The 19-year-old had a spell with Torquay United last season and Bournemouth may have been tempted to send him out again to gain further first-team experience.
However, he is set to compete for a first-team place with Steve Cook and Tommy Elphick this season after responding to a challenge from Howe.
Howe, who rewarded Cargill with a two-and-a-half year contract in November, told the Daily Echo: "I said to Baily at the end of last season to come back as if he wanted to get into my first team.
"I don't want people to aim to be in the development squad, I want all the young pros to try to be with us.
"There are limited spaces because of the number of bodies we have but, if someone proves they are good enough to be with us they will and Baily has proved that this pre-season. He has been excellent.
"The biggest compliment I can pay him so far is that he looks like he should be part of our squad. He hasn't looked out of place in one training session.
"He is very composed on the ball, he is technically very good and he reads the game well for such a young player. I think he has a bright future ahead of him, providing he continues to keep the attitude he has shown."
Questioned on whether another loan spell could be an option for Cargill, Howe replied: "He is not going anywhere at the moment because our fit centre-halves are Steve Cook and Tommy Elphick and, as we speak, Baily is next in line.
"Hopefully, Elliott Ward will regain his fitness soon and we will have four very good centre-halves. In terms of loan periods for Baily, it is not high on my agenda to see him go out at this moment in time."