New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-06
NEXT. STATE BANhN.

That something in the nature OF expansion
of paper currency WAS promised on behalf Oh
the Administration. in order to secure passage
CT the Silver bill in the House. has been sIlS
pec.cd from the number and character OF the
converts" and the language used by them
The speech of Senator VOORHEES, WAS in itself
enough to indicate that the substitution OF
state for National banks was expected Now
il is stated b., "Thc Ncw-I0,'; sun. with
much laiticulart> Of detail, that the Pr, sideni
himself was present at an important conference
on Saturday. which there was much effort 90
keen secret and that the conference was called
by the President who there submitted ms
views to the Sccretal! If the TrcaSui.. the
Spe aker of the House and some prominent
CongreSsmea. No one will be surprised u
hear that the President favored a limitation
or restriction Of the formal demand Oh MS
party for repeal of the tax Oh state bank ISSUES.
1t has been known for some time that PieSI-
dent Cleveland was engaged in obtaining the
opinions Of bankers here and in other cities
on this subject and strong efforts were beng
made 10 induce them 10 favor some measure
abolishing the National banking system But
it was equally we'll known that the bankers
consulted were well nigh unanimous IN their
decided opposition t. the monetaf! revolution
,,oposed hy the Democratic platform. The!
realized fully that unless control and super
vision Of banks Of issue could be Kept in the
hands of one central and National authority.
disasters of the gfave>t character could be cN-
pected IT appears from The sun that these
opinions were set forth in letters from bankers
70 the President, recommending in place OF
the proposed repeal of the tax on state bank
issues q system which would retain many OF
tbe features of the National banking system
while giving 10 the banks greater license as
to the character of securities t. lie dep Sited
for circulation.
The scheme j. curiou>lH called rcorgan-
ization OF National banks H. state banks. but
on inspection appears 10 involve change
of name without corresponding c4ange OF
nature The plan as reported by The sun
is that the National banks shall rcolGanizc
a. State institutions" but shall be permitted
10 issue mites based upon only such state
Municipal and other securities as the National
authorities may approve. shall remain subject
to National inspection and control and shall
continue to nave the benefit OF National re-
dempfiOn and guarantee OF Their notes. The
rfpaal of the tax on State bank issues. accord
ing 10 the report. is then t. appl, only Ia such
banks as may comply with the proposed re-
stric,ons. submit securities such a the Ma
tion,l auihoritie, accept open banks and bl>l-
ness to The inspect on of National officials. and
make provision For the redemption Of their
note, through the National Treasury.
At glance it will be seen that such banks
as are described would It'll be really National
banks eycep in name and'in subsection 10 such
additional restrictions "a the state govern
ments may see fit to impose. But it Is difficult
TO see how law can be drawn which Will give
State authorities any substantial powers over
the banking institutions. and will at the same
time secure valuable rights 20 them upon com
pance with the requirements OF National au-
thor.ty The attempt to create banks which
shall be both National and State in reality.
though called State banks. would have clos"
family resemblance b the attempt to frame a
tariff which would be both protective and free
trade in character. while called by either
ramc, according 70 individual preference.
craftsmanship of a certain kind. and great
deal Of it, would aSsuredly be required t, de
wise such a banking system thar w0uld work.
If Z" The sun" is correct. President Cleveland
favored this plan. submitted letters from most
of the bankers of this and other cities recon-
mendng it. and finally il was left 10 Sccre-
tary Carlisle 10 have bin drafted on the lines
proposed. lie would have a remarkably diff
cult task if he should undertake it. in which
he would need The assistance OF all the bankers
in the country lie at least is aware. beyond
doubt that the Democratic party has not de-
mandnd and does not want IA state bank ~ stem
which shall be controlled and supervised b,
The Natl nj Gov rameni at Washington.