Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1895-01-04
NEW CURRENCY BILL
SUBSTITUTE FOR cARLisLE's
PLAN INTRODUCED.
So Many Objections to the Old One
that Mr.. Springer and Secretary
carlislc Decide to Submit a New
Measure-News Notes. ;

S&A0S 0xGe 6QE1uXGV 0uu oGSEVG0xV
carlisle Decide t Submit a New
Measure-News Notes. )
Some Important Changes.
After conferences between the Demo-
cratic members of the House Committee
on Banking and Currency and with tho
approval of the Secretary of the Treas
ury Mr.. Springer introduced a substitute
for the Carlisle currency bill. It is SUBJ
stantially q new measure, although some
of the sections of the original measure
IRE retained in the new bill.
Two very important features make their
appearance for the first time in the SUBJ
stitute. The main one will have the effect
of allowing the national banking system
to run along, without IN 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 way with this im-
perattve change.
The other important feature of the sub
stitutc 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 n national bank
failed its notes would be paid out Of its
assets and the general safety fund.-
made up by al the banks. But if the as
sets and safety fund were insufficient to
pay the notes Of the failed bank, then tho
comptroller of the currency was to make
n nrn rNf0 0cQnocunonf nv oil Tho hon11o -
the country. The banks said this pros,
ipectivc assessment shouldcred 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.
tutc 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 us to show
the new features in parcntheses. The
first section is as follows:
"(a). That $50 much of all acts and
parts of acts us required or authorized the
deposit of United States bonds to secure
circulating notes issued by national bank
ing associations Tor as required such u.s.
sociations to deposit or keep on deposit
United States bonds for my purpose ex-
cept ms security for public money! be, and
the same hereby are repealed las to ASSOC
ciations taking out circulation under this
ac); and such notes shall not contain the
statement that they are so secured"
Section 2 is changed so that banks cum
not only deposit legal tenders to secure
1swo,,1oAs1rn IN,k nIoo ---AsN
Gates issued under section 5193 of the re-
.vised statues of the United States"
Section 3 is retained entire, except that
its provisions are restricted to apply to ma
tional banking associations 'taking out
circulation under this act"
Section 4 inserts "the comptroller of the
currency" rs the officer to designate the
place where notes are to be redeemed.
In Relation to the Safety Fund.
In section 5 provision is made for keep
ing up the safety fund, md in addition to
the terms of the original bill it is provided
that 'the collection of said tax Of one
fourth of 1 per cent. for each half-year
shall be resumed and continued until the
said fund is restored to an amount equal
to 5 per cent. upon the total circulation
outstanding. All circulation notes Of
tAS AASAVAAA Ou1hS AOL IcucSIuCu Ou
presentation to the treasurer of the Unit
ed States or IN assistant treasurer of the
United States shall bear interest ut the
a 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 IRE on hand for their re-
dcmption, and such notes shall constitute
q first lien upon all moneys thereafter re-
ceiyed into the safety fund.-"
Section Q, 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 elimH
mated. The new section is as follows:
"Section z. That every national bunk
,ing association heretofore organized and
having bonds on deposit to secure ~circula-
,,tion 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-
ilation under this act and be entitled to all
the rights and privileges and immunities
herein conferred"
Section s specifies that the portion Of
the national banking act to be repealed ID
limited to 80 much of section IL ''as d.
;;rects the Secretary of the Treasury to re-
..ceive deposits of gold and to issue certiR-
Gates thereon"
Section 8 is substantially the SANE as in
the original bill.
Section 10. providing for State banks,
10 also the same as in the original bill, ex-
.cept that in the restrictions on State
banks q 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 II. Chat any banking asso-
citation organized under the laws Of any
State may deposit with the Treasurer Of
the United States legaltende notes, andre
ceive certificates therefor in the n
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
kn0 11n{koS Hfokon eno,vsk3oc. L.,k . So