The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12

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might be ven to inquire We .s,i had sss p9ss 70
almost deemed hereticai TO question the extent o.
sr There are many wnca of ~" scoD ~
ongress such as the right OF State taxation certain
tate laws, &c. The Supreme Court decided In case Ia
aryland thar the United States might establish bank
nth branches and state could not tax them; and in a
se In Kentucky the decided that local banks
hem That right must certainly be Independent Of the
General government; and II State could not tax United
ates Institution Ou s ses ne genera 60
stence. They might as well undertake to tax the
chools and colleges Of New England so heavily as 10
ompe them TO close He had great doubts OF the pro-
riety ohe United States becoming responsible for
exemption Of these bills The United States at time
Established bank with capital of thirty i've mill rs;
nd that bank was only closed because regarded
dangerous political engine, which could DO used by
arty In power: Blu. this bill proposed to establish
How tho Secretary Of the Treasury establish three
thousand banks throughout the country mostly under
ais control. Now, II the old United States Bank fur
ished well grounded approximations OF being used as
dangerous political engine what could be said Of tho pro
urnlshed with all this power, and should choose to
!se IT, he would be most bunging politician
me Of war no nation was expected pay all its expenses
went along u paid the interest on lts debt, that
sss all that was ever expected ana tnat We wore now
proposed plan was any better than the plan
urs9ng Of issuing paper which circulated among the
which would 60 out among the people without any
no government 70 place u In circulation, II proposed
establish all these banks and pay them twelve millions
Der annum for circulating these notes. That was the
ain English OF the scheme. In regard TO the claim that
81. S was To- sstash Uniform currency he coutsndsd
he law as TO regulate the circulate of the blood.
n fonmer times, when great statesmen undertook to
establish paper currency they thought Of putting
upon any other ground han being redeemable
specie The only basis upon which ihey pretended to
ssuo paper money from its immediate relation to
that which the world regarded ms PEI manent value
When the United States Bank established 1t
Proposed to ennsusn state ate banks That with other
heso htcr days. He commended that the proposed tax OF
cent on circulation equal to three four per
ent on their capital which would necessarily the
banks to suspend operations. Ii tho manufacturer
taxed contage on'his productions he could place
the price Of his goods, and tho burden would not
all on him solely 8ut the banks could do
20 such thing. Ho contendcd that there would
banns sven the ohers were
hey would have TO invest hundred thousand dollars
An United states bonds at fixed value FOR twenty years.
and they could have ninety thousand dollars for crcul
hon. But they must keep twcn Avc per their
vaults They would get four thousand dolIarc the
thousand dollars in circulation There would be
hange and that all they could make without cheat
kept in their vaults would be three thousand eight hun
red dollars, leaving only l,te five thousand dol
lars He considered II very unxse at time like this,
70 put In operation al experiment OF this kind destroying
local banks and bringing ruin OH the people. Without
she assistance Of the banks the State OF Vermont could
mot have pnced her regiments in the field.
Mr. snERMAS, rep OF Ohio, thought that under this
bill the banks could make reasonable profit. But IL not
aud nducemont could be oGe ed to organize thcse
banks. then this whole scheme fall the ground
and no harm would be DONE The honorable from
Vermont had argued that the Dted States would receive
40 benefit from this BILL But suppose could induce
The banks OF the country to withdraw about hundred
mious Of their circulation, and invest ia United States
bonds aud take Instead this circulation, IL would
Immediately create demand for bonds to large extent
over the real demand Of hundred millions. The
United States would get the benefit III banks would
DO useful depostares and convenient for tho csIlec
ol oil debts He claimed that the bill would not destroy
fhe local banks but they might. without any difficulty.
,emo under tho operation OF the bill. lie knew tht
1usny capitalists ready 30 into this business OF
banking aGd A thought that in SIX mouths at least ny
|see memo OF the dangers feared by the Senator but
Thought this measure calculated TO maintain the
land preserve the nationality the government.
n Mr. coLAsEK replied al some LENGTH reair,n.ng the
positions he liad taken
Mr.. omAxpIER, (rep) Of Mich thought, If there was
|anythng in this bill 1t WINS goid There might not be
|much doumnd for these banks in tho Iast but
I'm tho West there WOULD be, their circulation was
with better currency than they had. Tho quest
|ol carrying on this war was a question Of france
lon tho war. iie though, il tho du.y u Of '' ,ho
government TO protect its currency and tax
banks II necessary. This was aqueston--whether we
should project few banks in tho Fast protect this
great nation. lie would sacrifice the banks, and nsgcrs
and everything else, 70 save this nation. they II the
West did not want the notes OF Eastern banks They pre-
eorred greenbacks.
Mr. Anso.n, (rEp3 Of r. !, oIsred an amendment to
designated in tho bill He said that city ought to be
fcooynz rs one OF the commerce. cities OF the country
u the second city in regard the number OF its
banks and the fourth city in regard TO its capital.
Adopted.
On motion Of Mr.. SHERMAN Chicago and st. Louis were
also inserted.
Mr.. POWELL, (opp.) Of KY, offered an amendment,
xoQurng the banks, In twelve months aftor the 10
closed 20 redeem ATTY per cent OF thor circulation In
specie mud in two yoars u redeem the whole Of IL.
Rcicccd-H against 80
Mr.. How AND, (rep) Of Mich, OPP sed the bill, as
wisc and mpoitic as tending 10 ocd tho country with
currency, tn make the local banks
and To create politicG discussion.
Messrs. CARiLy, (Uni0n) Of Va, andlDAys (opp) OF
KY, al % spoke against the b ].
Mr.. WILSON, (rep) Of Mass contended that tho bill
was not on the banks He vas sorry TO hear the
old prcdc ore OF ruin made They had been often made,
and proved !nse predictots. tie dd believe that
tho passage or The bill would maze Any disturbance all
In the C nmcrcia interests {" his state.
ton he should hold that had right ~ issue pa
mon'y Bat the pract o the country and the do
csions The courts ID bec the other way, and tho
banks Gro organized, and nj ths beginning OF the
our cur oLcy practically the notes OF these banks
watch, vixen they suspended: irredee mlb.e Iapcr
currency te believed that the government could at
this iuo eturn gold and sii,e currency. The go
vernmcnt must CONTROL IN way, the currency Of
the cobDtry aud must all the banks OF the country
TO food the country and conro the currency.
Mr.. PnwEiL moved to adjourn
re cctod-ycas Z, nays IS
The senate then adjourned, with the understanding
that a should be taken at one O'Clock to
House Of Representatives.
WISH vsroy Feb. IL, 1893