The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-09-05
TAX ON STATE BANKS.
Discussion on the Subject May be
Next in Order.
A THOROUGH REVISION PROBABLE

Bill with This End I'm View VIII be
one Of the Four to be introduced when
the House Finally Adopts It's Rules
Senator oray's Views.
WASHINGTON, Sept 5.--The question Of
repeating the tax on state banks, as called
for in the Chicago platform is already be-
fore the senate in the shape of bill intro
duced some days ago. Also in the Butler
amendment to the Voorhees, bill, and in
the shape OF another amendment to Mr.
Voorhees, bill, providing for the extension
Of the circulation Of national banks The
latter bill has been effectually sidetracked,
and there appears to be little hope OF res
urrectinQ it, so that the last named
amendment win go the way of all amend
ments to bills that have been killed by the
process of slow strangulation.
IL * predicted, however, that as soon as
the repeal of the Sherman bill has been
effected the proposition Should that ever
be) to repeal the tax on state banks will
come TO the front at once, and when it
does it is probable a discussion will be be-
gun looking to a thorough revision Of the
financial legislation Of the country. The
idea of basing the circulating notes of
state banks upon stnte or municipal bonds
does not find favor in the senate for the
reason that such security is not looked on
as substantial enough to Withstand the
assaults Of the stock markets.
Senator Gray, speaking Of this matter
thought the day was not far distant when
this whole subject would have to be con
sdered, and acted upon by the congress
Of the United States He said the condi-
tions today and those before the war when
the state banks were in vogue, was as
widely different as possible. There was no
more danger now of wild cat banking
than there would be Of attempting to en-
force the fugitive slave law.
He beli,v d that the wisdom Of congress
would evolve some plan upon which the
currency of the people could be based and
given a stability that could never be ques-
toned. Government bonds would soon
cease to exist and when that time came
the security that now preserves the notes
of national banks and makes them as good
as the governments obligation would pass
away, and by the mere force of circum.
stances something would have to take
their place What that substitute should
be was for congress to say. Whatever il
was, he believed it would be as firm and
substantial as the system now in use The
substitution of state banks would add to
the currency of the people and increase
the circulation in small communities
| where it was so often needed,
in the minds of other senators the ide'
| Of issuing more bonds finds favor, while il
those of others it is nightmare that
causes unrest and uneasiness. Whether
such proposition could carry is mootet
question. Some of the strong men of thu
senate are on either side.
Senator Voorhees, is perhaps the mos
outspoken champion Of state banks on tn
floor of the senate. What he means by 6
state bank is not the bank so commonl
, remembered and associated with ideas re
pugnant to good banking principles, bu
the chartered state banks, which have oil
culation based upon specie itself-gol
and silver. Senator Voorhees, said yestel
day that when he made the statement
, his speech few days ago that no ma
had ever lost dollar through a chartere
state bank he uttered q truth that to tn
3 day had not been denied, and could neve
be- This is the sort of bank he contend
for.
His plan also contemplates govern
mental supervision and inspection, aeon
biuation which will, he believes, offer
r solution to the problems now before I'll
people and give them a system of hankir
i as firm and reliable as any ever devised b
e man.
There is no gainsaying the fact that
q bill with this end in view will be one
r the four to be introduced when the hou
| has adopted its rules, and Democrats
the senate are thus early discussing &
| probability of its passage. In the sena
it is unlikely that the Democrats "
have the assistance of the eastern Repu
e licans, as they now have in the attempt
, repeal the Sherman act