Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-08-16
SENATE AND HOUSE.
Gordon for Suspension Of the State
Bank Circulation Tax.
CROSVENOR AGAINST FREE COINAGE.
The Mntter of Presidential Appointments
in virginia and North Carolina
. Washington Notes of Interest
rBr telegraph to the Dispatch.l

was a marked falling off IN the number or
silver petitions presented this morning.
not more than half a dozen being sent up
for reference TO the Finance Committee.
A bill to repeal 50 much of the act OF
July IA. 1890, as directs the purchase OF
SILVER bullion was introduced by MIR. Nc
Pherson Democrat, of New Jersey, and
referred to the Finance Committee.
SUSPENSION OF sTArE-BASK TAX.
Mr.. Gordon introduced O bill. and be-
fore its title was read went on to explain
and advocate It, IL was not, he said,
panacea tor all our ills. but he believed
solennlg that if il were enacted into law
1t would end the panic in fifteen days.
That was statement to which the Senate
would agree when it knew what the bill
was. 1t was a bill not to repeal the 10 per
cent. tax on State banks. but to suspend
its operation for SIX months. Inc erect Oh
1t would be this:
The cotton crop was 10 be moved. Only
Yesterday a telegram had been sent from
the cotton centres with @ request that
something be done IN the treasury 10 nave
bills Of lading authenticated changeaole
for money, or TO have some course pro,
vided to move the cotton. The bill would
enable the banks of Savannah, Tor IN
stance. the central port for cotton, TO issue
THE PLAN.
The programme was this;
Bank A. with q capital of S100. 900, would
issue notes to the amount of 20 per cent.
of that capital. There were six such
bonks in Savannah. All OF them would
endorse the bills Of each. In addition 10
that collateral security would be put up.
This would be true as TO all the State
banks OF Savannah, so that within ten
days there would be at least SG00,0OO addi-
tiOnal money IN circulation IN that city.
1t would not perhaps, be money. but II
you'd be the notes of the individual
banks. and would be good for paving
debts there and elsewhere. SO 1t would
be in all the other cities. III objection
were made that the repeal OF the tax on
State bank circulation would encourage
the establishment of State banks, the reply
was that no one would think of taking q
dollar of stock in new bank that would
be wiped oIt of existence by the expira-
tion of the provisions OF the act. Only
last night he had had conference with
large number of as able bankers a. there
were III the country, and they oil were OF
the opinion that the circulation thus pro-
vided would relieve Georgia. Texas, Mis-
sissIppi ana all the cotton States within
few days after the removal of the embargo
ON the movement of the cotton crop.
AMATTER or MOMENT.
II WAS a matter of gigantic moment to
those States The banks were to-day alb
solutely not only without ability to pro-
vide the money for moving tho cotton
crop, but without ability to command
their own money lying on deposit in the
city OF New York, The checks which they
drew on their own deposits IN the New
York banks were paid III some other way
than in the circulating medium. The bill
uyht hn UnnI1
porary currency. which would paw every
dollar of Indebtedness in any State that
happened TO possess II. II ere was not
merchant IN anv Of the towns OF that re-
gion who would not recognize the fact
that the notes Of any bank to the amount
of 20 per cent. of its capital would be good
in themselves. But. IN addition to that,
the banks would have to put up collateral
and the other banks would endorse its
notes.
NO BITTER MONEY.
There was no better money in the coun-
try than these notes would be. They
would be equivalent 10 a shlp-loa OF gold,
and would at once move the entire cotton
crop and relieve the commercial stringen-
cy. He asked the serious attention OF the
Senate to the bill. While he knew that
his remark that It would relieve the panic
in fifteen DAYS was calculated to provoke
q smile, he still undertook TO say IL would
relieve the panic IN Georgia IN ten days
after its passage. 1t would do so IN
every other southern State. They had
never had q defaulting bank IN the city OF
Savannah. except when thoy were wiped
out of existence during the war. lie asked
reference Of the bill to the Finance Com
mittee. and he asked that committee to
report II back promptly.
The bill was then read aud referred TO
the Finance COMMITTEE. 1t suspends for
SIX months the operation OF section 3il2 OF
the Revised Statutes. which imposes a tax
of 10 per cent. on the notes OF State
banks.
MI. VOORHEES, BILL.
Mr.. Voorhees,. chairman Of the Finance
Committee, reported back the bill intro
duced by him yesterday To enable national
banks to issue circulation to the amount
of the par value OF the bonds deposited by
them. The bill, he said, had not only the
endorsement OF the Committee on Finance
and of the Secretary of the Treasury. but
q similar measure had passed the Senate
unanimously last session. He did not by
any manner of means proclaim the mea-
sure as one CT entire relief. but he looked
upon 1t as a measure of relief. 1t would. TO
some extent, help the people. 1t would
authorize an increase of cl9, 900 in the
circulation of national banks on the bonds
already deposited. There was not doubt
that il would result in an increase of from
$40, 900 900 10 $4,000 0O0-an increase OF
currency that would be at this time
solace and q comfort to the people III
every quarter OF the United States.
An objection from Mr.. Cockrell sent the
bill over until tomorrow,
Mr.. Voorhees, gave notice that he would
tomorrow move 10 put II upon ats pas
sage. He also asked and obtained leave
for the Committee on Finance TO SIT
l.. Of N
gave notice OF meeting OF that commit
tee for Thursday next
THE MONTANA sESAToRsHIP.
The Senate then took up the question of
the Montana senatOrship, and Mr. Hun
ton made q speech IN support OF MIR. Man
ties right TO the seat.
THE LODGE RESOLUTION.
At the close of Mr.. Hunton's speech the
resolution offered last tuesday by Mr..
Lodge (Republican), of Massachusetts,.
directing the Committee on Finance TO
report at once a bill TO repeal the pur-
chasing clause of the Sherman act was
called up, and AIr. Lodge said that the
first step IN restoring confidence was TO
lower the present excessive rates OF lnte-
rest. English money did not come here
because Eugishmen had belief that
the United States might at any time 20
on the single silver standard. Mr.. Lodge
did not forget, however, that affirma-
tive and positive legislation IN
reference TO tie currency would have TO
be enacted. but that legislation would take
time. thorough consideration, and ample
discussion. lie believed that now more
important than any financial or economi-
cal discussion was prompt action. What
the people wanted above everything was
to see action-some sort of action III Con-
gress. IL the country was to have free
coinage. let the country know it If it
was TO have limited coinage. let the
country know it. and if there was to be a
repeal of the silver act, let the country
know IL.
MB. woLcorT's VIEWS.
Mr. Wolcott agreed with Mr.. Lodge that
this was not party question. de did not
agree with HIM that the present distui bed
state OF the finances of the country were in
any way attributable to the Sherman law.
1t had come partly because of European
losses in South America and Australia,
partly because Russia ana Australia were
buying gold, aud partly because the
United States had purchased more goods
abroad than It had sold abroad. The
causes were utterly irrespective OF silver