Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-09-07
QUESTION OF STATE BANKS.
Senator Gray's Views Upon
Leading Financial Subject.


1t Will Soon Have to he Considered and
Acted Upon--No Desire to Return To
the Days of "wild Cat" Banking. l
WAsHINGToN, Sept. 4.-The question Of
repeating the tax on State banks, as called
for in the Chicago platform, is already be-
fore the Senate in the shape of bill in
troduced some days ago, also in the Butler-
amendment to the voorhees, bill, offered
to-day, and in the shape of another amend
ment to Mr.. Voorhees, bill providing for
the extension of tho circulation of
national banks, The latter bill has been
effectnaily side-tracked and there appears
to be little hope of resnrrecting il, so that
the last.named amendment will othe way
of all amendments to bills that have been
killed by the process OF slow strangulation.
II is predicted, however, that, as soon as 3.
the repeal of the Sherman bill has been
effected, the proposition should that ever
bel to repeal the tax on State banks VIII
come to the front at once, and when IL.
does it is probable a discussion will be
begun looking to thorough revision or
the financial legislation OF the country.
The idea of hasing 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 substantial enough to withstand
the assaults of the stock markets. and does
not obtain that high place in the conf
dence of the people which bonds and evi,
dences OF the Indebtedness OF the Federal
government hold.
Senator Gray, speaking of this matter,
thought that the day was not far distant
when this whole subject would have TO be
considered and acted upon by the Congress
of the United States. He said the condi-
tions to-day and those before the war,
when the State banks were in vogue. were
al a M
There was no more danger now of Wild
cat banking than there would be OF at
| tempting to enforce the fugitive slave law.
| He believed that the wisdom of Congress
4 would evolve some plan upon which the
currency of the people could be based and
| given stability that could never be ques-
| toned Government bonds would soon
cease to exist, and when that time came
the security that now preserves the notes
! of national banks and makes them as
good as the governments obligation would
pass away, and by the mere force of cir
cumstances something would have to take
their place. What that substitute should
be was for Congress TO say. Whatever y
| was, he believed it would be as firm and
substantial as the system now in use. The
substitution of the State banks would add
to the currency OF the people and increase
the circulation in small communities,
where it was SO often needed.
In the minds OF other Senators the idea
OF issuing more bonds finds favor, while in
those of others it is nightmare that
causes unrest and uneasiness. Whether
such proposition could carry is q mooted
question. Some of the strong men OF the
Senate are on either side.
Senator Voorhees, is, perhaps, the most
oatspoken champion of State banks on the
floor of the Senate. What he means BY q
State bank is not the bank SO commonly
| han md ad wi a
pugnant TO good banking principles, but
the chartered State banks which have cir.
culation based upon specie itseif-gold and
silver Senator Voorhees, said to-day that,
when he made the statement in his speech
few days ago that no man had ever
lost dollar through chartered State
bank, he uttered truth that had not TO
this day been denied aud could never
be. That is the sort of bank he contends
for. He is not one of those who believe
the security of the notes should be found
in state or municipal bonds, but he holds
that it should be based upon the precious
metals themselves. This means that there
. should be at all times in the vaults OF the
! banks one-third the amount OF its notes IN
gold and silver an amount amply suth-
Gent, from his point OF view, 70 redeem
any Of the notes of the bank that nigh
at any time be offered for redemption, anc
upon which to transact the BUSINESS o
the community in winch tne pank
v located. His plan also contemplate
>, a combination which will, he believes
offer a solution to the problems now be
d fore the people. and give them a system
!, of banking as firm and reliable as an
S ever devised by man.
There is no gainsaying the fact that
a bill with this end in view will, be one Q
4 the four to be introduced when the Hous
a has adopted its rules, and Democrats !
= the Senate are thus early discussing tn
probability of its passage In the Senate
Is unlikely that the Democrats will hav
y the assistance of the Eastern Republican
!, as they now have in the attempt to repes
u the Sherman act. Whatever may be th
: bill introduced, according to Mr.. Voorhee
it will be carefully ammended and guarde
Id so that in no sense can it be charged again
n the Democratic party that it is seeking
N return to the days of socalled wild c.
g banking.