The Durham daily globe. (Durham, N.C.) 1889-1894, 1893-12-21
NO STATE BANK CURRENCY.

DOSCo lSPNoA
state bank issues warrants the conclusion
that there Is not the slightest danger OF
congress restoring to state banks the priv
ilege OF issuing currency. This Is given
upon the authority OF Mr.. SPRINGER
chairman OF the house committee on
banking and currency, who undoubtedly
knows as we'll as any other man IN con-
grcss the sentiment on this subject. A
bin to repeal the tax will, it is said, prob
ably be reported to the house, but even
this is not assured in the opinion OF MR.
and he is quoted as saying
that even if reported it would be as good
az dead The proposition TO federallze
state bank issues has been abandoned, be-
ing manifestly ~impracticable and in any
event unacceptable to the radical adVc-
Gates of such issues, who insist that the
federal government should not interfere
in anv way with the states in this matter,
claiming that they have a constitutional
right 10 authorize banks to issue cur
rency which cannot be restricted or con-
trolled by congress. These people main
tain, Notwithstanding the opinion OF the
supreme court to the contrary, that the
imposition of the tax on state bank issues
was without constitutional authority and
nothing will be acceptable TO them but
the unconditional repeal Of the tax. AS
MR.. SPRINGER says, a proposition OF this
kind would be opposed by the practically
unanimous vote of the representatives In
congress from the northern states. The
chairman of the banking and currency
committee Is also authority for the state
ment that PRESIDENT CLEVELAND does
not look with favor upon the proposal to
repeal the tax, and expresses the opinion
that if a bill were passed by congress for
| this purpose it would encounter the ex-
e~cutive veto. The disposition seems to
be to let the question be disposed Of in
congress, and undoubtedly this is the
best course in order to put an effective
quietus to the agitation.
When this issue is disposed Of, as it
seems likely to be within a short time,
it will become an interesting question as
to what new policy the democrats Will
propose for obtaining an additional sup
ply of currency. 1t appears that the
chairman of the house banking aud
currency committee has not been idle,
and he promises that as soon as he
house passes the tariff bill he will have
ready to report a measure dealing with
security for national bank circulation.
From the brief reference made to the
character of this proposed bill it is not
altogether an original policy that is con
templated. 1t will provide that the gov
eminent shall accept gilt-edged state,
county and municipal bonds as security
for national bank circulation, and as the
| supply Of such bonds is almost boundless
and is constantly being added to, it IS
| argued that their use by the banks as a
basis of circulation would give the coun-
try an elastic currency without impair
ing its quality. Inasmuch as the national
banks cannot for many years longer have
government bonds as security for their
circulation and there is a strong pOpu
lar hostility to the government issuing
more bonds, If the national system is
to be maintained as at present, perhaps
there is no better plan for doing this
than Mr.. SPRINGER suggests. But it
would need TO be fortified by the strong
est possible safeguards in order to main
tain public confidence in the bank cur
rency. There is a very considerable
element in the present congress, largely
composed Of members Of the dominsnt
party, which is implacably hostile to the
national banks and would vigorously
oppose such a measure as the chairman
OF the banking and currency committee
says will be reported. 1t is therefore
predetermined whether this plan OF Civ
ing the country an elastic currency
could be carried through congress
PURGE TAs PENSION ROLLS.
From CIev, lands Message