The times. [volume] (Richmond, Va.) 1890-1903, 1893-10-07
STATE BANKS OF ISSUE,
MIR. BUILFR'S IDVOC4CY or THE
REPEAL or THE TAX.
A Substitute for the Voorhees, Amendment
To Secure Free and Fair Elections.
House aud senate Proceedings.


the leading merchants Of Baltimore"
praying for speedy action on the silver
purchase repeal bill.
Mr.. Allen offered a resolution. which
went over until tomorrow, calling on
the Secretary Of the Treasury for infor-
nation as to the government borrowing
money since March, 1915.
The resolution offered on Wednesday. by
Mr.. PETER for the appointment Of a select
committee to inquire what legislation is
necessary to improve the banking system
of the country. was laid before the Senate
and Mr.. Stewart spoke upon it. His re-
marks, however. were entirely in the
direction OF a criticism Of the Treasury
Department for it's noncompliance with
the law requiring the monthly purchase
Of four and a half million ounces Of sill
yer. After remarks by Mr.. PETER a
motion was made by Mr.. Mcpherson to
refer the resolution TO the Finance Com
mittee. The motion was advocated by
Mr.. HILL and was agreed to-Yeas, 35;
nays, s.
The negative votes were given by
Messrs, Allen, Dubois, PETER, Perkins,
| Stewart, Teller. Vance and Wolcott.
The resolution offered on Wednesday by
| Mr.. Morgan, instructing the judiciary
Committee 10 inquire as 10 whether any
and what provisions of the law Of 1887
| Ghe free coinage law are stiH In force,
was laid before the Senate and agreed
| 10, without discussion and without di-
| vision.
The silver purchase repeal bill was
| then, at 12:40, taken up; and Mr.. Nc
! Pherson gave notice that he would on
| Monday next (health and voice permit
| ting address the Senate on one or two
points that had been presented In the
! discussion.
Mr.. Blackburn sent TO the clerks desk
and had read the amendment 20 the re-
peal bill which he had given notice
Of I'm his speech on Wednesday. 1t strikes
out the voorhees, amendment TO the
| House bill and substitutes for 1t six addi-
| tional sections II authorizes the free
| coinage Of silver from the United States
| mints. except as TO seigniorage; the rate
| Of which Is to be established by the Secre-
| tary Of the Treasury on the first Of each
| month. The seigniorage is 90 be the diff
! ference between the market price OF
the silver and its minted value after c1in-
age. The seigniorage IS not 20 be coined.
but IS 10 be sold for gold (elther az
home or abroad, and the gold received
for IT is 10 be held in the treasury and
used only for the purpose Of maintain
ing parity between the two metals.
MIR Call took the floor and contin-
ued the argument against the bill when
he begun on Wednesday When Mr..
Call took his seat, Mr.. Butler arose and
| addressed the chair. There were then
about half n dozen senators In fhe
| chamber. and that fact being called 10
the attention Of the presiding officer.
a call Of the Senate was ordered ana
! fortv-three senators responded
Mr. Butler apologized, humorouslY, TOT
the disturbance Of senator's and for re-
curing their attendance in the cham
| her hut he told them q at the call had
| not been made at his suggestion. lie had
been q little dazed. he confessed, AT the
! 'Tarpe enthusiastic and wild audience
| which he saw when he rose a moment
ago but he had made up his mind 10
Get along with it the best he could. Iha'
audience having subsided now ana nav
ing come down 20 he an orderly bonF
bo hoved he would be tolerated while
he continued his observations where ne
had loft of the other day. He had not
-, snoal,inr more than five minutes
however when he complained Of LOUD
| conversation I'm the chamber ana salu
tbot as between the loud conversation
| ~ eeratore and their absence from the
| chamber. he preferred their absence.
T4a sneciNed the senator from Alaoamf
| Prgb) as talking IN a louder Ton" 1hai
he CRutler) was. After he bad thus oD
tatned cuiet In the chamber, Mr' buue
'-a,t on with his speech, which was y
s,,r,ort of the amendments suggested By
| him repealing the ten per cent. TAX OF
he notes of the State banks. He ASSERTED
mar ne had 10 prejudice against M
natiooal banks, but he thought them
dangerous. a very dangerous, depository
Mr. Allen asked Mr.. Butler whether n
was willing tfat the repeal Of the ten pei
cent. tax should be conditional ana ina
n should be accompanied with provisions
lortroliing the volume Of currency TO b'
iesued by the State banks and Cirectin'
nroner safeguards for 81? What did h
thirk as TO the power Of the general gov
ernment by act Of Congress, TO Vitaliz
that issue and make it legal tender?
Mr.. Butler replied that he had not sivcl
consideration 10 that branch Of the SUB
iect. but in his view ne should prefer th
unconditional repeal OF the ten per cent
tax on state banks and leave TO the state
themselves the question Of what step
they would take TO secure the bill-nolde
and the depositor.
Mr.. Frye inquired whether Mr. Butler di'
not want TO have such currency q
would circulate all over the United state
without the necessity Of paying the eX
change which had TO be paid In the ol
days2
| Mr. Butler replied that that was, purel
and SIMPLY a matter OF opinion, but b
was not concerned about the uniformit
of the currency. The State Of Main
would throw safeguards around its Stat
banks, and the State Of South Car0iin
would do likewise
He went on TO argue that knowing IN
decision of the Supreme Court TO the con
trary) there was no constitutional pOwe
in Congress 10 impose a tax unless reve
nue. was the object. and there was not
dollar OF revenue collected from the Ia
on State banks
Mr.. Butler read from the Forum al
article explanatory OF Scotch banks, an
ne asked why there could not be such
system Of banks allowed in the Unite
States.
Mr.. Allison reminded him that ever
stOckholder in a Scotch bank was liabl
10 the full extent of his property 70
every obligation Of the bank. That wa
the gist Of the success of the Scotch bank
ing system
Mr.. Butler expressed his belief tina
the State OF Iowa and the State OF Sout
Carolina would require just as safe an
conservative a method OF banking. Why
he asked, could not the American peopl
initiate the Scotch in that respect? VIII
could not each locality be allowed I
have such banks? Why could not IN
q States. which had been intrusted wit
nower on so many other vital points, b