The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-06-29
STATE BANK CIRCULATION.

Senator Hill says he will, In the next ses
sion OF Congress, champion q bill permitting
STATES ana corporations to Issue paper money
| -lCourier Journal.
Senator Hill does not say anything of the
kind, What he says is that he will champion
the repeal of the 10 per cent tax on State
bank circulation and If Senator Hill carries
out his promise he will do, perhaps, the wisest
thing he has done in all his life. But there Is
q vast difference between this and the Issue OF
paper money by the States. The purpose OF
Senator Hill Is to allow banks organized I'M
der the banking laws Of the States to issue
money precisely as the national banks do
now, and to abolish these institutions and
confine the issue of the United States to gold
and silver coin. This is the idea long ago adj
vanced by the DEMOCRAT, and which has been
since taken up by many Northern journals.
It was embodied In bill offered in the Senate
at the late session OF Congress by Gen But
Ter, Of South Carolina, but which was lost
sight Of between the greenback mania of the
Western Democrats and the frenzied efforts
of the Eastern men to reduce the currency to
a gold basis In the interests Of the gold rings
and money monopolists Of the East. The re-
State banks would Immediately revive those
institutions under the laws Of the different
States. In Louisiana our banking laws are
most admirable. and under their operation be-
fore the war the issue of Louisiana banks
commanded q percentage In gold even in Can
ada. This is sufficient proof Of the security
of such institutions.
There were, Senator Hill recently said In an
Interview, so many important questions be-
fore the late Congress that this body did not
have time to thoroughly investigate this State
bank circulation question; but he promised
that 1t would be investigated and solved at
the coming session, as he had determined to
make 1t leading issue, and to devote him
self almost wholly to it's championship.
One of the main causes of the failure of |
Senator Buffers bill was the fact that its |
merits and purposes were not sufficiently |
known throughout the country. 1t required |
more than years preliminary discussion of
the silver bill to persuade Congress to pass It,
The country has suffered SO much from hasty
and bad financial legislation that it will op- I
pose any measure, the merits OF which are
not clearly demonstrated. 1t is only few
months ago that Senator Butler and some
Jwo or three Southern papers, the DEMOCRAT
among them, took up this question: and
showed the necessity and justice of repeating
he tax on State bank calculations. Since
hen, thousands of converts have been won
,ver to the cause of State banks, among them
he New York Times, Herald Bulletin, and a
lost of New England papers, all OF which
,apers have deliberately discussed this
question. 1t may, therefore, be con-
idered fairly before the country, and
! Is likely that by the next session Of Con-
ress the people will be thoroughly posted on
he matter of State banks and their repre-
prepared to act and vote In accord =
nee with their views. The South may be .
Dnsidered already as solid on this question
9th the New York Times and Herald corre-
oondents have interviewed Southern repre- .
,ntatives and find them unanimously in =
Lvor Of this measure. The East leans to-
ards State banks, particularly New York
nd Massachusetts. 1t Is unanimous and en-
hattie, however, in the opinion that the 10 =
Or cent tax on circulation Is Illegal and I'M :
1t Is the West that has been,
lat Is silent on this question. But few =
estern papers have even considered 1t. In 4"
me of the new Western States, In the early - =.
Id wild pioneer days, many persons suffered =. -,
Om wildcat money; and this fact several -
estern papers make ground for opposing y
ate banks. The West, therefore, may be o.
nsidered as neutral, II not unfriendly, to ~ ~
is proposed Legislation from ignorance of "a
purpose and intent, most Of the Western
ates being Of too recent creation to have n
er enjoyed the advantages of State banks. a.
1t is evident that II the supporters of Sena- 8
r Buffers bill wish to succeed, they must ~
.itate this question and bring it prominently Il
fore the people. Ii this Is done, there Is no y
ason why the next Congress should not u u
Olish this unconstitutional and prohibitive +,
X. The question Is now In the hands OF en- IL
getic men. Senator Hill has declared that o
far as he is concerned he will make this the r.
aiding issue in Congress; that is, that he ii
Ill devote his greatest attention to it. Gen.
utter, of South Carolina has similarly de- q
AIRED 1t to be his intention to champion this q
easure, and Messrs. Ransom and Lamar are n
so pledged to work for the success Of State =
INKS.
The contest over this measure promises to a
much less bitter and severe than that over II
q reconciliation of silver. The present
usade Is, indeed, but continuation of that @
sht, movement toward restoring the b
untry financially to what 1t was In the pros y
,rous days that preceded the war.