New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-05-20
THE BANK BILL.

The passage of the Bank Charter bill by the
House, even with Objectionable features thrust
into it by amendment was to be earnestly de-
sired, There is reason to hope that the Sen
ate with time to consider the effect of each
provision of the bill, may modify or remove
its Objectionable clauses Moreover, there Is
reason to hope that the passage OF bill to
reduce taxation may make great change III
the position of the banks with regard to sur
render of circulation, before the measure has
to be acted on finally in the Senate An
anxious desire to get the bill out of the House
in some form and a belief that the Senate
will remedy its defects may account for the
readiness of some members to permit amend
ments which, on other grounds, should have
been strenuously resisted. But the fact, never
| tbeless. remains that the House has given its
| sanction to some provisions which, as THE
| TRIBUNE has pointed out, are likely to cause
serious trouble hereafter unless the situation
is materially changed by reduction of taxation
MIR. Randall appears to have been convinced
that his amendment requiring banks to
hold third of their capital in United States
bonds was unnecessary and injudicious, for he
assented to a substitute proposed by Mr.
Crapo, from which that and some other fea-
lures of his original proposition were omitted.
The amendment to make 1T compulsory that
National banks shall sue or be sued in State
courts was also set aside for another, which,
however, reaches nearly the same end in less
definite and ineligible way. The two TEA
lures which especially endanger the banking
system-the provision for suits in State courts
and the requirement that ninety days notice
shall be given before surrender of circulation
ought to receive especial attention in the Sen
ate the more because they were not fully dis
cussed in the House. If bank taxes are
reduced the latter provision will be
comparatively inn0cuOus. In any case,
| it is a useless concession to a most foolish
prejudice But the liability to suits in local
courts will prove more important matter, in
| large part of the country, and it should at
least be carefully guarded with respect to the
power of appeal whenever provisions of United
| States law are disregarded.
| Another amendment, which was adopted on
| Thursday, permits all banks having capital
not exceeding $4,000 to keep only $4,000
| in bonds on deposit. 1t is objected that this
would open the way for surrender of circula-
| ton to very large amount in the aggregate. 1t
WAS advocated on the ground that the existing
law. which requires all banks to have on de-
posit at least $50, 900, was unfair and OnerOus
to those small banks which could not profit
ably use circulation, and yet were obliged to
keep large proportion of their capital in
| bonds. The object of the amendment is
| equitable, and it cannot do nearly as much
| harm as other amendments which the House
| adopted almost without thought, but it should
nevertheless receive careful consideration III
the Senate. The banking system is too valu-
able and is III too critical position, to be
made the subject of ill-cOnsideTed experiments.