Omaha daily bee., 1893-09-06
Patching UP 4 COMPROMISES.
President Cleveland Confers with Congress
man Oates Over a Measure.

| PRESIDENT Cleveland Confers with Congress
man Oates over u Measure.
| WASHINGTON, Sept. 5.-"You can
say, said Congressman Oates of Ala
bama as he left the white house after an
interview with the president on the
subject OF the proposed repeal of the
state bank tax, that while am not at
liberty TO relate my conversation with
Mr.. Cleveland, | can say he is not OPP
posed 10 the repeal of the prohibitive
| tax"
This interview was considered OF such
Importance that the president declined
TO receive Mr.. Blouut and several
foreign ministers who called at the
Jlme the Interview was progressing
IL is true that the administration
Is endeavoring to devise some plan
by which the demands of the southern
and western democracy for more
currency can be satisfied, effect be given
10 the state bank plank of the demo-
cratic platform, and the schism which
exists in the democratic party because
OF the advocacy of gold monomctallism
by the president be healed. But it is
also true that the project has not passed
beyond the stage OF suggestion and that
even IN the preliminary consideration
obstacles have been suggested which it
seems difficult, ifnot impossible, to over
come.
1t is difficult to see how law is to be
framed which will save the benefits of
the existing national banking act, cure
some OF its defects, maintain national
supervision and safeguards, and yet re-
move the barriers which now prevent
free and unlimited state banking.
The most intelligent statement of the
plan said to be under consideration is
the tollowing: A reorganization of the
national banking system under which
national banks may be organized with n
minimum capital of $3.50. 900, and with
the privilege of issuing circulating notes
10 Z per cent of their assets, but not to
exceed the amount of their capital.
Ihe purpose of fixing the minimum cap
ltal at S250,0O0 for national banks is TO
contine the large banks to commercial
centers, thus encouraging the establish
ment of state banks in the less, populous
sections of the country. The security
ior the circulating notes is to consist of
~ per cent OF government bonds, 40 per
cent OF commercial paper and 20 per
cent OF coin. Instead of the existing tax
OF l per cent on circulation, it is pro-
posed that one-half of l per cent shall
De imposed on so much of the circula-
1ion US Is secured ty government bonds
and per cent on the remainder.
-.
posed that the law shall provide that in
states which enact laws in harmony with
the federal law state banks may obtain
circulation notes upon the same terms as
national banks. The states must re-
qulre that banks deposit with the proper
state ofhcer the same amount of state or
municipal securities as is required for
national banks, and that the cash and
commercial paper shall be set apart in
the same proportion as additional secur-
lty. In addition to these collaterals, the
entire assets of banks, both national and
state, are to be held to secure circulat-
ing notes.
State banks organized in the manner
described are to be exempt from the pay
ment OF the 10 per cent tax now imposed
on circulating notes of such banks but
they will be required to pay the same
tax imposed upon the circulation of ma
tional banks, which is, too, held for re-
demption of the notes of failed and
liquidating banks. The notes of issue
TO state banks will be series distinct
from those issued to national banks.
Both issues will be accepted by the gov
ernment in payment of all public dues,
but will not have the full legal tender
quality.
Mr.. Carlisle has for some time been
thinking over the question of the coin
age of the silver bullion now in the
treasury and is anxious that an author
ization for this coinage should be given
by congress. The two propositions will |
probably be combined and recommended |
to congress for action or, atall events.
the leaders in congress will be given to |
understand that the administration will |
approve OF measure repeating the tax |
on state banks and providing for the |
coinage of bullion.
1t is believed that this proposition.
which is in the nature of an accommoda-
tion from the administration to those
who are anxious for an increase in the
volume of money, is expected greatly to
ease up the opposition to the repeal of
the sherman law, and it is believed that
1t will hasten action by the senate on the
Voorhees, bill. The senators from the
silver states may not be affected much
by it, but nearly all of the other silver
men will probably be satisfied with it,