New-York tribune., 1882-04-19
RINK-H1TERS.

The Uouse refused on Monday to fix any day
for the consideration of the bill to provide for
renewal of bank charters. Therein the House
was unhappily controlled by stupid minority,
who numbered more than One-third OF the
members voting, and were Democrats and
Greepback men. With the Republican ma
iority, twenty seven Democratic members
voted for the bill, and they deserve the more
credit because they were opposed by about
tbr ee -fourths of their party then present and
voting. The excuse given for the defeat OF the
motion is that the Democrats desire to get an
amendment adopted, by which the National
banks may be prevented from contracting
their circulation. The amendment proposed,
though offered by Senator Hawley, is partcu-
larly well calculated to make the National
banking system a failure. 1t may be granted
that the amendment would have different
result il the bill TO remove taxation from the
| National banks should also be passed In that
| case the House would have reason to regret that
| il had not acted upon the measure proposed
| long ago by THE TRIBUNE, namely, to issue
new three per cent bonds for banking purposes,
with the express stipulation that any circulation
based upon such bonds should be exempted
| from taxation.
The condition imposed by the contemplated
| amendment is not calculated to improve the
efficiency of the banking system. 1t would
greatly restrict the expansion of that system,
| bv proyiding that not more than $5,OOO,OOO OF
| the bank circulation should be retired in any
| month. When men are hesitating whether to
| issue new circulation on the terms proposed,
The restriction as to retirement will be found
important. Not few would gladly issue bills,
having the assurance of the present law that
they could retire circulation at pleasure if it
should prove Improbable, who would not con-
sent to put out new circulation under the re-
strictions proposed. The amendment, there
fore. is calculated to defeat the bill. Not un-
naturally the Democrats who vote at all vote
| unanimously to afix this amendment to the
| measure. For that Southern Democrat was
right who attributed the zeal of Democrats to
bring about the destruction of the National
bank system to their intense feeling III respect
| TO the aid given by the National banks to the
| Union cause during and Immediately after the
war;
Hence Democratic members of Congress
assume all the responsibility for the failure of
the pending Bank bill Perhaps not one in ten
of them has the least idea how great that re-
sponsibility may be. Before the end of next
February, 392 bank charters expire. Seeing
the temper of this Congress, these banks
would be most foolishly managed If they
should not make ready to withdraw their cir
culation before that date. Considering fnan-
cial needs, they would naturally make the
needful contraction during the latter part of
the present year. They know that majority
of Congress is disposed to act wisely, but they
know also that minority of eighty mine mem
bers has now declared its intention to prevent
any consideration of the pending bill. Under
the rules of the House, minority of that size
can stop legislation almost indefinitely. These
banks, therefore, will hardly be disposed TO
await the possible action of Congress during
the first few weeks of hurried session.
The practical effect of their preparations has
been fully explained by Mr. Crapo and other
members of the House. They have SOS, 900, 900
of notes outstanding, and would therefore be
Obliged to deposit that sum i'll legal-tenders
prior to the expiration OF their old charters.
They must raise money for that purpose, by the
calling of loans and they now have outstand-
ing loans amounting to about $l55, 900, 900.
The contraction of loans and the lOcking-u of
money will produce very serious effects, and
for these the Democrats in the House Will be
entirely responsible. 1t will not serve them
much to tell the country that they would have
voted for the bill with an amendment. By
tbeir votes, they cut of all possibility of con-
sidering bill or amendment either. The coun-