The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-06
A STATE BANK CURRENCY.
CeOr6ia'S Lower House Passes a
Combination Bill.

of State, County, Municipal or
United States Bonds.
Atlanta, Ga, Dec. 5.-The bill provi-
ding for system Of state banks, the bin
made up by the House committee from the
Calvin and Veach bills, passed the House
to-day by vote of l9l to Is. 1t came up
as the special order of the day, and first
and last was the subject of good deal of
discussion. Following is n brief synopsis
of the bills provisions: The governor,
the treasurer and the controller general
shall constitute a commission, authorized
to have notes engraved in denominations
not greater than 81 900 aud not less than
81, all Of which are to be
countersigued by the controller general.
Then any bank desiring to issue these
notes must make written application,
giving the name of the bank, the place
where il is located the amount Of its
capital stock, u transcript of the records
showing the names and places of resi-
dence of the shareholders and the num-
Der Of shares held by each of them
actually paid in by each shareholder;
and when this has been done the commits
sion must inquire into the truth of tho
statement. The capital stock of such
banks must not be less than S25 600 paid
in gold or silver. or lawf74 currency of
the United States,an one half of it must
be set apart and kept on deposit for the
redemption of bills issued by the banks
The remaining half of the capital stock
paid in shall be invested in valid county,
municipal. state or United States bonds
The bill provides that these bonds shall
be deposited with the treasurer and when
the banks have complied with the pro
visions set forth the commissioners shall
issue three times the amount of
the notes as the amount of legal tender
coin or currency deposited by the
bank. These notes shall constitute a first
lien on all the assets of the bank, and
they shall be redeemed in United States
coin or currency upon demand. If the
bank fails to do so for thirty DAYS the
governor shall instruct the attorney gen
eral TO institute legal proceedings against
it. IF at any time bonds of the bank be-
come valueless the commissioners must
see that good bonds are put in their
places. In addition to this the bonds
shallnot be withdrawn until the bank shall
have redeemed all Of the circulating notes
and paid all its depositors The banks
issuing notes are required 10 make four
quarterly reports to the commissioners
the reports TO be published and in addi-
tiOn to this the commissioners can, at any
time, call for special report. The bank
inspector shall be required to visit these
banks as often as the commissioners NAV
deem necessary. 1t shall be unlawful for
any of these banks to loan in the aggre-
gate more than 25 per cent. of the amount
of its capital stock to their officers and
directors, or TO loan more than
10 per cent. to any one of
such officers or directors and il
shall be unlawful for these banks to loan
Of &c 70
dorsement of any of its officers or direc-
tors. Any officer or agent violating the
provisions of the act shall be guilty of a
felony, and the bank shall declare no divi-
dend until after the net earnings shall
reach an amount equal to per cent Of
the capital stock.
Mr. Calvin, of Richmond insisted upon
his bill being the one passed. lie offered
it as substitute, but it was lost. The
Calvin substitute differs from the Veach
bill principally in the amount of
circulating notes that can be issued on Sc
curity deposited. Bonds to the amount of
IS per cent. Of the capital of the bank NAV
bedcposited with the treasurer and bills to
the amount of 80 per cent. of the bonds so
deposited could be issued and circulated
by such bank.
substitute, but it was not considered by
the House.
THE AUTHOR OF THE BILL.
Mr. Veach, of Barlow, who is practi-
cally the author of the state bank bill
which passed the House, is a practical
business man. He has lived at Adairs-
vile for nearly fifty years and
is one of the most successful
BUSINESS men in Georgia. He
has made a fortune in the mill bust
ness. and has been a director IN the
H.. d. g
organization. He has never been in poll
tics until the present legislature, but is
an earnest student of current political
questions and is a life long democrat.
Mr.. Branch, of Columbia the third
party leader in the House made speech
this morning in the debate over the bank
bills. When Mr., Calvin had concluded
Mr.. Branch gained the at
Speaker" :" said he, before beginning INV
remarks l send to the desk
copy Of an Atlanta paper with a passage
marked in it. This passage is from the
Washington correspondent Of that paper.
and is headed Nothing From the South
and West" The clerk took the paper
sent TO the desk and read: THE demo
Gratis of the House and Senate. as a rule.
refused TO discuss the message"
At this point Mr.. Hodges. of Bibb, rose
to the point of order that If the passage
was being read for information il was not
german to the subject matter under con
sideration
The speaker ruled the point well taken.
Mr.. Branch then made an excited
speech, in which he declared it was use
less 10 pass bank bill, as President
Cleveland, the autOcrat Of the Democratic
party, was opposed to state banks, and
congress was going to do just as President
Cleveland said.
DEBATE OVER LIQUOR BILL.
There was a warm debate in the Senate
this morning over a bill introduced by
Senator Jenkins, which was finally
passed. The bill makes it unlawful to
sell or solicit the sale of sprituOus, malt
or intoxicating liquors in any county of
this state where the sale Of such
liquors is prohibited by law, high
license or otherwise, provided the
act shall not be construed as
preventing the furnishing OF such liquors
topersons in such prohibited counties upon
purchases made Of licensed dealers in
such liquors outside Of and not solicited or
contracted for in said prohibition couu-
ties
Senator Corputt opposed the bill, as he
thought it would give a foreign dealer in
liquors an advantage over Georgia deal
ers. Senator Jenkins, the author
Of the bill, explained his reason
for introducing the bill. stat
inc that DrOhi bit tiOn pol1n tics ,rpra ovarr,,,,