The Providence news. (Providence [R.I.]) 1891-1906, 1893-09-04
State Bank Notes on Security Ap-
proved by Congress.
IMPORTANT SECRET CONFERENCE
scheme to Abolish National Banks W ith-
cut Returning to wildcat Money
President 4 leveland said to Be Favor
ablc tn tho P1an.

secret conference helu Saturuay at WASH
ington for the purpose of shaping a policy
on the much discussed proposition to re-
peal the 10 per cent. State bank tax.
There have been many propositions sug-
gested for the increase OF the bank cur
rency and all have been opposed to some
extent by men who insist that 10 per cent.
tax on banks shall be repealed, so as 70
afford opportunity for the restoration Of
State bank circulation. The instability OF
some of the State bank money has always
been responsible for the resistance to n
return to this currency. and the fear OF
renewal of the bills OF the 'wild cat"
money days has made the opponents OF
the repealvery positive.
But there have been many persons who
have thought that circulation OF greater
extent and fexibility could be provided,
and that perhaps it would be possible to
supply a substitute for the national bank
currency that would have all its security
and not depend ON Government bonds,
new or old, to secure It,
The President, the Secretary OF the
Treasury, the Speaker of the House Of
Representatives,, Representatives, Hall, Of
Missouri, and Warner, of New York, MEM
bers OF the House Committee on Banking
and Currency, and one other person had a
talk at the Treasury Saturday, about q
plan which may be suggested to the House
by bill, IL it shall be found to be acceptable
to men of enlightened and conservative
views of finance.
The Secretary, it is understood, asked
the opinions of the other gentlemen about
a proposition that was still to be framed.
1t looked like repeal OF the statute i'm
posing a tax on State banks and the issue
TO national banks and other banks that
should qualify by taking State charters of
circulating notes. uniform in appearances
and prepared by the government.
All national banks would transfer their
charters and take out this circulation in
place of that now issued, the notes for
circulation to be so prepared AS to afford
all the protection possible against counter
feiting and to be supplied to the banks at
an expense sufficient to compensate the
government for preparing them.
In place OF the government bonds now
required to be deposited to secure the
money issue by banks of the States, the
law would provide in each State, under
the national law and in a uniform way, for
the deposit of approved stocks and bonds
for security OF "A character co be decided
upon as matter OF detail. the agreement
to be alike as to all the States.
As the members Of this conference were
reticent after the meeting, 1t rs difficult to
give the terms OF tue exact proposition
put forward, but il looked TO the adoption
l. .s. .I.fss .r..I
as no State bank was secured during the
period before the war, and by such safe
guards suggested by the National govern
ment az can Ice properly extended.
1t was stated that 81 national banks In
the State of Massachusetts, were prepared
to surrender their national bank charters
and to take up State charters under sys-
tenn like that indicated
Assurance was also given that there were
many strong banks in New York City that
would be ready to accept the plan when it
had been matured and submitted for the
consideration OF Congress.
There is no doubt that this suggestion,
il it be carried into Congress, as IT undoubt-
edly will, will have great deal to do with
strengthening the repeal vote in the Sen
ate, where some OF the southern Senator'S
are kept from supporting the repeal by the
notion that a sJoppage Of silver purchase
and of the issue of Treasury notes on the
bullion purchased under the Sherman law
will prevent that supply OF currency for
which the south has been making constant
demands.
The fact that the conference was re-
stricted outside of the executive reprcsen-
tatives TO members of tho House aud the
Speaker indicated that the Administration
il it intends 20 offer this proposition as a
part of its policy, has determined that it
shall proceed from the House and not from
the Senate, and that it is not 10 be made q
compromise for the repeal bill.