The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-09-05
TAX ON STATE BANKS.
Discussion on the Subject May be
Next in Order.
a THOROUGH REVISION PROBABLE

N Bill with This End in Wow VIII be
One of tho Four to be Introduced when
tho House Finally Adopts It's Rules.
Senator Gray's Views.
A. WARRINGTON. Sept. 5.-The question OF
eepealing the tax on state banks, as called
for In the Chicago platform, is already be-
fore the senate in the shape of bill intro
duced some days ago. Also In the Butler
amendment to the Voorhees, bill, and in
che shape Of another amendment to Mr..
Voorhees, bill, providing for the extension
of the circulation OF national banks. The
latter bill has been effeotually sidetracked,
and there appears to be little hope of res
urrecting It. so that the last named
amendment will go the way of all amend
ments to bills that have been killed by the
process of slow strangulation.
II is predicted, however, that as soon AS
the repeal of the Sherman bill has been
effected the proposition SHOULD that ever
bel to repeal the tax on state banks will
come to the front at once, and when it
does it is probable discussion will be be
gun looking to a thorough revision Of the
financial legislation Of the country, The
idea of basing the circulating notes of
state banks upon state or municipal bonds
does not find favor in the senate for the
reason that such security Is not looked on
Is substantial enough to withstand the
assaults of the stock markets.
Senator Gray, speaking of this matter
Thought the day was not far distant when
this whole subject would have to be con.
sidered, and acted upon by the congress
of the United States. He said tho condi-
xions today and those before the war, when
the state banks were in vogue, was as
widely different as possible. There was no
more danger now Of wild oat banking
than there would be of attempting to en-
force the fugitive slave law.
He lseliev d that the wisdom cf congrps
would evolve some plan upon which the
currency of the people could be based and
given stability that could never be ques
tioned Government bonds would soon
cease to exist and when that time came
the security that now preserves the notes
of national banks and makes them as good
rs the governments obligation would pass
away, and by the mere force Of circum
stances something would have to take
their place. What that substitute should
be was for congress to say. Whatever ii
was, he believed 1t would be rs firm and
substantial as the system now In use. The
substitution Of state banks would add to
the currency of tho people aud Increase
the circulation in small communities
where it was so often needed
In the minds OF other senators the Idea
OF issuing more bonds finds favor, while III
those Of others it is nightmare that
causes unrest and uneasiness. Whether
such proposition could carry is a mooted
question. Some of the strong men of the
senate are on either side.
Senator Voorhees, is perhaps the most
outspoken champion Of state banks on the
floor of the senate. What he means by a
state bank is not the bank so commonly
remembered and associated with ideas re
pugnant to good banking principles. bu
hhe chartered state banks, which have cir
eulation based upon specie itself-gold
and silver. Senator Voorhees, said yester
day that when he made the statement il
bis speech q few days ago that no MAJ
had ever lost dollar through a chartered
state bank he uttered a truth that to th
day had not been denied and could nevel
be. This is the sort of bank he contend.
for.
-1r.s plan also oontempIates govern
mental supervision and inspection, acom
binntion which will, he believes, offer
solution to the problems now before tn
people and give them system of banking
rs firm and reliable as any ever devised bI
man.
There is no gainsaying the fact that
bill with this end in view will be ono o.
The four to be introduced when the hous
has adopted Its rules, and Democrats Ii
abe senate are thus early discussing tn
probability of its passage. In tho senat
II is unlikely that the Democrats viii
have the assistance of the eastern Repub
hcans. as they now have in the attempt t,
repeal the Sherman act