Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1893-10-07
THE STATE BANK QUESTION.
Representative Oates Plan for Thar Re-
Establishment.

WASHINGTON. Sept. ea.-In view Of
the strong sentiment which exists in
congress. especially among southern
members, in favor of the re-establish.
ment of state banks, the novel PROPOSE
ton which the house committee on
banking and currency will begin to
consider soon is of great interest.
Representative Oates Of Alabama has
been notified to appear before the COM
mittee today In support of his
bill repeating the 10 per cent a on
state banks. Mr.. Oates bill differs
from all the others which have been
introduced to effect this end in hat it
propose to leave the reconstructed
state banks under federal supervision.
In conversation today Representative
Oates said:
IL am in favor of unconditional re-
peal of the state bank AK. But as a
great deal of opposition has been mani
tested toward this proposition, and as
all good legislation is the result Of a
compromise, | introduced the bill which
the banking and currency committee
has decided to take up.
I'm the first place, ] provide for the
suspension of the tax, but only toward
such banding institutions as subscribe
to certain conditions. Those conditions
are. first, that before a state bank shall
be permitted TO issue circulation, free
of tax, ii shall deposit with the state
treasurer or some other safe depository
an amount in state, county or municipal
bonds of a solvent character or of gov
eminent bonds or Of lawful money,
equal 10 the amount of its circulation.
THE second is hat in no single
state shall the total amount of this
kind of circulation aggregate more
than So per capita of the population OF
that state. | don't care SO much about
the second proposition, although you
will see that II each state awaited itself
of the full mount it would mean an
increased circulation of about $780,
900, 900 for the entire year
THE first proposition would keep
the state banks as much under federal
supervision as the national banks now
are. The tax on their circulation be-
ing suspended only under conditions,
the special agents of the treasury
would be entitled to examine the ac-
counts of the banks with the state
treasurers not only to see hat the
proper deposit had been made, but
also to see that il was retained at the
proper figure.
1.-THE solvency or worth of the bonds
go deposited would also become a mat
ter for the approval of the treasury
officials, and il not satisfactory, and IL
the required deposit was not up to h
limit required by the law. the tax could
be imposed again until all the require
ments had been complied with.
This plan appears TO me TO afford
the best guarantee of the safety of the
proposed state banks and would dis
pose Of the plea that another era of
wildcat banks was to be inaugurated.
Under this system notes Of any state
bank would be accepted without ques-
ton anywhere in the country, and they
would form part of u harmonious
whole. believe my bill will meet all
the objections raised against the reha-
bilitation Of state banks"
'And how does it meet the views Of
those who want state banks?'
"Well, I'll tell you the views of one
man. | asked Representative Bailey,
of Texas. what he thought Of it and he
said that he was not in favor of any
banks, and. therefore, he would be op-
posed to it,"
Before taking any steps in the mat
ter the banking and currency commit
tee proposes to enter into an exhaustive
examination of the whole subject. To-
day it will commence holding daily
hearings, on the matter, and at the
same time IL proposes 10 go into the
history Of state banks before the period
of the war ana subsequently,. To this
end the committee will call upon the
proper authorities in each state to fur
nish il with such information, histori-
cal or otherwise, which they may have
hearing npon ah~.@~Ates in hand. -