Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1893-09-05
TAx0N STATE BANKS.
Question With WhiChC0n.
gress Will WrestIe.
WILDCAT DAYS ARE OVER.
A Thorough Revision Of Our Financial
Legislation Not Unlikely.

wAsHINoroa. Sept. b.-Speeches for and
against repeal were made In the senate by
Messrs. Cullom and Coke Chairman
Voorhees, defeated an Attempt at delay.
but yielded to pressure from silver Demo
Gratis regarding the proposed change Of
hours of meeting.
The question Of repeating the tar on
state banks as called Tor In the Chicago
platform is already before tbe senate In
the shape of a bill introduced some days
ago. Also In the Burler ssnapdmeut to
the voorhees, bill offered yesterday and In
the shape OF another amendment to Mr.
Voorhees, bill providing for the extension
Of the circulation Of national baaka The
latter bill has been effeotuslly side track I'd
and there appears 20 he little hope of
ressurrecting IL.
It IL predict ID, however, that rs soon as
the repeal of tie Sherrlaa bill has been
effected the proposition (should that ever
be) to repeal the tax on state banks will
come to the front at once, aud when II
does IL Is probable discussion will be be-
gun looking to a thorough revision Of the
financial legislation OF the country. The
idea of oasing the circulating notes OF state
banks upon state or municipal bonds does
not find favor in the senate for the reason
that such security is not looked upon as
substant tial enough TO withstand the as-
saults Of the stock markets and does not
obtain that high place In the confidence Of
the people which bonds and evidences Of
the Indebtedness Of the federal government
hold.
Congress Must Act
Senator Gray. speaking of this matter
thought the day was not Tar distant when
this whole subject would have to be con-
sideied and acted upon by the congress of
the United States. He said that the con-
dtions today and those before the war
when the state banks were In vogue were
an widely different ~ possible There was
no more danger now Of wildcat banking
than there would be Of attempting to en-
force the fugitive slave law.
Others think the idea OF issuing more
bonds finds favor. while In these Of others
IL is nightmare that causes unrest and
uneasiness. Senator Voorhees, is perhaps,
the most outspokeh champion Of state
banks on the foor Of she senate What he
means by a state bank is not as commonly
remembered. but the chartered state banks
which have a circulation based upon
specie itself--goid and silver,
He Is not one Of thgse who believes the
security of the notes should be found In
state or municipal bonds. but ne holds
that It should be based upon the precious
metals themselves. rhis means that
there should be at all times 10 the vaults
OF the banks one-third the amount Of It's
notes In gold aud silver, en- amount amply
sufficient. from this point Of view, to re-
deem any OF the notes of the bank thss
might At any time be offered for redomp-
tiop and upon which TO transact the busi-
ness u the community In which the bank
II located.
His plan also contemplates govern
mental supervision aud inspection, CON-
bnation which will, he believes, offer
solution to the problems now before the
house and give them q system Of banks as
6rm and reliable as any ever devised In
the world
There is no gainsaying the fact that a
bill With this end in view will be one Of
the first to be introduced when the house
has adopted its rules, and the Democrats
In the senate are thus early discu ssing the
probability of It's passage.