The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-12-18
FAV0RS WILDCAT money
Security No Longer Necessary for
Safety of Circulating Notes.
MONEY THAT FLOATS ON AIR
Springer's Banking Committee Reports
Favorably Upon Mr.. Carlisle's Cur.
rcncy Biil-A Peculiar System Of
Security on Assessment Plan.

Washington, Dec. 17.---Mr. Springer,
Illinois, the chairman of the banking
and currency committee submitted
this morning his report accompanying
the Carlisle bill.
The committee, the report states are
of the opinion that a security to the
full amount of the circulating notes is
sued is no longer necessary for the
safety Of the notes. The bill, the pass
age Of which is recommended by the
committee, does not require the deposit
of bonds Of the United States or of
any other interest bearing obligation,
but in lieu of such security provides:
First-A guarantee fund consisting
of treasury notes, including the notes
issued under the act of congress, APP
proved July Il, 1890, equal to 30 per
cent. of the circulating notes applied
for.
Second-A safety fund, which will
amount, Wher it reaches its maximum,
to per cent. upon the total amount of
national bank notes outstanding.
Third-A first lien upon all the assets
Of the association issuing the same
In case the guarantee and safety
funds and the assets Of the failed bank
are not sufficient to redeem the notes of
such a bank a pro rata assessment
upon all the other banking associa-
tions, according to the amount of their
outstanding circulation, is to be made
by the treasury department and the
banks so assessed shall have first lien
upon the assets Of each failed bank for
the amount of its circulation. 1t is be-
lieved by the committee that the funds
thus provided will be amply sufficient
to secure the notes of failed banks.
In conclusion the committee say: The
extraordinary conditions which con-
front the treasury department have
constrained the members of the ma
jority of the committee while not agree
ing to all the provisions of the BILL nor
to all the reasoning employed in this
report, to concur in reporting the
measures to the house for it's considera-
ton. each reserving to himself the
right to offer such amendments as he
may deem proper and to vote on the
bill finally as he may,determine.
Report of the Republicans.
The report of the Republican mem
bers Of the banking and currency COM
mittee on the Carlisle banking bill be-
gins with the statement that the sign
ers Most heartily and enthusiastically
join with the Democratic majority of
the committee in repudiating the
measure"
The report states that the whole ac-
tion of the party majority of the COM
mittee was most extraordinary and
The bill was only read in committee in
part on one occasion, and an oppor-
| tunity to consider or amend it was re-
| fused both to the Democratic and Re-
! publican members. The report con-
! tinues that it Is the opinion of a num-
! Der of the most clear-headed and emf
nent financiers of the country that If
the Carlisle bill is enacted into law
that it will within twenty days precip-
itate panic far more severe than that
of 1898, as it would compel the forced
sale upon the market of nearly $780,
100000 worth of United States bonds
within six months.
This haste to report the bill is all
the more ineXplcitable," the report
adds, when it is remembered that
| Secretary Carlisle testified that this bill
which he had drafted himself for the
relief Of the treasury would not in any
event relieve it materially for five years
and might not for twenty years"