The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1862-02-27
SENATOR RowEN.s SPEECH,


cond Section Of bill to provide for the
payment of Taxes and the interest and
principal Of the School Fund in Treasury
Demand Notes, issued by the authority Of
the Government eff the United States, and
the notes issued BY the several branches Of
the State Bank of Iowa, Senator Bowen,
of johnson county, arose and addressed
the Senate substantially as follows;
Mr.. PRESIDENT The question now
before us, is one in which the people Of
my county feel deep and abiding inter-
est, and, / doubt net, this is the pervad-
ing sentiment throughout the State. I
do not feel it necessary to address myself
to the question, whether We should re.
ceive Treasury Demand notes for taxes.
and other State dues; for, upon this
question we all stand happily united, as
good and loyal citizens sho1ld--determined
to sustain the Government by all the
means at our command.
But, before the question is taken upon
striking out the second Section Of this
bill, which provides that the issues of the
different branches of the State Bank
should be received in payment of taxes
and other State dues, I desire to present
my views why such issues should be re-
eelved in payment Of taxes,
The FIRST inquiry presenting itself to the
consideration of the Senate is, lis the
paper of the State Bank good and is it
likely to remain SO p am free to con-
fess, could it be shown that this paper is
not good or not likely 10 remain SO, /
should not support this measure. But in
all the attempts made by the opponents Of
this measure to show why the Bank Issues
should not be taken by the State in pay
m mt Of revenue-not one has been able
to demonstrate that these issues are not
good.
l not only believe that this paper is
good now, but that it is likely to remain
SO hereafter. l, therefore, have no fears
in taking the responsibility OF casting my
vote against striking out this Section Of
the bill. / suppose no one doubts the
power of the Legislature to give this au-
thority. 1t resolves itself into question
of expediency alone. Is it then expedient
to exercise this power in giving this au-
thority?
The State Bank is the offspring Of the
people; it had its origin with the people /;
it was first provided for in the Constitu-
ton and ratified by vote Of the people.
The Legislature gave the provision in
the Constitution practical operation by
chartering the Bank. This charter again
received the sanction of the people at the
ballot box, Our own citizens became its
corporators. They invested their capita
in it for their own benefit, and l trust
with the hope of benefting the people of
the State also.
believe it is generally admitted thai
Banks, honestly administered, may b.
mutually beneficial to the corporators ane
the people. This the people certainl,
thought, when they authorized that banks
should be chartered. Can it be, as gentle
men have assumed, that the people hav,
given the authority for the benefit Of bank
alone
Is it possible that the people of on
State authorized the establishment of
close corporation with certain exclusiv
privileges for their own aggrandizemen,
without any prospect of any general ben
eft to themselves / think the peopl
intended to do no such thing.
! suppose, that the people when the
authorized the creation of bank of issu
whose circulation was always to renal
equivalent to specie, was first, to invit
capital to the State and to afford soun,
circulating medium, and to exclude irres
ponsible bank issues Of other States !; an
secondly, to afford the people engaged il
the productive labor of the country, /
obtain money at q moderate rate of in
terest and to avoid the payment of 20, 81
and sometimes as high as SO per cent. :
The bank has added to the circulatin
medium more than sl,2S0,00O aud ii
issues are now in the hands of the people
and those who. hold the paper Of this ban
are willing and anxious to yet more, be
lleying that il is as good as the gold an
silver, and they desire to have the privil
eye to pay their taxes in such funds. al
the State creditors are willing and anxiou
to receive it in payment of their due,
Then, why deny to the people this prov
sion when the State cannot be iniure
thereby You are all willing that Treas
ury Notes should be received in paymeu
Of taxes And / put the question to ever
Senator upon this floor. whether there
the same guaranty that the gold aud silve
Will be paid on these notes IA on the hill
OF the State Banks. think there is nc
one that can truly say there is. You al
Wiling to receive Treasury Notes to al
the government and to sustain her credi
Then what reason is there that you shout
not be willing to sustain the credit OF yo,
own banks as long as they redeem the
notes in Specie.
What have the banks done that Ia
crusade should be waged againt them