The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-16
In THE SENATE AND HOUSE.
Silver Discussions Supreme in Both
Chambers.


For Six Months-Savannah, He
Says, Never Had a Defaulting Bank.
Mr.. Voorhees, Introduces a Bill to
Increase the National Bank Cirou-
lation-The House Entertained By
Several Speeches For and Against
Free Coinage.
Washington, Aug. 15.-There was
marked falling of in the number of silver
petitions presented this morning, not
more than half a dozen being sent up for
reference to the finance committee.
A bill TO repeal so much of the act of
July II, 1890, as directs the purchase of
silver bullion was introduced by Mr.. Nc
Pherson, dem, N. j., and referred to the
finance committee.
SENATOR GoRDoN's ExPEDIENT.
Mr.. Gordon introduced a bill, and be-
fore its title was read he went on to ex-
plain and advocate it. 1t was not he
said, panacea for our ills, buthe believed
solemnly, that if it were enacted into law
it would end the panic in fifteen days.
That was a,statement to which the Senate
bill was. 1t was bill, not to re-
peal the ten per, cent. tax on state banks,
but to suspend its operation for six
months. The effect of 1t would be this:
The cotton crop was to be moved Only
yesterday telegram had been sent from
the cotton centers with request that
something be done in the treasury to have
bills of lading authenticated and
changeable for money or to have some
course provided to move the cotton.
CITING SAVANNAH AS HIS EXAMPLE.
The bill would enable the banks of Sa-
vannah, for instance, the central port for
cotton, to issue, for the time being, their
individual notes, The programme was
this: Bank A, with capital of Sl00, ,000
would issue notes to the amount of 20 per
cent of that capital. There were six such
banks in Savannah. All of them would
indorse the bills of each In addition to
that, collateral security would be put up
This would be true as to all the state
banks of Savannah, so that within ten
days, there would be at least $500, 900 ad-
diJional money in circulation in that city.
1t would not be, perhaps, money; would
be the notes of the individual banks, and
would be good for paying debts there and
elsewhere.
OF WIDESPREAD BENEFIT.
So it would be in all the other cities.
If objection were made that the repeal of
the tax on state bank circulation would
encourage the establishment of state
banks, the reply was hat no one would
think of taking dollar of stock IN a new
bank that would be wiped out of cxis-
tence by the expiration of the pro
visions of the act. Only last
night he had had conference with a
large number of as able bankers as there
werein the country and they were all of
the opinion that the circulation thus pro-
vided would relieve Georgia, Texas, Mis-
sissippi and the cotton states within a
few days after the removal of the en-
barge on the movement of the cotton
crop.
WHAT THE MEANS OF RELIEF MEANT.
those states. The banks were to-day alb
solutely not only without ability to pro-
vide the money for moving the cotton crop,
but they were without ability to com
mand their own money lying on depositin
the city of New York. The checks which
they drew on their own deposits
in the New York banks were paid in some
other way than in the circulating medium
The bill he introduced would supply
every dollar of Indebtedness in any state
that happened to possess it. There was
not a merchant in any townof that region
who would not recognize the fact that
the notes Of any bank to the amount of
20 per cent. of its capital would be good
in themselves.
COLLATERAL WOULD HAVE TO BE PUT UP.
In addition to that, each bank would
have to put up collateral and the other
banks would indOrse its notes. There
is no better money in this country than
these notes would be- They would be
equivalent to a ship load of gold, and
would at once move thelentire cotton crop,
and relieve the commercial stringency
He asked the serious attention of the
Senate to the bill While he knew that
his.remark, that it would relieve the
panic in fifteen days, was calculated to
provoke a smile, he still undertook to say
that it would relieve the panic in Georgia
in ten days after its passage.
NEVER s sAvANNAH DEFAULTING BANK
1t would do so in every other southern
state. They never had defaulting bank
in the city of Savannah, except when they
We're wiped out of existence during the
war. He asked the reference of the bill
to the finance committee, and he asked
that committee to report it back promptly
The bill was then read and referred to
the finance committee. 1t suspends for
six months the operation of section 3412
of the revised statuets, which imposes a
tax of 10 per cent. on the notes of state
banks.
INCREASING NATIONAL BANK CIRCULATION.
Voorhees,, chairman of finance commit
tee, reported back the bill introduced by
him yesterday to enable national banks
to issue circulation to the amount of the
par value Of the bonds deposited by them.
The bill, he said, had not only the indorse@.
ment of the committee on finance and of
the secretary of the treasury, but a SINH
lar measure had passed the Senate unani-
mously last session. He did not. by any
manner of means, proclaim the measure
as one of entire relief, but he looked upon
1t as measure Of relief. 1t would to
some extent help the people.
S19,00O,OOO MORE CURRENCY.
It would authorize an increase Of S19.-
100000 of circulation Of national banks on
the bonds already deposited There was
not doubt that it would result in an in
crease of currency that would be at this
time solace and comfort to the people in
every quarter of the United States.
An objection from Mr.. Cockrell sent the
bill over until tomorrow
WILL MOVE ITS PASSAGE TOMORROW.
Mr.. Voorhees, gave notice that he
would tomorrow move TO put it upon its
Dargaua al aalra1 oIs