New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-05-03
RANK CHdRTERS.

The House has at last taken a wise step.
Nav 9 has been fixed for the consideration OF
the bill to extend bank charters, and this was
done by vote of $50 yeas to 50 nays-more
than the two-thirds required for suspension OF
| the rules. If it could be inferred that those
who supported the motion would also support
! the bill, there would be cause for great con-
graduation. But it is known that some of the
Affirmative votes were cast by members who
| have been strongly opposed to the measure
and probably still wish it's defeat, though they
do not venture to resist the decided manifesto
tons of opinion by their constituents, and
especially by men of commercial or financial
interests. Democratic politicians OF this SORT
would like to please the preJudices of com
| munistic OF UniOn-hating mob, bnt do not dare
| to disregard the wishes of intelligent and in
| huential men of business. They have voted re-
| peatedly to kill the bill, but have been met
with q storm of protest from intelligent constit-
uents. Their secret hope is now that the meas
| IRE may be beaten under cover of some dis
| pute about amendments, and it is not unlikely
| that nearly all the Democratic members will
vote for amendments calculated to cripple or
weaken the banking system, as they have done
more than once already.
The encouraging feature in the case is that
the Republicans are substantially united III sup
port of this measure, without essential change,
and they are reinforced by few of the Demo-
cats. Previous votes have indicated that there
was a positive majority in favor of the bill
without change. Now that day has been
fixed for consideration of the BILL it can be
| passed in the most desirable form if the
Int fhar a1ty
against all Objectionable amendments. In the
| arrangement to secure consideration of the
measure, its friends only stipulated that proper
| amendments might be offered and brought to a
vote, but did not agree, as it is understood, to
support them. Their agreement will be car
ried out faithfully if they patiently and firmly
vote down amendments and pass the bill as it
| came from the committee.
For this course there seems to be good reason
| in the fact that changes i'll the franchise OF the
| banks, possibly involving an important cOntrac-
| ton of the circulation, cannot be wisely made
until it is known whether the bill to repeal the
| tax on deposits is To be passed. As matters
now stand, the continuance of the banking
system may depend largely upon change in
| the taxes which banking property has to bear.
! 1t was demonstrated two years ago by Con-
troler Knox that the National banks, paying
taxes at the present rate, could scarcely realize
any profit Oh circulation if obliged to hold as
security bonds yielding only per cent on their
cost. The four per cent bonds have now ad-
vanced so far that they yield little more than
per cent on market value, and the amount Of
four per cents held for circulation has been
diminishing. But the banks can hardly afford
| to take the three and half per cents, because
these bonds are being SC rapidly redeemed and
are probably so shOrt-hved. Hence there has
been decrease of about $3,O00,000 in the
| circulation within the past month. If the
privileges and the taxes of the banks remain rs
| they are now, this decrease seems likely to con-
tinue. Any imposition of additional burdens
or withdrawal of privileges enjoyed would tend
to make the surrender of circulation more
rapid Possibly the scale might be so de-
cidedly turned by change comparatively IN