The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1893-09-12
THAT TEN PER CENT.
PRESIDENT CLETELAND IS SAID TO
FAVOR THE REPEAL OF THE TAX.
He HEARS The COUNTRY SPEAKING,
From the South and From the West the Peo-
pie Demand it-Checrful Reports If Only
True, a New Banking Biii-Diplomats
Had tie Call Monday.

state bank currency. lie mas uiScuSSeu tIe
matter with number of members OF con-
sress, and has reached the conclusion
that the repeal of the 10 per cent tax on
the issue of state banks will be satisfac-
tory to all sections of the country. He
has many letters from New York, Boston
and Chicago bankers, advocating the plan.
All these letters state that provision must
be made, however, for a perfectly sound
and safe currency.
If this interesting rumor has anything
ip it Secretary Carlisle is now drafting a
bill with this end in view. 1t will provide
for the repeal of the 10 per cent tax on
state banks so as to enable them to issue
currency, and will also provide for the
reorganization of national banks as state
banks
Mr. Cleveland and Secretary Carlisle
realize that there is IA demand for larger
volume CT currency. Government bonds
are becoming scarce, and within a lew
years Il number of them will mature and
must be taken up. Therefore, instead
OF increasing under the present law, the
national bank currency must decrease.
The Platform shermnn9
The question presented to Mr.. Cleveland
Secretary Carlisle and the leaders in tho
should be new issue of bonds, as pro
posed by Senator Sherman, or whether the
platform OF the party as 10 state pdIihs
should be carried out. Western and south
ern democrats are violently opposed 10 an!
further bond issue. and 1t has become eNl-
dent that no such thing is possible, there
fore. provision for bank currency must
be made by state bank bIll.
Full details of the bill have not yet been
agreed upon. though it has been outlined.
icl.a and of the house
leaders have discussed the matter and MI.
Carlisle is drafting Il bill looking to a
change III the banking laws. 1t VIII pro,
vide for the Reorganization OF national
banks as state institutions and the repeal
of the 10 per cent tax Will permit them 10
issue currency the same as national banks
now do. The currency Will be based upon
state, municipal and other bonds or pfl-
vate securities of such 4 character as TO
meet the approval of the government au-
thNrities The government will have SUI
pervision over the banks as it now has
over national banks and the government Is
10 be security for the issue. All state
banks now existing or organized Ill the fll-
lure will be permitted to issue currency,
provided they comply with the require.
ments of the law, but it will provide
against. the issue of currency by any pahk
which does not comply with the full text
of the law; that is. the 10 per cent tax VII!
apply to such banks. That feature of the
present national banking law allowing
banks only to issue currency to the amount
of 90 per cent of their bonds Will probably
be retained.
Proper Change.
Under this law Secretary Carlisle be-
Heves that the circulating medium OF TINS
country will be materially increased. lie
believes further that it will be Satislac-
tory to all the people. There Will he no
provision in the laW, as in the national
bank law. providing against loans beng
made on real estate:
Mr.. Warner. of New York, and Mr..
Hall. of Missouri, are engaged with Mr.
Carlisle in the preparation of this hlll. rs
soon as completed it will be introduced III
the house bv either Mr.. Hall or Mr.. War
ncr. The committee on banking ana rui
rencv will report il favorabiy and the lndl-
cations are that it viii pass without I'M
necessary delay.
The present programme is for the house
to dispose of this measure before the ways
and means committee reports its tarll
bill in order that the two measures VIII
not be before the house ut the same time
1t is believed that this bank bill will he
adopted by both houses and become Il law
before the Christmas holidays.
Promises to Speak.
President Cleveland was today invited
70 attend the anniversary Of the laying OF
the corner stone of the United States capt.
fol building on Monday, September lSth.
Mr.. Cleveland said he would attend and
also promised to make an address,
Aha needed sisf Jilt 5l1sieFcFS.
The South Carolina delegation had
meeting this afternoon and decided 10 oHel
resolutions in congress asking tor reIlel Tor
the hurricane district in South Carolina.
Congressman Murray. the colored memb2r
has drawn up joint resolution which ne
viii offer on Wednesday asking 1or an APP
nropration Of S2tD.Uuo.
IL j. asked for the colored people ana
the resolution may pass. though mere lS
no precedent in such cases ana Some 81
the members of the house THINK II danger
Gus 10 establish one.
SIN thr condition is 50 serious that
congress may find some way to give succof.
senator. ~ i'll speak.
The house was not in session today and
gill not meet again unit! Wednesday
Inc senate spent the day continuing ne
silver debate Senator CuHon spoke TOT
unconditional repeal. Ii - beginning 20
appear that vote may not he rrochPI
i'm the sruate before September 9th \
number of senators who did not intend 10
speak on this question gave noIcG To-Day
that they desire to be heard. - loh@ Us
ona wants TO speak 10 vote can be taken.
II is. however. not believed that DEBATE
will last more than three weeks.
.-.,,,.ny's Al: b.-esi..r.
Ger,nanv's first ambassador to the
United States, Baron, V13n! Sar-
ma Icli>ch presented his ere
Grntials to the presi lent shortly after noon
today and the customary speeches OF mI-
tral good will were exchanged. The am
bassa,!or. accompanied by the secretary OF
the German embassy, Baron ketIcr, called
on Secretary Gresham al the state depart
rneut and the three with Assistant Secre-
tary Adee. went to the white house to-
aather The two diplomats We're resplen-
dent in gold lace aud carried swords. Soc
rotary Gresham presented the new diplomat
to the president The speeches OF the
German ambassador and president Glove
lands reply were unusually brief, but very