The farmers' union. (Memphis, Mo.) 1891-1895, 1895-01-03
NEW CURRENCY BILL.
SUBSTITUTE FOR CARllSlE'S
PLAN INTRODUCED.
50 ..nny Objections to the Old Ono
that Mr. Springer anG Secretary
Carlisle Decide to Submit a New
NCus!.rc-<cws Notes.
Some Ir:irortan. Changes.

Some I'm rortan. Changes.
Aftc. 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 a substitute
for the Carlisle currency bill. II Is SUBJ
stsntially = new measure, although some
Of the sections Of the original measure
are retained in the new hill.
Two very Important features make thc!e
appearance for thu first tirac III the sub
st;.,'e. The main one MI! have the effect
"F allowing The national sfansiaG system
I" run a;"u-. w.thou; IN arbitrary rr"vis-
ion ,hH, banks mus; organize under the
new Systr.A. The original Carlisle bill
contemplated that nj national banks must
reorSani2r uGGec Tie Rev plan. This
would have required! them IL surrender
the sovc-nmr3t beads wLirh now cons;i-
tute the basis of their cirru!ation. HUT
the substitute Lucs away with this i'm.
pcratire change.
tn" ether important feature of III" sab
sti.ut~ is that Il does away with tEc un-
known liability of banks L. guarantee tho
notes Of All ether banks. This feature Of
the original hill has been much criticised.
1t contemplated that il Il national bank
! failed lis notes w"ul,! b. paid out ot its
assets and the general safety fund.-
made up 10y al, the banks Eut If the rs.
sets snd safety fund were insufficient TO
pay the n"tcs Of the faded 1anh. then the
comptroller of he currency was Ia make
q pro rata assessment on All the banks nf
the country. The banks said this pros
rectiv~ assessment shouls!er.d ,hein 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 suhstf.
tn;c will do away with til" assessment
plan. The atety fund will b. the limit
Of the joint liability OF ::ll the banks for
the failure of individual banks. They
will. however. he compelled to keep UP
this safety fun.! by more rigid provisions
than appeared in tho original bill.
The new bill is arrange, as to show
the new features in rarcntheses. Tho
first section Il ~ follows:
"tal. That $50 much on all acts AID
parts Of acts rs required or authorized tho
deposit Of United States bonds to secure
circulating notes issued 10y national hank-
ing associations tor as required such as
sociations to deposit or keep on deposit
United States bonds for any purpose exc
cept as security for public money! he, and
the same hereby are repealed las I" asso-
cations taking out circulation under this
act); and such notes shall not contain the
statement that they are SO secured
Section y is changed SO that banks can
not only deposit legal tenders to secure
/, circulation. but also currency cer,iti.
Gates issued under section :,lG} Of the ro-
viscd statues of the United States"
| Section ; il retained entire. except that
Its provisions are restricted to apply to na-
! tional banking associations taking out
/ circulation under this act"
Section I inserts the comptroller of tho
currency as the officer to designate the
! place where notes are to be redeemed.
I'm Relation to the Safety Fund.
! lii 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 ''th, collection Of said tax of one.
| fourth of l per cent. for each half year
| shall be resumed and continued until tho
/ 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 cn
/ presentation TO the treasurer of the Unit
| ed States or an assistant treasurer OF tho
United Sates shall bear interes. ut tho
rate OF per cent. per annum from tho
!
thirty days after public notice has been
! given that funds are on hand for their re-
! dcmrtion. ard such Eotes shall constitute
Il first lien upon all moneys thereafter re-
ceived into the safety fund"
Section &. allowing the Secretary of tho
| Treasury to invest money in the safety
fund in bonds, is The same as the original
bill.
Section is entirely rev and takes tic
place of n section which has been elm
mated. The new section il "a follows
Section Z. That every national bank
ing association he retofore organized ard
! having bonds on deposit to secure circul,-
tfon may withdraw such bonds anon the
deposit Of lawful money Of the United
States, now provided by law, and there
after such association may take out c;vcu.
lEtion under this act and be entitled to all
the rights and privileges and immunitics
herein conferred"
Section specifies that the portion of
the national banking act to be repealed il
limited to 80 much OF section II "as 81.
reefs the Secretary OF the Treasury to IA
ceive deposits OF gold and to issue certiti-
Gates thereon"
the original bill.
!s
is also the same as in the original bill, ex.
ccpt that in the restrictions on State
banks a new provision is made that the
guaranty fund maintaincl by them may
include currency certificates issn.d IN.
der section .I.15i Of the revised statutes"
Section IL. THAT any banking ASSOC
citation organized under the laws Of any
Statc may deposit with the Treasurer of
the United States legal Il nder notes, an,l ,e-
ceive certificates therefor in the manner
provided in section '.1a3 Of the revised
statutes Of the United States and, Tie
Secretary of the Treasury may, under
proper rules and regulations u be cst,b-
isked by him, permit such banks 10 pro-
cure and use in the preparation Of their
notes the distinctive paper used in print
Ing ni7ed States securities: but no STATE
bank shall print or eH.rave its notes in
H..