New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-30
STATE BANKS AND TIE TAX.
BILLS NOW PENDING IN THE HOUSE TO
PROVIDE FOR WILDCAT" CURRENCY.
THE SOUTHERN MEMBERS PRACTICALLY UNAN
IMoUs IN CLAMoRING FOR TIE RE
PEAL OF THE PRESENT LAW.

IMoUs IN CLAMoRING FOR TIE RE
PEAL OF THE PRESENT LAW.
ley TELEGRAPH TO THE rRIBrSEl
Washington. Oct. 29.-Charman Springer. OF the
Committee on Banking and Currency, is of the
opinion that the vote on the resolution OF inquiry
calling upon the Secretary of the Treasury for
certain information relating to the old State banks
of issue, and the laws ard regulations OF the sew
eral States relating thereto, was fair test Oh tne
sentiment OF the House Of Represf natives on the
proposition to repeal the tax on State BANK crcu-
lation. This opinion Is not shared by some OF
his colleagues one Of whom to-day pointed out
that Mr.. Bcatner. OF Louisiana. who voted for the
resolution is the author OF a bill to repeal the
tax The vote was exceedingly significant IN
another respect, however. as an analysis Oh IL
shows. According the detailed vote, as pub
lished In 1.-The Congressional Record, there were
ninety-five in the affirmative and hfty-nine in
the negative. The affirmative votes were cast by
forty-eight Republicans forty-two Democrats ana
five Populists. All OF the negative votes were cast
by Democrats, all except three OF whom-MessrS'
Cummings, Of New-York. and Hunter and Nc
Dannold, Of Illinois-represent districts in the
solid South" while of the forty-two Democrats
recorded in favor of the resolution only iour-
Me1srs Boatner of Louisiana, Brawley. of South
Carolina Paynter, of Kentucky, and Talbot. of
Acknowledgement Southern districts, and twenty
eight represent districts west of the Alleghenies.
It was the solid South against the rest Of the
Union.
IT RANKS NEXT TO THE TARIFF
In conversation with Tribune correspondent
yesterday Chairman Wilson. OF the Ways and
Means Committee. who IL understood to be IN
favor of the repeal OF the tax on State bank Cir
cuaton remarked that next to the tariff the
question OF devising and establishing "a flexible
currency is the most important with which
this Congress will have to deal. There Is no DOUBT
that most vigorous and earnest effort Will be
made to repeal the State bank circulation
with that end In view or that the advocates OF
repeal are -edingy hopeful that the effort VIII
be crowned with success. Some of them assert in
a confident tone that Secretary Carlisle is strongly
in favor of repeal. and that President Cleveland
will approve an act for that purpose If one shall
be sent to him by Congress They also assert that
a bill will be favorably reported from the Commit
tee on Banking and Currency early In December,
and that it will be passed by the House before the
Tariff bill is taken up for consideration and they
also hopeful Of a favorable report from the
Senate Committee on Finance.
OF bills relating to this subject thirteen have
been referred to the Committee on Banking ana
Currency. All except two Of them were intro
duced by Southern men, Seven of these DIS pro-
vide Cor the repeal of all laws which impose IA
tax of 10 per centum or any other sum on the
circulating notes of State banks or State banking
associations or which impose a tax on all banks
and banking associations which receive or pay OUT
the notes or circulation Of other than Natioha
banks or which discriminate in taxation against
the circulating of State banks and State bank
ing associations" Mono of these bills proposes 10
relieve National banks of the tax on circulation
The authors of the seven bills referred 10 are
Messrs. Lester of Georgia. Richardson, OF Ten
nessee: Cox OF Tennessee Wheeler Of Alabama.
Blanchard. of Louisiana; Boatner. OF Louisiana
and Henderson, of North Carolina.
PROVISIONS OF SOME OF THE BILLS
The bill offered by Mr. Meredith, Of Virginia re-
peals the 10 per cent tax on state bank crcuic-
ton and provides that hereafter no other or
higher rate percentage Of taxation snail ne
imposed upon the issue and circulation OF the
notes of State b ks and State banking associations
by whomsoever issued. paid out or circulated than
Is or shall be imposed upon the issue and crcula-
ton Of the notes OF National banking associa-
tons"
The bill offered by Mr. Harter. OF Ohio goes
step further IT provides that the tax on state
hank notes shall be reduced to per centum per
annum "tpon ali such notes bear upon either
the face or back thereof the plainly printed ana
clearly stated agreement OF the State IN "hch
the bank issuing such notes is located. to redeem
such notes in egal-tender money OF the tniteH
States upon presentation some proper officer or
said State" Section OF the bill provides tha'
there shall be mo reduction in the tax upon any
note or notes intended 10 circulate as money which
do not bear the agreement and guaranty provided
for in Section L.
WHAT COLONEL OATES WOULD Do.
Colonel Oates of Alabama. proposes to suspend
the operation of the law In the case OF any state
banking association or State bank which snail de-
DC SIX with 1.-THE state Treasurer-or other safe de-
STORY designated for that purpose by the law Of
such State-an amount Of the lawful money OF
the United States the solvent bonds OF par
vs,c of such state its counties or municipalities.
enual 10 100 per centum OF the aggregate amount
NJ notes TO be issued" which deposits are to be
held for the security and redemption OF such notes
The bill provides that the aggregate amount OF
State bank issues shall in no case exceed - per
CAPITA of the population of such State as ascer-
tanned by the last preceding census OF the United
States" In the minds OF some men who recall
tho financial exploits OF State Treasurers In Ala
bama and five or six other States Of the solid
South within the last dozen years the suggestion
viii be likely arise that the office OF state
Treasurer is by no means such safe depository
as honest bankers or innocent note noiders wouid
have a right to demand
The bi introduced by Mr.. English. OF New
Jersey provides that In case any state BANK snail
deposit as sec irty for the redemption Of the notes
issued to il "sucn State municipal bonds or Sc
CT rites as may be approved by the Governor and
Treasurer OF said state under a law enacted by |
the state for hat purpose, and shall file satisfac-
tory evidence with the Controller Of the Currency |
that this provision has been strictly compiled with |
and upon the certificate Of the said Controller of
the Currency that effect. ne being satisfied that
said securities are valid and that the intent of this
act has been complied with. then the Commissioner
of Internal Revenue shall cause rebate Of 81 |
per centum to be made in the 10 per centum tax |
now imposed By law all such issue OF State |
banks so secured and certified, and said notes |
thus secured shall bear tax whatever upon |
being paid out received by any institution or
individuals" 1t s hardly 10 be expected that |
Mr. Englishs bill Will find favor In the eyes OF |
Southern Democrats who demand that "the hand |
Of Federal oppression shall be lifted from the bank
ing laws and systems ofthe sovereign States" and |
who will never consent that the Urited States Con-
troller OF the Currency shall have anything to |
say to what shall constitute valid securities
for the circulating notes of State banks
MOST ELABORATE BILL.
Altogether the most comprehensive and elaborate |
this subject hae far in