The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-17
Judge Poland Explains the Probable Effect o
the Mcpherson Bill-National Banks as
Governors in the Business World.
Belief that the House Will Not Impede
the Execution of the Mexican Treaty.
Secretary McCullOch Makes an Argument il
Favor of Modifying the Revenue Laws
in Behalf of the Whisky Men.
THE NATIONAL BANKS.


Judge Poland Thinks No Favorable Legfsla-
ton Can BE Expected from the Democrats.
Special to the Indianapolis journal.
WASHINGTON, Jan. 16-1 don't think the
Mcpherson or any other bill for the relief of
national banks will be passed by the House of
Representatives as long as that body is Demo
cratic" said Judge Poland, Of Vermont to-day.
Judge Poland has been in public life since 1889
as judge on the bench, United States senator
and congressman-is good lawyer, has been in
terested for many years in both national and
private banking, and is an excellent authority
upon the subject ''The Democratic party, ia
the first place, continued he, is pledged
against the whole system Of national banks and
is much more likely to wipe from the statute
books all laws on the subject than to extend or
expand them"
Would the Mcpherson bill stimulate the
banking business9" / asked.
ut would tend to. Now national banks are
given but 90 per cent circulation on the bonds
deposited in the Treasury, and the Mcpherson
bill would give them one hundred cents circuIa-
ton on each dollar deposited in bonds An in
crease of 10 per cent. on the circulatioa of the
national banks would put good many millions
of dollars at the disposal of the people. 1t
would give the banks more money to operate on;
they could loan at less rates. and the people
would be benefited proportionately.r
:'You think the Democratic party will abolish
national banksf
''Yes, if the Democrats get control of the Sem
ate, or can get bill through there The party
has long antagonized the national banking sys-
tenn"
Well is not the system growing unpopular,
anyway, among the nrasses!p
There is prejudice against national banking
throughout the South and West In those sec
tions thore is q strong greenback tincture.
Wherever tAcse is any dissa tisfaetion with the
currency in any form, national banks are un-
popular IN the East and most Northern States
it is different Most people prefer the security
of national banks, although l cannot say they
are the safest always The laws hold the di-
rectors Of national bank liable; also the stock
holders. There no general laws governing
private banks. They are amenable to State
laws"
''What are the advantages Of uationall,ankw
There are but few at this time The law Civ
ing the national bank advantage in suing in the
United States courts is repealed To the banker
the only advantage is in receiving the interest on
United States bonds deposited for circulation.
Since the bonds mostly used are threes,
and they are liable to be called
in at any time the interest advantage
is about overcome. If banker buys the fours
he must pay about twenty five cents premium, and
if he buys tie threes he is running risk of hav-
ing them called in at any time. 1t looks to me
as though the people would suffer more by refus-
ing aid to national banks than the bankers
would"
IF the national banks were abolished, would
there not be system of wild cat banks againp
THE universal adoption of the private bank
ing system, presume, would have the effect of
creating many banks that would be unreliable.
AT present the private banks are very good.
Their dealings much on the order of the ma
tional banks and they are very respectable and
generally reliable The national banks keep all
banking level They are the governors and regu-
late the business"
Judge Poland, who has been interested in ma
tioral banking in Vermont, is now interested in
private banking out West, probably in Iowa. So
far as the naked eye is concerned there has been
no discernible work done by the national
bankers for the Mcpherson bill, and it is i'm
probable that it will ever become law.
1t is believed in congressional circles
that the House will not do anything on the sub
ject except towards the repeal of the national
banking laws. Probably that will not be done,
however, until after the tariff has been revised
and other matters accomplished which will be
inclined to affect finance and commerce. And
maybe the banking laws will not be repealed at
all. New York is strong State for national
banks, and pressure would be brought upon MI.
Cleveland to desist from anything of the kiud
Then there is pronounced majority in th .
Senate against it. The House, however would
likely give very large majority for it, ard it IS
almost time wasted to try to change its views or
the subject