The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-01-23
OATES, BANKING BILLS.
The House Committee Hears Bis Ar
guments IN Their support.

The House Committee Hears Bis Ar
guments IN Their support.
WAsHISGroN, Jan. 22.-The House COM
mittes on banking and currency listened
for over an hour to-day to an argument by
representative Oates Of Alabama in sup
port Of two bills introduced in the House by
him and referred 70 the committee. One
o. these bills makes il lawful for any ma
tlonaI banking association to loan money
upon real estate secured by mortgage
20 an amount not exceeding 50
per cent. OF the cash value Of the property.
MIR. Oates said that the volume of the
national bank circulation was constantly
diminishing. The legislation Of congress
Tor years past has been restrictive of the
privileges Of national banks, ami the pre-
MUM on bonds was so high that after the
banks paid a tax Of per cent. on their cir
culatlon there was no profit thereon.
NO DANGER IN THE PRACTICE.
There was no danger to be feared In the
establishment Of the practice he advocated.
On the contrary, its effects would be bene-
1clal. II allowed to loan money on real
estate the banks would have larger source
OF income; more money being in circula-
ton would give employment to large
number OF people now idle, the value OF
property would be enhanced and the vol
ume Of circulation would be increased for
the reason that the banks would be able to
put tneir money 70 use now prohibited by
law. ga .bue I8s.a1.r
REPEAL OF THE TAX.
The other bill in favor OF which Mr..
oates argued was the one repeating the tax
OF 10 per cent. on the circulation of state
banking associations. provided there is
furnished as security for the redemption Of
such bills 70 per cent of solvent bonds Of
a and
principal purpose was to show that congress
had the power to enact the legislation pro-
posed III the bill He said that the
supreme court had decided that congress
had the right to impose 10 per cent. tax
because it had the right to supply currency
TO the people. The court gave congress ex-
elusive Jurisdiction over the question of
money. II, therefore, congress had ex-
elusive jurisdiction over the issue Of money,
Mr.. Oates held that it might surrender that
power by total repeal OF the
tax In question, or only partial repeal or
suspension. The bill under consideration
proposed to suspend the tax whenever any
state saw proper to supply currency to the
people. The court gave congress exclusive
jurisdiction over the question of money.
POWER OF CONGRESS.
II, therefore. congress had exclusive iuris-
d1ctlon over the issue Of money, Mr.. Oates
80 .--S1T - - ~ aulf e!4deI Vuae power Dy
total repeal of the tax in question or only
partial repeal or suspension. The bill under
consideration proposed to suspend the tax
whenever any state saw proper to adopt a
system on the basis suggested in its
provisions. Although the records Of
the treasury department showed that
there was at present a greater amount of
money in circulation than ever before, there
was never a time when, in the southern
states particularly, and in several Of the
western states, there was such a stringency
of money. The scarcity in the western
states had been relieved by profits reaped
from abundant crops. Mr.. Oates said that
If provision could be made for solvent
system Of state money, it would be home
money and less apt to float away from the
state