The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1893-07-14
REPEAL OF THE TAX ON STATE
RANKS

A great deal of interest is now being
Clev Gland will incorporate into his
first and most important message to
the special session of Congress, which
has been called to convene on August
eth. That il will be an able document
is undoubted. His utterances i'm the
past have been in no uncertain tone
and his views ON the two absorbing
topics now before the people are well
known. Undoubtedly great stress
will be laid upon the repeal of the
Sherman silver law, which has be-
come SO obnoxious to the people at
large as to destroy in measure conf
dence in our currency. That bill to
repeal this law will be passed by the
House is generally conceded but is
not so certain. Even if majority
were in favor of repeating the law yet
a well organized minority could re-
tard and possibly defeat theswill of
the majority under the existing rules.
A compromise has been suggested
which should receive intelligent con-
sideration. The last Democratic
platform recommended the repeal of
the tax ON State bank notes.
1t is, of course, assumed by many
that the repeal of this law would at
once open the sluices and admit all
kinds of wildcat money, restoring the
old conditions when bank notes would
not circulate any distance from home
except at ruinous discount. A State
bank cannot make any money legal
tender and no one can be compelled to
accept it. The only way that it can
get people to accept its notes would
be to throw such safeguards around
its circulation as would make it as
good as the national currency. People
are doubtless unaware that there is in
circulation a species of State bank
notes. When a large amount of money
is being transferred it is frequently the
custom to get a bank draft or q certi
fed check, and these are used daily
as a medium of circulation. No one
hesitates to accept either and they
pass freely into circulation, yet this
is nothing more nor less than the
State bank note. Besides there is no
more risk in accepting such a note
than in depositing money in the bank
for safe keeping. Exactly the same
risk is run in either case.
Undoubtedly, as soon as the tax is
repealed the banks would at once be-
gin the issue of notes, but as hereto
fore stated it would be useless unless
the public were at first satisfied as to
their soundness, and this could be re-
gulated by appropriate State legisla-
ton such as requiring the deposit of
State bonds with proper officials, and
in this way really the credit of the
State would be pledged and it would
be equivalent to the circulation of
the State bonds themselves, just as
our national bank notes are now
equivalent to the United States bonds.
What President Cleveland's views
are on the subject is OF course only
speculative, but it has been stated
that he is inclined to favor it..
While the Democratic party is not
pledged to repeal this law, the plat
form simply recommending it, yet if
after intelligent consideration and
thought it can be shown that State
bank notes are less Objectionable than
the Sherman law there should be no
hesitation about substituting the one
for the other Besides, it is matter
of grave doubt whether the law is con-
stitutional which forbids State banks
to issue currency. State banks under
proper restrictions, with their circula-
ton secured by State or municipal
bonds, would be as safe and solvent
as National banks. There is no dan
ger that the people of any State
will ever go back to the wildcat cur
rency with which the country was
afflicted before the war