The weekly Ottumwa courier. [volume] (Ottumwa, Iowa) 1857-1872, 1862-03-20

Speech Of Hon. y. w. Dixon,
OF Wapello County, on tho question of au
Ht0rizing the payment of Iacss and til,
interest and principal of the School Funf
IN notes Of tie State Bank of Io,ca, de-
p iscred In tie lond Senate' "a 9 a,as '"f
i Ma. CHAIRMAN: am in favor Of the mo
ton to strike out the End section Of this bill
When thislqucstion Of authorizing the pay.
ment Of taxes and the interest and principal
Of the School Fund in notes Of the State Bank
Of iowa was first proposed, was inclined
4 to favorit. Fully conscious of the terrible
condition Of the country, and that the peo,
ple. of Iowa were groanng under the weight
Of heavy taxes, was exceedingly anxious
to adopt every safe means of relief that their
necessities might demand ( It was with this
feeling that carefully, examined every fear
ture of this question before coming TO the
conclusion to which was irresistably forced.
Being now perfectly satisfied that the neces-
stiles Of the people do not req uire such a
measure--that it would be utterly destruc-
tive to the best, interests Of the State, I be-
| leve it to be my duty to oppose it, and sub
init my reasons for so doing. Well do I
know that am not on the popular side Of
| this question, and that my action will be
misrepresented by ignorant and malicious
persons, but know my duty and expect
to perform It, let the consequences be what
they may. a i 30
| Let usenquire, Mr.. Chairman, what is our
present condition. Are. we not TOO great
" alarmed about the federal tax, and liable
to run into error? The Governor informs
us in his message that If the federal tax
should be $3.50, ,000, we would not have to
pay more the first year than $1S2 600 il we
assume the tax and thereby save the 10 per
cent; because the State has already expend-
ed for the general government $370, ,000.--
And the Governor further informs us that
our State expenditures may be cut down
800. 600, which deducted from the $780,
900, will leave us only $50, 800 to raise in
addition to the amount collected last year.
By economy in township and county expens-
pcs. much more than the $S2, 800 can be saw. d,
so that our taxes need not be greater than
they were for the year 1851. But it may be
said that we will have to raise about $780,
600 in addition. to pay the outstanding war
rants on tue War and Defence Fund. True,
but there is not Senator on thus floor that
is not in favor Of issuing on the return of
these warrants, warrants in amounts of two,
three and five dollars, to circulate as bank
notes, and d'be. receivable in payment of the
tax levied to pay this amount of $l8f, 900.
An act authorizing the issuing of these small
warrants will unquestionaply pass, 40 that
there will be no necessity whatever for taking
the notes of the State Bank of Iowa for this
purpose. Now is ii not plain ttAt our taxes
the present year need not be any greater
than they were last? iEf ei su-
But the friends of this measure may claim
that the people are less able to pay their
taxes than they have been. do not believe
this is the fact, but will admit 1t to crafty
Senators. propose to make it muc.l easier
for them to pay their taxes by receiving
United States Treasury demand notes for oil
taxes, and it cannot be denied that there
will be several millions of dollars of these in
circulation In the State Of Iowa, SO that the
people might pay their taxes with this cur
rency alone, without having to pay single
dollar in gold or silver And we are all in
favor of the section Of this bill which author.
ICES the payment Of taxes and the school
fund in U. S. Treasury there is no
question about the passage Of that section
Of the bill, bv this Legislature.
/ Now Mr.. President, I think have shown
that our taxes need not be increased, and
that by receiving the U S. Treasury notes
it will be much easier for taxpayers to pay
their taxes than heretofore; hence Ideny
that we arc forced by, absolute necessity to
take this Bank paper. deny that the ne
cessities Of the taxpayers demand that we
should take bank notes for taxes. a
But propose to give gentlemen who urge
this bank note project, the benfit of all they
can possibly claim on the ground of necessi-
ty Being still anxious to crafty them, I
will grant that the necessity Of taking some
other currency than the Auditors warrants
and the Treasury notes docs really exist
Does it then follow that there is no other
means of relief to the people than to take the
notes Of private banking corporation for
taxes and the school fund? I ask gentle
men to pause and consider the dangerous
precedent they would be creating for sub.
sequent legislatures who might not be so
wise and virtuous as we are pleased to con
s,der this. Since the organization of this
State, no such dangerous step has been Ia
ken, bur should this measure be adopted the
J precedent will be established and the State
will become the prey Of greedy banking in
| stitutions demanding that their paper shall
be taken for taxes and the school fund. s.
claim it is the duty of every Senator to
know without the possibility Of being mis-
taken-1st, That the State Banking system
ia perfectly safe. I'd, That the bank is at
this time sound, aud 3D., That it cannot be-
come unsound so that the notes may greatly
depreciate or become worthless, and loss
to the State. How many Senators Ea0w
these three things to be true of the State
Banking system and bank and branches es-
tablshed under Il? I am unable to state,
but this I do know, that no Senator has at
tempted to produce one iota Of evidence to
these points. Notwithstanding the tact and
talent Of the Senators who advocate this
bank note scheme, no one Of them has dared
to attempt to prove either Of these PROPOSE
tions. They simply tell US that the bank is
good. Where is the evidence, gentlemens
i We call on you for the evidence. Give US q
reasonable amount Of evidence on these
points, and we viii be exceedingly gratified.
Before can vote to retain this section in
the bill, | must know that this banking sys-
tenn is safe.
i Tsit safe? Let us examine its securities
Each branch is required, by the act Of incor
tporation, to deposit twelve and . half pc,
cent. n the amount Of its circulation il
stocks to secure its bill holders and othe,
, creditors. Our free banking system requires
that stock to the amount Of 10 per cent or
the amount of notes received for circulation
> shall be deposited for the security of its cir.
culation, and it is upon the same principl,
that the free banks have been established il
other States, and ask what is the reputa
/, ton of this class of bankss What has beer
I.t 4 -: Al. T. a. Wy