The Indianapolis journal., 1892-01-25
CURE FOB THESILyER CRAZE
Representative Harter's Scheme for
Building Up State Banking Systems.
Thinks It Would Be Better for the People than
Free Coinsge-Justice Bradley's Remains
Taken to Newark, n. j., for Burial.
The Ohioan Thinks His Measure Would BE
Better than Free Coinage.

The Ohioan Thinks His Measure Would Be
Better than Free Coinage.
Special 10 the Indianapolis Journal
WASHINGTON, Jan. 24.-Representative
Harter. of Ohio, in an interview upon the
bill introduced in the House by him to in
crease the circulating medium and to ex-
tend the national banking system. says in
explanation of the measure: Briefly, it
provides for q repeal of the present Pc
culiar and prohibitory tax upon State note
circulation and fixes the same rate of tax
alton upon notes of the banks issued under
State authority as is paid upon national
bank notes.
"All are familiar" be says. with the rea-
sons for placing the present very extraor-
binary tax upon State bank circulation.
1t was not to raise revenue. On the con-
trary, it was designed to force ont of exist
enco under State laws and into the nation
al system all banks which desired TO exer-
else the function of keeping notes of their
own lssue in ejaculation. lt was perfectly
successful in this, and by bringing the
banks into the national system. created ON
enormous demand for government bonds,
and made our banking sy stem from one end
of the country to the other the support and
right arm of the public credit"
What will the result beP
This change. if il becomes law, will in
sure large increase of good money in the
main. It must be very good. indeed. to
have any general circulation, and Unless 1t
is made as good and kept equal to national
bank notes it will never enter into general
circulation or get much outside of the
States In which it is issued. In this latter
case it will prove the kind of money tlocal)
which the West and South ask for. and
which the unlimited coinage of silver
would never secure for them. 1t will be q
kind of money which banks can issue only
upon express State authority, and in nine
out of ten cases such security will be re-
qulred, and such restrictions Will be placed
about 1t, as to make IL promptly redeemable
ct all times in United States legal-tender
money. Every State will recognize the
the existence of State banks alon gside the
national banks.
''The results of my bill."> he continued.
will be immeasurably safer than free
coinage. for the proposed 421-graln sill
yer dollar is to have q legal-tender value
OF 100 cents and tho farmer, the working
man, the savings-bank depositor. the PEN
woman Of fixed income. and, indeed. nine
ty-nine ont of every hundred must tako
1t for 100 cents. The bank note must be
kept equal TO gold or silver or it will not be
accepted at it's face value or circulate sue
cessfully. With the bill referred to q law,
the problem of how to perpetuste and ex-
pand the national banking system becomes
easy aud the way clear. for 1T is no longer
hampered by the necessity for providin g
for State bank circulation, and it can be
treated by itself and upon it's own merits.
BY the passage of the bill it will also do
away with the prejudice against the ma
tionai sy STEM"