The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-26
Young Ohio Congressman by Theo-
dore TIltOn.
Congress Importuned to Enact a
National Bankrupt Law.
Mr.. Chandler's Ludicrous Performance at
the Arnold Lecture-Death of Mrs.
Rosecrans-Capital Notes.
NATIONAL BANK CIRCULATION.
No Legislation To Be Had Upon This I'M
portant Question.


portant Question.
Special to the Indianapolis Journal.
WASHINGTON, Dec, 25.-The tariff question
has absorbed so much public attention in
connection with the construction of the COM
mittee on ways and means that the import
ant question of providing bonds to be used
as a basis of circulation for national bank
notes has been entirely ignored. This ques-
ton, as we'll as that touching continuation
of the tax on bank circulation, will occupy
the attention of the committee on ways and
means and not banking and currency as is
generally believed. Upon these questions
majority of the ways and means COM
mittee will be almost as united
as upon that of the tariff and
it is doubtful, therefore, whether any legisla-
ton looking to meeting the necessities Of
banks lin this direction will be favorably
considered by Mr.. Morrison's committee.
The rapid redemption of three per cent.
bonds, which are largely held by banks to
secure their circulating notes, and the i'm
perative necessity that exists for legislation
to provide bonds for starting new banking
associations make this a question of the
highest Importance to business in every sec
ton of the country
1t is probable that the Senate committee
on finance will at an early day perfect a
measure of this kind and urge its passage
in the Senate.
Mr.. Buckner's Substitute for Bank Notes.
To the Western Associated Press.
WASHINGTON, Dec. 25-Mr. Buckner,
chairman of the committee on banking and
currency, is preparing bill to introduce
when Congress reconvenes which provides
for the issuing of treasury notes without
legal tender quality to take the place of the
bank notes going out of existence. The
purport of the measure is the same as the
bill introduced by Mr. Buckner at the first
session OF the last Congress
The proposition of Comptroller Knox
of tax on circulation, and allow
the banks to issue on the market
value, instead of par value is not favored by
the chairman of the banking and currency
committee, Mr. Buckner says if the plan
of Mr.. Knox is successful in avoiding a con-
traction of the circulation of bank notes, it
will afford but temporary relief, and in seven
wears from the present, when it becomes
necessary to begin redeeming AZ per cent
bonds, there will be recurrence of the pres
ent trouble. The national bank system can
not live without a national debt, and as
that debt is being wiped out
gradually and certainly, Mr.. Buckner is
OF the opinion that it is time to prepare for q
permanent circulation. He is not favorably
inclined to the removal of tax on circula-
ton giving as a reason that while in the
Eastern States where interest is low circula-
tion is not valuable, but the franchise of the
banks is valuable and worth all the govern
ment asks. In the Western States Mr.. Buck
ner says the franchises are still more valua-
BILE because the rates of interest are higher.
The originator of the proposed measure is
doubtful of probability of any legislation
upon the subject at the present session
owing to the diversity of opinion among the
members.
Mr.. Dingley, who heads the list of Repub-
lican members of the committee on banking
and currency, said tonight that the most
important question relating to national
banks was that providing for the stability of
the circulation. He thought but two of the
plans proposed to this end were practica ble
One provides for the issue of circulating
notes to an amount equal to 80 per cent of
the market value of the bonds deposited to
secure circulation, and after hasty exami-
nation of the list of members of the COM
mittee, he said that in his opinion this plan
was more likely to find favor with the COM
NIT e