Daily Texarkana Democrat., 1893-11-18
NEW FINANCIAL SCHEME.
Chairman Springer, of the Commit
tee on Banking and Curren-
cy, Evolves a Scheme.

Chalrman springer, OF the Commlt-
tee on Banking and Curren-
cy, Evolves a Scheme.
1t is now a generally accepted fact,
among those best advised on the sub
ject, that any financial legislation,
which may become law, will only be
the result of harmonious action be-
tween the two political parties, DEM
ocratic and Republican, and will not
be credited as the individual achieve
ment of either. When asked for a
copy of the measure understood
to be under consideration by himself
and colleges Mr.. Springer stated that
it could not be given out in detail un-
til it had met the full approval of the
various other members of the COM
mittees over which he presided 1--WE
have been engaged for several
months" said Mr.. Springer, "in the
preparation of measure which at the
proper time l will introduce in the
House and have referred to the COM
mittee on banking and currency, of
which | am chairman. Our object is
to respond as far as possible to the rea-
sonable demands of the country for q
better system of currency and to pro-
vide some plan by which our curren-
cy msy be placed upon better basis.
An effort in my judgement, to return
to the system of state banks which
prevailed before the war would be fu-
tile, and even if the 10 per cent tax on
state bank circulation should be re-
moved it would furnish little or no
relief to the country. The reason of
this is obvious. A great many states
in the union have adopted constitu-
tional provisions prohibiting the char
ter of banks in those states for the
purpose of issuing or with authority
to issue circulating notes. Such notes,
therefore, could only be Of local value
and while some states would provide
safe system, the experience of the
past shows that irredeemable issues Of
paper money would flood the country
that counterfeiting would be universal
and the currency system Of the coun-
try would be thrown in confusion.
What is required aud demanded by
the country is a national currency
which shall at all times be convertible
into coin on demand, which sh all be
elastic in character sufficient in vol
ume and 20 distributed throughout
the country as to respond to the wants
of trade and prevent congestion of
the great money centers.
do not think the present national
banking system has proved itself
equal to the demands Of the country
continued Mr.. Springer "There is
less than $2O0,000,OOO of national bank
notes now in circulation and there is
no prospects of an increased clrcula-
tion unless more favorable legislation
to the banks is secured. The Govern
ment having practically relieved the
banks of the responsibility of redeem
ing their own notes and the expert
ence of the past demonstrating that
the people do not look to the banks
for redemption. ] do not see why
the needless operation should be car
ried on in theory. The near opproach
to the time when national bonds will
be due and payable, the limited vol
ume of such bonds of this kind and
their high prices in the market prove
conclusively that other security for
circulation must be resorted TO. With
proper legislation under government
al provisions the bonds of the states,
of counties and of certain munlcipali-
ties can be utalizcd for the purpose of
securing national circulation and
banks, state as well as national, depos-
iting such securities ought to be per-
mited to take out currency to at least
80 per cent of the par value Of such
bonds. OF course the strictest scru-
tiny should be exercised in regard to
such bonds and these should not be
accepted unless they had been at par
in the market al least for two years
previous to their deposit and unless
there had never been default in the
payment of interest upon them. Ef-
ficient provisions should be enacted
requiring additional security in case
of the slightest depreciation of these
securities.
TARTEE ID EE0pM