Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-02-21
STATE BANKS.
To BE or Not to Be, the
Question
WHICH AGlTATES THE SOLONS.
The Senate and House at Austin at Variance
on The Subject
One Fayors Banks Merely for Discount and
Deposit, ihe 0lher Banks Of lssue-Ths
Author Of The House Amendment
Sialos the Arguments for IL

W Aiit HlNlt DunhHs
The Gazette has already given the l
iull text Of the measure introduced In
both the senate and house. the former
proposing to make the banks banks ~
deposit aud exchange only. while the
latter would make them also banks Of
issue
In the senate. the state bank rcsou-
ton was introduced by Senator lcstes.
while Representative Moore introduced
the one In the house.
Meeting Mr. Moore in the hall today
the Gazette correspondent remarked that
discussion on the state bank seemed TO
be settling more and more on the Ques-
ton OF whether or not they should be
authorized TO issue bank notes
Yes replied MIR Moore Tho
question Of whether we snail have state
banks Of issue is bound TO become ono
OF the leading political issues In Texas.
The proposition contains, perhaps n
great deal more OF value 60 the people
than any other proposition with which
they Will have to deal Our people are
now struggling to carry ON the business
of the state aud develop the wonderful
resources which the God of nature hns
lavished with partial hand on Texas.
with q circulating medium entirely in
adequate. State banks of issue will more
than double our circulating medium.
Indeed, full supply Of the demand
the quantity of issue
This put the writer to thinking, and
after n moment, he asked. Would not
this elastic authority ~ to the extent of
issue affect the value of the notes in out
side markctsT
Mr.. Moore quickly responded:
"Of course state banks of issue would
be very disastrous 10 Texas If their issue
notes were not good IN the markets i'm
any Of the states for their face call
In the lawful money of the United States
The issue must bc us good as the money
of the United States government for
commercial transactions. II the amend
ment ! propose tO the constitution Is
voted by the people the bank-note issue
under it will at all times be as good as
the money Of tlie general government.
because II Will, in fact be- based upon
the money Of the United States A cor
pOratiOu seeking t0 issue bank notes for
circulation viii have TO deposit with the
state treusprer bonds of Incorporated
towns or cities or counties Of the state
OF TeMis, or bonds Of Texas, or bonds of
the United States. and only 30 per cent
of their value shall then be issued In
bank notes. These bonds, If course are
all payable in the lawful money of the
United States, hence banl-notcs based
on them are. I'm reality, based ON the
money Of the United States The lepis.
laturc enacting a law IN compliance with
my proposed amendment would vest
authority IN some officer of the state 10
see that the collateral of such banks
| ia case OF shrinkage IN value shall be
replcnished and at all times kept nj
| point where the issue of bunk-notes shall
not exceed 30 per cent Of this value of
such collateral In addition 10 the bond
| security, the stockholders are made liable
| for an amount equal 90 the value Of
their stock With all of this behind the
! PROPOSED bank-uOtps there can be no
! question of their value
What is your idea was the next
| question, "us to the Democracy of a
| move such as you propose National
| banks you know don't exactly meet the
requirements of Democratic tests and
these banks would be more akin to
national banks.
ut Is true, was the reply, "thnt the
| Democratic party has contended that
the national bank law Is unconstitu-
tional and undemocratic, The party may
be. and | think, is correct on both propO-
sitions. Congress has only the power Ia
| do what the constitution Of the United
States specifically authorizes 1t TO do.
aud the constitution being silent on the
| subject, / think congress OvCrstepped
its authority IN legislnting ON the mat
ter. Congress In reality, in my jndg-
ment, usurped the authority belonging
10 the stntes-whiCh they have never
parted with but still retain when II en-
acted the national bank law The ma
tional bank law is undemOcrauc because
the general government having the pow
er TO create money, sought 70 control IL
after the creation, instead Of turning IL
loose among the people. Again, Il is UNI
democratic because tlle government
turned over 10 Il the power TO create
money. as the national bank notes are
legal tender and good for debts both
prbnc and private. Our state bank notes
could not be made legal tenders aud
good for public and private debts. They
would be medium OF exchange 10 nusl,
ness affairs M all times, of the value OF
and convertible into the lawful mou'
CIV of the United StOtes,and would there
in differ from the national bank notes
IL will be the very essence of Democracy
for the states 10 provide for medium
of exchange adequate 10 carry on th'
business affairs of It's citizens' me ma
tonal government ought 10 give us I
money basis broad enough 20 supply th'
demand for business of government
nature of business of Interstate nnu
international nature, and upon such me 4
sure of values the states ought 10 pro
vide for n medium Of exchange domes
tic money necessary for the business
affairs Of It's citizens. Each slate can bes
iudge of It's own necessities As ~ u
nn,v Texns depends entirely on the lmt
ed states government for her monel
snpny. ma as q consequence, Texas ha'
perhaps $40 or ST. per capita n circnnlaa
ton willie Connecticut has ~ the nelgn
borhood of 5000 per capita aud Connect
cut Is "A finished shate and. Texas ~
state with vast resources absolutely un
touched. and really needs more moN,.
I,sn nor finished sister. II is onll
through the state banks Of issue system
that this evil IN our financial condition
can be rcmedied.
"What Is ycur opinion Of the senate
,,aos,,r. relative 10 state banksE wa
next asked ne fitting finale for mos
/ interesting interview,
Tie answer was prompt anu en'phnuo
o1be proposed Jester amendment
The constitution Is worse than no amend
ment al all II only provides i9r h9nk
az discount and exchange. Under y
thousand banks would not add q d9iia
~ tbe circulating medium OF Texas.
|