The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-12-09
RhPEALING THE STATE BANK TAX
Outlines or Measure Suggested by tho
sue-Commtttee on Baking.

Outlines OF Measure Suggested by tho
sue-Commtttee on Banking.
WARRINGTON, Dec 8.-The subcommittee Of
the Committee on Banking and Currency. OF
which Mir. Cox OF Tennessee is Chairman. APP
pointed TO consider Legislation relating to the
| repeal Of the ten per cent. tax on State banks.
| to-day reported to the full committee that 1t
had adopted the following rs the provisional
outline OF the general features Of a bill which
| 1t proposes to draft as substitute for pend
| ing bills on the subject:
srcrioN 1.-The tax of ten per cent against State
bank notes Ac paid out aud used as currency is re-
| pealed.
SEQ 2.-Bxespt ss below provided. no state bank
notes. 40. shall be paid out and used currency out
side OF the State OF their issue except subject PEN
| atty Of ten per cent each time paid out.
n B-Itis not expected that this penalty would be
generally collected. any than is the tax imposed
by our present laws but rather that fast the pro-
hibitsd notes into tho hands OF responsible par
ties outside OF the State OF their ISSUE the penalty
paying them out will them to be promptly re-
tarnsd for redemption and thus effectively kept within
sse ss.a, esnt Gotss may b, paid on. and used
Blank notes to be furnished and issus be regis,
sharply d.tinetlve design so IS % show that they
IN S ss' 81 ;h are aud
Bj banks :sniGs snch nNte, to be to inspee.
PfG W. to5 n.,O1 or Psns; Ga sxesP 70
Comptroier having no RsneIal supervision Of the st
Outstanding notes of each bank to be limited to
20 FER cent Of PAD up ana unln paired capital
nrst hen on ali assets OF issuing bank and liability
against toekholdors TO an amount equal to their stock
EJ An assessment of half per cent to be paid on
standing more than year. so long as and whenever
r%n for 81 S a.
MIA mate I 81 notes and meet expenses
81; state bank noes may also be paid out aud
compliance with "a! l6I e. and ldl Of section on de-
enpsion Of notes. 81 unsd States state mnntSs
Ac securities TO amour: OF par OF notes to be issued
scribed In this bill
In connection with the foregoing outline six
points may be noted:
First-The unconstitutional use OF the taxing power
for purposes other than revenue IL abandoned
upon the .amtiediy conssitutona tight 70 rssaiats
THiTdsfh. details Of the Federal dutie. prescribed
are confined a. nearly as may be. to administrative
antes ssain.t issue periodical
FER. With the sasticity Of the currency or Win ,Ss
organization Of bushes. OF the banks which be
fourth-s e6aI redemption facilities doubtless
and detail rather than of principle hence are reserved
fifth-Ths privilege. given lnnure to national banks
siSsh"fss aims :ouEh, BY the plan, proposed are.
sisi control leave as ~sc as possible, and
g: promptly a. may ?; .r.1SIs for legitimate oea!
supply TO local Institutions under conditions which
insure ample supply OF sound currency TO foresAI
these deInaEds for nat money which are logical anil
actual OF the present system by which
Federal Government has a-suned the exclusive duty
OF providing for our bank note currency,
1t must be understood that no member OF
the aub- committee is personally committed 10
any OF the details outlined above and that
this subcommittee is not ready to make
ment OF the progress OF it's work for the infor-
nation OF tho full committee. and in the hope
to profit by the discussion by 1t OF these or
other points.