The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1893-09-06
Good News from Washington.

WASHINGTON, Sept. 4.-Mr. Cleveland
is announced in favor Of State bank cur
rency. FIe has discussed the matter with
number Of members Of Congress, and
has reached the conclusion that the repeal
of the 10 per cent tax on the issue of State
banks will be satisfactory to all sections
of the country. He has many letters
from New York, Boston and Chicago
bankers advocating the plan. All these
letters state that provision must be made,
however, for a perfectly sound and safe
currency.
Secretary Carlisle is now drafting bill
with this end in view. 1t will provide
for the repeal of the 10 per cent tax on
State banks, so as to enable them to issue
currency, and will also provide for the
reorganization of national banks as State
banks.
Mr.. Cleveland and Secretary Carlisle
realize that there is a demand for larger
volume of currency. Government bonds
are becoming scarce, and within few
years number of them will mature and
must be taken up. Therefore, instead Of
increasing under tho present law, the na-
tional bank currency must decrease.
The question presented to Mr.. Cleve-
land, Secretary Carlisle and the leaders
in the two houses Of Congress was
whether there should be new issue of
bonds, as proposed by Senator Sherman,
or whether the platform Of the party as
to State banks should be carried out.
Western and Southern democrats are vi
olently opposed to any further bond is
sue, and it has become evident that no
such thing is possible, therefore provision
for bank currency must be made by q
State bank bill.
Full details of the bill have not yet
been agreed upon, though it has been
outlined. Secretary Carlisle and some
Of the house leaders have discussed the
matter and Mr.. Carlisle is drafting bill
looking to change in the banking laws.
It will provide for the reorganization of
national banks as State institutions and
the repeal of the 10 per cent tax will per-
init them to issue currency the same as
national banks now do. The currency
will be based upon State, municipal
aud other municipal bonds or pri-
vate securities OF such a character as to
meet the approval Of the government au-
thorities. Tho government will have
supervision over the banks as it now has
over national banks, and the govern
ment is to be security for the issue. All
State banks now existing Or organized in
the future will be be permitted to issue
currency, provided they comply with
the requirements of the law, but it will
provide against the issue Of currency by
any bank which does not comply with
the full text of the law; that is, the 10
per cent tax will apply to such banks:
That feature of the present national
banking law allowing banks only to is
sue currency to the amount of 9S per
cent Of their bonds will probably be re-
tanned.
Under this law Secretary Carlisle be-
lieves that the circulating medium of
this country will be materially increas-
ed. He believes further that it will be
satisfactory to all the people. There will
be/no provision in the law, as in the ma
tional bank law, providing against loans
being made on real estate.
The present programme is for the house
to dispose of this measure before the
ways and means committee reports its
tariff bill, in order that the two measures
will not be before the house at the same
time. 1T il believed that this bank bill
will be adopted by both houses and be-
come a law before the Christmas holi-
days