Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-06

plicitly through the press, and at once. Upon
your answer depends the action of
MANY VOTERS.
Colonel Burch ut lsalIatin.

colonel burcn at @dfAhtAn-
GAIIATIN, July 1.-Colonel Burch spoke
here to-day to a very large and remarkably
attentive audience. In his speech he covered
the same grounds that were embraced in his
letter of last week. Upon the practicability
of re-establishing State bank he was ques-
toned, and that portion of his speech | give
you as fully as | can before the departure of
the train, He said
''The law Of congress imposing a tax of
ten per cent. on State bank circulation is a
stumbling block in the way of establishing
State banks; it must be removed. There are
bills now pending in both houses of con-
gress to repeal that tax, and, am informed,
with great hopes of their passage and the
repeal of the tax before the fourth
of March next. One of those bills
was introduced by Governor Harris in
the senate; another by Senator Butler,
of South Carolina, and one by General Whit
thorne. The New York Times, the leading
Republican paper in the east, Is now earnestly
advocating the repeal OF this tax. The pros
poets are bright for it. If the present con
gress should not repeal it, let us re-establish
the bank and test the consttutionallty of this
prohlbitory imposition, and keep up the agi-
tation until it is abolished by legislation or
judicial decision. Some ask, is the re estab-
lishment of this bank practicable, even after
the repeal of this tax? If it is not, why have
the people been demanding the repeal of the
ton? Why have our boards of trade and
chambers of commerce joined In this de-
mand? Why have bills been introduced in
both houses of congress to repeal this tax? If
the re-establishment of the bank is not prac-
ticable after the repeal of the tax on circula-
ton, then have we all been engaged in max
ing demands upon congress which were not
only idle, but foolish. Those who tell US that
the tax on circulation ought to be repealed,
and at the same time speak OF the lmpractl-
cabiity of re-establishing the bank, remind
me of the mother who gave her darling
daughter permission to go out to swim. You
remember the quatrain:
Mother may go out to swim?
Yes, my darling daughter;
Hang your clothes on a hickory limb,
But don't go near the water.
l am asked how would go about estab-
fishing the bank. The legislature meets the
first Monday in next January. A bill for
convention to change the constitution should
b. passed in the first two weeks of the ses-
sion. The election for members to that con-
vention should be had thirty days after the
passage of the bill, about the middle of Feb
ruary. The convention should assemble in
ten days after the election, in the latter part
of February. 1t ought to make the necessa-
ry change in the constitution In two or three
weeks, so that all this would be accomplished
by the middle or last of March. This change
need not be referred to the people, for if dele
gates were elected for the purpose of making
this amendment to the constitution, 1t would
be unnecessary to submit that to the people
when it was accomplished Further leglsla-
ton would be needed. To effect this let the
legislature, after it had been In session a
month, adjourn or take recess until after
the action of the convention on the amend
ment to the constitution. They could then
return to their work, and do all that was
necessary to be done in the remainder of the
seventy five days which is allotted to them
for. their session. These are matters of de-
tail, which might be more or less changed In
the Iwisdom of the legislature. But when
you get your bank established, what are
you goings to bank on? This question was
asked me the other day by national bank
man. | said: will answer your question by
asking you another. What do you bank on?
He replied: We bank on government bonds.
Yes, SAID |, the national banking law requires
you TO put up government bonds to secure
your circulation-one hundred thousand dol
lars In bonds for every ninety thousand dol
lars in circulation. You may have a circu-
lation OF ninety thousand dollars and half
million to three quarters of deposits for which
there is no security whatever, except what
there may be in the notes you have discount
ed The State bank would have the same
security for its deposits, with the additional
security for Its circulation that it will be re-
ceivable for all taxes and other dues to the
State. MIR. Calhoun maintained that State
currency, receivable for taxes and all dues to
the State to the extent of four or five dollars
for every one of revenue going to the State,
or in other words, that an annual income to
the State from its revenues OF one million
dollars would easily float such currency to
the extent of four or five millions. But if this
is not satisfactory banking capital, authorize
the issuance of bonds by the bank pledging
the profits of the bank, first for the payment
Of fba into no ckoh h
ment of sinking fund, and there will be no
difficulty in selling enough to raise all the
capital the bank will need until it establish
es a credit of its own upon which to oper-
ate These would be bonds of the bank as
of any other State corporation upon which
and their coupons the bank could be sued.
All constitutional questions about suing
State would thus be avoided. The officers of
the bank will see to the protection of its
credit by the prompt payment of the interest
on its bonds. The old bank had two million
five hundred thousand dollars of bonds,
which it was authorized to sell in order to
give it banking capital. But before the
cashier could get to New York and sell half
of these he was stopped by the president and
directors, they telling him that they had
credit enough to carry on their banking ope-
rations without selling any more of the bonds.
He only sold one million dollars of the bonds
to establish the old bank. These, too, are
matters of detail which will be wisely at
tended to when the State has determined to
establish the bank. Then the best banking
capacity of the State will be invoked, and
such charter will be granted as will insure
success to the bank and prosperity to the
people. / have already conferred with some
of the oldest and most successful financiers
of the State, and they entertain no doubt of
the practicabilty and. feasibility of the sue
cessful establishment of State bank"