The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-20

It is question whether the President
will recommend the repeal Of the 10 per
cent tax on state bank notes, but even if
he does make such a recommendation IL
is not going to be an easy matter to get
bill repeating that tax through congress.
Mr. Springer. the chairman of the com
mittee on banking and currency, Is against
the repeal of it, and it is pretty safe to as
sumo that he voices the sentiments Of
majority Of the committee.
He says he has been giving a good
deal Of attention to the question Of pro
viding a greater volume Of currency, and
that his committee is now preparing a
bill to accomplish that object. The bill
viii be introduced into the House soon
after congress assemblies. 1t will provide
for a national banking system that viii
permit the use of state, county and muni-
cipal bonds as a basis for circulation.
The new system, however, will be wholly
under the control of the national govern
ment, just as the present national banking
system is. The national government will
be responsible for the redemption Of the
notes, will provide the bank examiners
and Will guard against counterfeiting.
The notes will be national in their char
acter and will be everywhere interchange
able with coin
Mr. Springer points out that one Of the
strongest reasons why the 10 per cent.
tax on state bank issues will not be
repealed is that number Of states have
provisions in their constitutions which
prohibit the granting of charters to banks
of issue. The representatives from all
such states would vote against the repeal
of the 10 per cent. tax, and in favor Of
banking system that would be national in
its character, and which would have all
the safeguards that are now thrown
around the national banking system.
1t is undoubtedly true that the people
have a high appreciation of national
bank currency. Those who remember the
paper currency under the state bank sys-
TEN have very little inclination to 90 back
to currency of that kind. There was
not great deal of trouble with it in the
south, because the south, in the times of
state banks, was extremely conservative
in her banking methods and prided her
self upon the soundness of her banking
institutions. In the west, however, there
were any number Of wildcat institutions
which flooded the country with irredeem-
able paper If the country should return
to the state banking system the evils of
that system would crop out again, how
ever great the efforts to remedy them
might be.
What the people object to in the ma
tional banks is their illiberality to GER
tain classes of borrowers and the power
they place in the hands of few people
If national banking system can be de-
vised that will be free from these evils it
is likely to be more acceptable to the peo-
pie than state banks.
The banking and currency question is
going to be an important one in this con
gress. 1t will command almost as much
attention as the tariff. From present in
dications the way for the establishing of
state banks Of issue will not be opened,
but there will be legislation that will af-
ford the opportunity for such an increase
IN the volume of the currency as will give
general satisfaction.