The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-08-14
,adwe pue,ner's views Before the
- az convention "a Niagara.

us..n erss convention "a Niagara.
C.no,cssrnan A. n. Buckuer, OF Missouri,
,yho g a. norm az Fredericksburg, Va, In
60, rn,,nl ca,Ior, IN regard 10 bank taxation.
ss,d' g Primarily this taxation affects banks
and bankers. but, like all other modes ana
forms NJ taxation, II ultimately bears on
nroduciion. JJnfjl within the last few years
The General Government has not been 10 a.
condition TO remit the taxes imposed on
banks snd banking capital and deposlts.
This can be affirmed no longer, and the
time has arrived when the petty annoyance
OF the tax on checks aud deposhs, oiten
duplicated and even quadrupled, snouiu DO
removed. and | doubt not they WIN DC.
The rapidity with which the puOnc deol y
being redeemed, and the near approacn
of the period when the charters OF
many Of the national banks WIN e4-
pire, cannot but give unusual PIouh-
nenee IN YOUR discussions on the ques-
,Ion NJ % the future currency OF the coun-
tryv or the 5 aud per cent. bonds SUD-
iect TO redemption during the current year
sbout S575. 900 600 have been EXTENDED at
"a ner cent. interest and redeemaDlc al Tue
nleasure OF the Government. The remainder
~ these bonds will probably be paid before
ihe lat OF January next from incoming sur
nIns revenues, 50 that at that date the lu-
terest. hearing debt will consist OF about
Al .565. OO0, 900, the annual interest OF wDicn
viii be sci ,Ol5, 900. II my premises are not
at fault we are, ps the law now STANDS,
nearing the almost certain contingency Oh
contraction OF the credit circulation Of from
S150. OOO. 900 to $3.50, 900, 900 within the next
FIVE wears growing out OF the reasonable
certainty that we shall be able to liquidate
at least 300, 900, 900 Of the principal OF tue
nublic debt annually during that period.
I am assuming that owing TO the present
state OF public sentiment as TO the tarln
and the taxation OF wbskey ana TO-
bacco, and the condition ana rclali'o
strength OF the parties in Congress, mere
will be no reduction in taxation luat VIII
not be met by increased consumption auu
by the diminution OF the annual interest,"
charge OF the Government. Are the pTonts
Of national banking such as TO justify them
in having three and four years interest I'D
advance TO secure basis for circulation
Their only alternative is TO 90 into lquida'
tion. or to make an investment in or ~
ncr cents. seli.interest forbids the latter,
and the law VIII compel the former. WIN
In two years many Of the charters OF
the first banks organized under the
national.bank act will expire. waving
ALI legal questions as 10 their power 10 re-
orpaniZe for another period OF twenty
wears. either under the old or 4 new
name, and looking into the fulure OF
the next three or four years, when the
"a Der cents are being rapidly PAID
and the period approaching when tne 49
ner cents will become rcdeemable, ana con-
seonently marketable at diminished pre-
MUM. how many Of these banks VIII ueen
il In the interest Of their stockholders TO
demand renewal Of their corporate exist
enceY II this circulation is based on per
cents, will they not be tempted to sell thelr
bonds and give their shareholders the pen
eft Of the high premium? Aud II on ~
pcr cents. will they consent ~ take re-
newal OF their charters with the TACT
staring them in the face that these
bonds will soon begin to bear less
and less premium as the day OF their
redemption approaches, and when that DAY
arrives. their payment be delayed but a
few wears at most? The indiss1lubllliy OF
the Union is not more assured lhan Is the
determination OF the taxpayers OF the
United States TO discharge the pubic deDt
as rapidly a their resources will permit. IL
must be obvious that these anticipdtlOns OF
danger to the monetary and material inter-
ests Of the country are not the creatures OF
"A premature tUu iboabS didi hi' " "'''N
may be the individual opinion or desire OF
the members Of your Association as 10 what
ought to be The future credit circulation,
nothing in the future seems to be more GER
tain than that our choice must be restricted
10 another experiment with the State-bank
system, to Il nIlioaal bank organized on the
stock principle, or to the issue and control
by the General Government OF all the paper
circulation. In conclusion, permit me to
submit the following proposition for dis
cussion: tine credit circulation to consist
OF a new issue OF treasury notes as suDSti-
tute for the outstanding legal-tender and
bank.nO circulation, with an ample com
reserve for their redemption, and no otheI
paper circulation to be Issued either by au-
tbority OF The State OF General Government
except certificates for bullion deposited IN
the Treasury. redeemable also in coin, and
having like functions with the treasury
notes."