The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-09-07
STATE BANK TAX REPEAL.
1T GETS MUCH ATTENTION NOW FROM
CONGRESsMKN

The South and IL. Continued and Varied
Efforts In Favor OF the State Bnnks-Its
Champions !. the Senate and In the House.
WASHINGTON. Sept 6-Members OF Congress
are still talking OF that Saturday conference
at the Treasury, and the suggestions emanat-
ing from 1t have opened up lively discussion.
The proposition to repeal the State bank tax
which cannot be said as yet to have taken any
definite and final shape, is. however. n subject
OF much comment. and under the restrictions
Indicated it Is now believed that when the time
comes to submit It. the proposition will be re-
ccived with favor. After all. tho system sug-
Eested does not differ materially from the
present national banking system. There may
be change OF name. OF course. Int the Ad-
ministration will Insist upon r~N.iininG the
present system Of examination and Govern
ment supervision.
The only material change IL in tho extension
OF the basis OF the bnnk currency. The banks
will be permitted to base their currency upon
municipal. county.or state bonds r such other
securities OF sound sort as will meet the APP
proval OF the Government authorities. This
plan. 1t ). believed. would result in reason
ably safe expansion OF the currency and yet
avoid anything like the wildcat banking
troubles OF the period Just before the war; All
OF the details, however. remain to be figured
out later. Then the policy to be adopted will
be finally outlined and formally presented.
The pressure on Congress to repeal the tax
on the circulation Of State banks has been
growing steadily since 1876. when Mr.. Riddle
OF Tennessee introduced In the House the fret
bill on the subject In 1875 Mr.. Riddle made
q second futile attempt In which he was
Joined by his colleague. Mr.. Atkins. and by
Mr. Roberts OF Maryland. There the matter
rested until 1879. when Mr. Vance and Mr..
Davis OF North Carolina and Mr.. Buckner OF
Missouri put In trio OF repeal bills. Three
years later Mr.. Gibson Of Georgia introduced
such bill. and was Joined by Mr.. Hutchins
of New York. who stands as the only
Representative or Senator from an Eastern
issi Mr. f bbbls usn so sHP0S' Carolina
Introduced the only bill OF the Kind that year.
but Later the number Of repeal pills
ollnas. In 1888 there were bills from South
Carolina and Georgia. and in the next year
ate, introd uced in that body the first bill to
relieve State banks of their burdens In tho
fourth and last repeal bill. and Georgia and
Tennessee supported the North Carolina mon.
asopss 81 .ssp a5oP&Ssa Band
Missouri. and Gen. Wheeler OF Alabama being
:, It was only in the last Congress that any real
the, eleven bills then offered. three were put in
to propose the repeal Four Of the ethers cam n
from Sens sM Hnrrs Is, and Messrs Rchhrdson
other new convert was Mr. Brecknridse Of
Arkansas.
/ is, curious to note that from Missouri
other commonwealth. Mr.. Bland alone pro-
posed the repeal OF the tax; and that from Ne
proposition appeared. The demand comes al:
mos most &, yholly from the South which 1, In 1891
In
the Dakotas. and 815 in ali the other States.
;, The most strenuous champions Of tax repeal
Herbert of Alabama. who have preached the
doctrine doe on the STUMP from Boston westward
the West and South are large buyers and
consequently large debtors: that the present
Ss n te isnGn H. WIZ &. Issn
You'd mate haks SaafS OF
East in in ali fnaneial aiia isA0 Mr.. Hare ter
has advanced the proposition that cur
municipal. and railroad bonds, but he does not
explain how. in the case OF def aut in the pay
and ID s
States. whore the largest debts exist. particu-
larry rehssurinG on this point,
are 50 varied that were legislation enacted
simply to repeal the tax. tho currency issued
in vaius. Thus in Massachusetts the provis
ions OF aw es rs so 8bs II that 1r
Is not much to choose between State and ma
tional banks. In New York and Iowa the
or half the minimum for n national bank: in
Missouri q State bank can, do business
Dakotas and Kansas but S. 900 o is Needed e
In many OF the States the provisions as to cir
culaton are the same as they were when tho
rebellion caused the collapse OF the State
banks. In other States new laws have been
enacted: in which no provision Is made for any
circu alton whatever. In Michigan. where
the savings banks are subject to State control.
and to an inspection patterned after the nation
al system l., ne State hanks are pusndihG inc
In his letter OF acceptance Mr.. Cleveland
gave some announcement to repeating the tax
by saying that he was in favor OF State bank
Issues il properly guarded. IThe question Is
whether the Administration would consider
proper those safeguards that would meet tho
approval OF the South which section alone has
called for State currency