets OF said
banks are not sufficient to reimburse
| it, the said fund shall be at once re-
stored by pro rata assessments upon
all other associations and also asso-
Citations SO assessed shall have first
| lien upon the asets of each failed bank
! for the amount properly chargeable to
| ton of it's circulation" And these are
all the provisions in the bill of how
any one is to proceed and
without defining who shall proceed to
do it, or as to how the notes Of failed
| banks shall be redeemed. That is on
the face of the Carlisle bill, when a
bank fails it's guaranty fund is to be
paid out of the safety fund. Then al
of the national banks in the country
are to be assessed to make up the
safety fund. and then all of the ma
tional banks of the country are to put
in their claims to the receivers of the
| failed bank for the moneys they have
paid on assessment for the payment OF
the notes of the failed bank. Probably
! Mr.. Carlisle intended to provide thai