The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-07-04

Memorial Of the Presidents and Cashiers
of the state Banks Of New Orleans.
NEtu OuIrANs Apri1 1h 19Tg


of the state Banks Of New Orleans.
NEW ORLEANS, April 2G, 1878.
To the Honorable Senators and Representatives
In Congress for the State OF LOUISIANA
Washington. ID. O.:
Gentlemen -- Without desire to enter the
field of debate ON general topics connected
with the financial policy Of the governments
now discussed throughout the country, and
likely to occupy the attention OF Congress
for some time to come, we simply invite your
attention to the present law OF the ian0
which puts upon banks existing under State
charters O tax Of 10 per cent on circulating
notes, II issued by them.
Having learned that bill for the repeal Of
this tax has been already introduced IN f'ither
house by Senator Butler, of South Carolina,
and Representative Harris, Of Tennessee, we
deem 1t fitting moment to solicit your ear
nest cooperation with those advocating ies
passage.
This is a matter Of the deepest interest t0
the banks of the South, and most particular
ly OF our section. The banks we have the
honor to represent are all State banks, 20
whom the privilege of Issuing circulating
notes is denied by the tax Of 10 per cent, which
amounts to u prohibition and is deemed by
us onerOus and unjust, II not indeed, uncon~
stitutional All constitutions assert the .pTi1~
ciple OF equal taxation, and surely 10 - url~
just to tax @ State bank 10 per cent while the
national bank, our neighDOr, Is taxed Dub pee
cent on it's circulation.
We are we'll aware that the national bank
system was the policy OF the government uIi@
der which 1t was fnauguratsd, and TINS pro-
hibitOrY tax Of 10 per cent on State BANK cir
culatiOn was deemed necessary to establish
the system throughout the Union. Since. tt
has proved q success, and the purpose ZOE
which the tax was imposed has Deen accom-
plished, why should not the law be now re-
peaIed, and our State banks, most Of them e1-
listing prior to the Introduction OF the natOnaE
system, be- allowed O fair and equal privilege.
We do not propose TO Tecite the reasons Tor
preferring our State charter, nor to decry In
any manner the national system which is
agreeable to our neighb0rs, but we assert
that the Droverbially sound laws OF the state
of Louisiana, against over-issue OF bank cir-
culation and for the protection OF lts nolae3Is,
may well be relied upon to insure staDlltys
Besides the general government would derive
O handsome revenue from that when y now
sealed casket under this unequal and pro-
| hibitOry tax.
We are satisfied that the policy Of reducing
| the tax to the same as on the circulation OF
national banks would greatly tnure 10 tne ln~
| terest Of the commerce Of this city ana bhe
surrounding country; being, as you eiK1nooW,
| the commercial centre OF o number Of 6Jatess
the effect of allowing our banks the benenG Of
circulation would be In very great degree to
! furnish the desideratum SO urgently neeqeas
that is an elasticity in the currency which,
though only local, would greatly enhance th@
| facilities for moving our great staples during
| the fall and winter months, at which time Wa
| always have pressing demand Tor clTcula-
tion from the country, whence Ib Il0Ns 70 kile
city at later period. This pressing need for
| currency we have now to supply by calling or
the North, whence we have been compelled te
import it at heavy cost and risk, and at times
cannot obtain In quantities sufficient for cur
necessities, as yas the case in the fall OF 1878,
when the whole South was clamorous Tor
more currency.
There is no city In the Union whose conf
munity at large would derive so great bene-
fit from the repeal Of this tax as that OF New
Orleans, the metropolitan city Of your State
and the South, and we conclude, by most
earnestly soliciting your best efforts In Com
gress to afford us the desired relief by SO
amending the banking law as to permit CIR
cuIatiOn to State banks upon payment OF the
same tax as paid by national banks.
| Signed by presidents and cashiers of Citf-
zens' Bank OF Louisiana New Orleans Cana
and Banking Company, Southern Bank Me-
chanics' and Traders Bank, Peoples Bank
Bank Of Lafayette, Workingmen's Bank.