Crawford avalanche. (Grayling, Mich.) 1879-19??, 1895-01-03
NEW CURRENCY BILL.
SUBSTITUTE FOR CARLISL E'9
PLAN INTRODUCED.
So Many Objections to the Old Ono
that MIR. Springer and Secretary
Car1is1e Decide to Submit a New
Measure-News Notes.
Some Important Changes.

Some Important Changes.
After conferences between the Demo-
cratic members of the House Committee
on Banking and Currency and with the
approval of the Secretary of the Treas
ury Mr.. Springer introduced substitute
for the Carlisle currency bill. 1t is sub
stantially a new measure, although some
of the sections of the original measure
are retained in the new bill.
Two very important features make their
appearance for the first time in the sub
stitute. The main one will have the effect
Of allowing the national banking system
to run along, without an arbitrary provis-
ion that banks must organize under the
new system. The original Carlisle bill
contemplated that all national banks must
reorganize under the new plan. This
would have required them to surrender
the government bonds which now consti-
tute the basis of their circulation. But
the substitute does away with this inn
perative change.
The other important feature of the sub
stitute is that it does away with the un-
known liability of banks to guarantee the
notes of all other banks. This feature of
the original bill has been much criticised.
1t contemplated that if a national bank
failed its notes would be paid out Of its
assets and the general ''safety fund.-
made up by all the banks. But if the as
sets and safety fund were insufficient to
pay the notes of the failed bank, then the
comptroller of the currency was to make
pro rata assessment on all the banks of
the country. The banks said this pros
pective assessment shouldered them with
an unknown risk. In effect it made them
supply insurance on all the notes of banks
in which they had no concern.
In view of these criticisms the substi-
tute will do away with the assessment
plan. The "safety fund" will be the limit
Of the joint liability of all the banks for
the failure of individual banks. They
will, however, be compelled to keep up
this safety fund by more rigid provisions
than appeared in the original bill.
The new bill is arranged so as to show
the new features in parentheses. The
first section is as follows:
"(a). That $50 much of all acts and
parts of acts as required or authorized the
deposit of United States bonds to secure
circulating notes issued by national bank
ing associations Tor as required such as.
sociations to deposit or keep on deposit
United States bonds for any purpose ex-
cept as security for public money! be, and
the same hereby are repealed (as to asso-
Citations taking out circulation under this
act); and such notes shall not contain the
statement that they are so secured"
Section 2 is changed so that banks can
not only deposit legal tenders to secure
circulation, but also currency certifi-
Gates issued under section 5193 of the re-
vised statues of the United States"
&c afai paI n
It's provisions are restricted to apply to ma
tional banking associations taking out
circulation under this act"
Section inserts ''the comptroller of the
currency" as the officer to designate the
place where notes are to be redeemed.
In Relation to the Safety Fund.
In section provision is made for keep
ing up the safety fund, and in addition to
the terms of the original bill it is provided
that ''the collection of said tax of one
fourth of per cent. for each half-year
shall be resumed and continued until the
said fund is restored to an amount equal
to per cent upon the total circulation
outstanding. All circulation notes Of
failed national banks not redeemed on
presentation to the treasurer of the Unit
ed States or an assistant treasurer of the
rate Of 6 per cent. per annum from the
date of the suspension of the bank until
thirty days after public notice has been
given that funds are on hand for their re.
demption, and such notes shall constitute
first lien upon all moneys thereafter re-
ceived into the safety fund"
Section 6, allowing the Secretary Of the
Treasury to invest money in the safety
fund in bonds, Is the same as the original
bill.
Section z Is entirely new and takes the
place Of a section which has been elm
mated. The new section is as follows:
Section z. That every national bank
ing association heretofore organized and
having bonds on deposit to secure circula-
ton may withdraw such bonds upon the
deposit Of lawful money of the United
States, now provided by law, and there
after such association may take out circu-
lation under this act and be entitled to all
the rights and privileges and immunities
herein conferred"
Section 8 specifies that the portion Of
the national banking act to be repealed is
limited to SO much of section IL "as di-
rects the Secretary of the Treasury to re-
ceive deposits of gold and to issue certiA-
Gates thereon"
Section is substantially the same as in
the original bill.
Section 10, providing for State banks,
Is also the same as in the original bill, ex-
cept that in the restrictions on State
banks a new provision is made that the
guaranty fund maintained by them may
include currency certificates issued un-
der section 6,193 Of the revised statutes"
"Section IL. THAT any banking asso-
ciation organized under the laws Of any
State may deposit with the Treasurer Of
the United States legal tender notes, and re-
ceive certificates therefor in the manner
provided in section 5.193 Of the revised
statutes of the United States and) the
Secretary of the Treasury may. under
proper rules and regulations to be estab-
lished by him, permit such banks to pro-
cure and use in the preparation of their
notes the distinctive paper used in print
ing United States securities but no State
bank shall print or engrave its notes in
similitude of United States note or GER
ti6cate, or national note"
There Is a whale in the Hudson River
and the man who saw il was sober. Will
lam Williams and other residents of Yon-