The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-16
AS GEN. GORDON SEES 1T.
Il BILL THAT HE CLAIMS WILL END
THE PAyIC IN FIFTEEN DAYS.
He Introduces q Measure to Suspend for
Six Months Operation Of the 10 Per
Cent. Tax state Banks.

marked falling or In the num Der of
silver petitions presented in the Senate
this morning, not more than half a
dozen being sent up for reference to
the Finance Committee.
bill to repeal so much Of the act Of
July Il, 1890, as directs she purchase of
silver bullion was introduced by Mr..
Mcpherson Dem.. y. J.), and referred
to the Finance Committee.
Mr.. Gordon introduced a bill. and be-
fore its title was read went on TO ex-
plain and advocate IL. 1t was no,. he
said, a panacea for All other ills; but he
believed solemniy that il IL were on
acted Into law IL would end the manic
IN hfteen days. That was a statement
TO which the Senate would agree when IL
knew what the bill was. IL was n bilI
not 10 repeal the ten per cent. tax ON
State banks, but 10 suspend its opera-
tion for six months The effect OF IL
would be this: The cotton crop was TO
be moved. Only Yesterday a telegram
had been sent from the cotton centres
with a request that something be done
In the Treasury To have bills OF lading
authenticated change BILE for money. or
the cotton. The bill would enable the
banks Of Savannah, for instance (the CEN
tral port for cotton). 70 issue for the time
being their individual notes. The pro-
gramme was this: Bank 4, with a capi-
tai Of 500. 600. would issue notes to the
amount Of twenty per cent. Of that
capital. There were six such banks In
Savannah. All Of them would indorse
the bills Of each. In addition 10 that, col
lateral security would be put up. This
would be true as 10 all State banks Of
Savannah; so that, within ten days. there
would be at least 100000 additional
money in circulation IN that city. 1t
would not be, perhaps, money: but would
be the notes of individual banks, and
would be good for paying debts there
and elsewhere. SO II would be in all
the other cities. II objection were made
that the repeal OF the tax on State bank
circulation would encourage the estab-
lishment OF State banks. the reply was
that no one would think Of taking a
dollar OF stock In a new bank that would
be wiped out OF existence by the ex
piration OF the provisions Of the act.
Only last night he had had a confer
ence with n large number OF as able
bankers as there were IN the country,
and they were ali of the opinion that the
circulation thus provided would relieve
Georgia, Texas. Mississippi and all the
cotton States within few days after
the removal OF the embargo on the move
ment of the cotton crop. II was a mat
ter OF gigantic moment TO those States.
The banks were to-day absolutely not
only without ability to provide the money
for moving the cotton crop. but they
were 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 Ia some other way
than I'm the circulating medium. The Dill
which he introduced would supply tenn
porary currency which would pay every
dollar Of Indebtedness In any State thae
happened to possess It, There was not
a merchant I'm any OF the towns or that
region who would not recognize the tact
that the notes Of any bank 10 the amount
OF twenty per cent. Of It's capital wouid
be good in themselves. But, IN addiuoh
10 that the banks would have TO put up
collateral and the other banks would In
dorse its notes There was no better
money I'm the country than these notes
would be. They would be equivalent TO
shin load OF gold, and would az once
move the entire cotton crop. and reiieVe
the commercial stringcncy.
He asked the serious attention OF the
Senate 10 the bill. While he knew that
his remark that IL would relieve the
panic i'm fifteen days was calculated 20
provoke a smile. he still undertook 70
saw that II would relieve the panic In
Georgia I'm ten days after its passage. u
would do so IN every other Southern
state. They had never had defauting
hank I'm the city Of Savannah except
when they were wiped out OF existence
during the war lie asked the reference
Of the bill 10 the Finance Committee,
and he asked that committee 20 report
II back promptly.
The bill was then read and referred
10 the Finance Committee. II suspends
for six months the operation OF section
sll2 Of the Revised Statutes, which i'm
poses a tax Of 10 per cent. on the notes
OF State banks.
Mr. Voorhees,. chairman OF the Finar ce
Committee reported back the bin intro
duced by him Yesterday TO enable national
banks TO issue circulation TO the amount
Of the par value Of the bonds deposited
bv them. The bill, he said, had not only
the Endorsement OF the Committee on
Finarce and of the Secretary OF the
Treasury but similar measure had
passed the Senate unanimously last ses-
sion.
He did not. by any manner OF means,
proolaim the measure as one Of entire
relief; but he looked upon II as a measure
of relief. IL would. 10 some extent, help
the people. II would authorize an In
crease OF $4,000 coo OF circulation OF ma
tionaI banks on the bonds already de-
posited: there was not a doubt that 1t
would result in an Increase Of from AO-
900 900 TO 10000 00O-an increase Of cur
rency that would be- at this me, So
lace and comfort TO the people In every
quarter Of the United States.
An objection from Mr.. Cockrell sent
the bill over until tomorrow. Mr. Noor-
hees gave notice that he would tomorrow
move 10 put IL upon its passage He also
asked and obtained leave for the Com
mittee on Finance TO sit during the ses-
slons Of the Senate. and gave notice OF
meeting OF that committee for Thursday
next.
The Senate then took ND the question
OF the Montana Senatorship. and Mr..
Hunton made a speech In support of
Mr.. Nantes right to the seat.
At the close Of Mr.. Hunton's speech
the resolution offered last Tuesday by
Mr.. Lodge Rep.. Mass). directing the
Committee on Finance TO report at once
a bill to repeal the purchasing clauses OF
the Sherman act. and that vote be taken
on such repeal on Tuesday, the 22d, was
laid before the Senate. and Mr.. Lodge
made an argument I'm advocacy OF II.
He was far from thinking that the
Sherman act was the only cause OF the
existing state OF things.
He believed the practical effect OF It's
repeal would be tendency To lower the
rates OF interest on money, make money
easier and relieve the existing stringency.