The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1893-09-14
TO REVIVE STATE BANKS.
PRESIDENT CLEVELAND IN FAVOR OF
THE PROPOSITION.

WASHINGTON, ID. g., Sept. GA
special dispatch from Washington to
the Baltimore Sun says there was a
conference at the Treasury Depart.
menu SATURDAY that may have an im-
portanG bearing on the currency Iepis-
lation to be enacted by the present Con
gress: Secretary Carlisle had assem-
bled in his Office to meet him Speaker
Crisp, Representative Warner, of New
York, and Representative Hall, of Mis-.
souri,. The two latter are members of
the llouse committee on banking and
currency. The conference was called
TO consider what sort of currencv leg
islation ought to be enacted to supple
ment the repeal of the silver purchase
law. There is Il demand on the part of
the business people in many parts OF
the South and West for some reasona
bic and safe increase in the volume of
currency, and aside from this there is
feeling that Is shared in by many of
the soundesJ financial authorities in
the country, including several of the
committee on banking and currency,
that there ought to be an entire revis-
ion Of the banking and currency sys-
tenn Of the country. The currency of
the United States is now a patch work
ALTAR. there being, counting all the
different kinds Of paper and metallic
money, no less than nine different
kinds OF currency In circulation. The
rapid decrease Of the public debt, with
the certainty that it will disappear al
together in comparatively few years,
makes it necessary also to take into
consideration the question of what is
To be done to continue the national
bank circulation or provide some sub
Stltute for it. At present the basis for
the bank circulation is diminishing
with every call of bonds and at the
same time the growth of the country
Is increasing the need for the banks
and their circulation. 1t is the opinion
OF many of the authorities on financial
matters here that it is now time to look
about and settle upon some permanent
system OF currency and banks, and it
was to consider these questions that
lhe conference OF yesterday was called.
The conference was confidential in
It's nature. The gentlemen who were
present DO not feel at liberty to talk
freely as TO what was done. 1t can be
said, however, that the plan suggested
during the last Congress of repeating
the tax on State banks circulation, but
requiring all such institutions desiring
to issue circulating notes TO deposit
with the Treasurer of the Enited
states certain approved securities, to
secure their bond, was discussed at
length. There are many persons to
whom a mention of the repeal of the
tax on State bank notes recalls the
wildcat banks Of some of the Western
States, the money of which was not
good ten miles from the place where it
was issued This feeling against State
OallkS has tendency to make many Of
the members OF the committee on bank
ing and currency, who realize that |
ought to be done before the |
national bank circulation is fur
ther contracted by the redemp-
ton OF more bonds, hesitate to
approve of any sort of revival
OF the State banks. This feeling
was expressed at the conference yes.
terday and was discussed with the re.
'ult that 1t can be confidently asserted |
,nat II any Dill Is Introduced at the
present session Of Congress with the
approval Of President Cleveland and
secretary Carlisle for the repeal of the
state bank tax it will be one in which
he banks, while they may be called
state banks, will be under national su-
'ervlsion. In other words, while the
banks may receive their charters from
he States the national government
vii supply their notes and will pre-
scribe the class OF securities on which |
hey shall be issued. The effect of the
change will be much the same as if the |
present national banking laws were |
so as to allow certain other |
securities, in addition to government
bonds, to be deposited to secure circu.
lation. The fact was developed at the |
conference that President Cleveland |
will favor a bill for the repeal of the
State bank tax If there are such safe.
guards thrown around their circula-
ton as will insure their maintenance
at par with gold.
The holding Of this conference does
not necessarily mean that an admins
tratiOn measure for the reform of the
banking system of the country is to be
reported from the banking and curren-
cy committee ut once. There will be
ah avalanche of bills Of all sorts bearing
on the currency and banking laws in,
troduced as soon as the rules of the
liouse have been adopted. These will
all he referred to the banking and cur
rency committee. 1t is not probable. |
however, that there will be immediate
acllon by that committee, AS it is |
thought best to proceed with care i'm |
'''"Ni"S "iiy sweeping reform In the |
currency. The gentlemen who partici-
pated IN yesterdays conference realize
That 1t Will not do to make mistake
on such serious question, and no bill
VIII be reported that does not carry in
ltsell the assurance that every dollar
Chat may be issued under it will be
worth dollar in gold. The end aimed
81 Is 10 provide currency which will
De as sound as the national bank cur
'ehcy has been, but which will at the
".me time have more elasticity, and
Hll! expand when there is a demand
or 1t and contract when it Is not need
"a. The Southern planters and the
Western farmers contend that If they
lad such system there would not be
he present difficulty that is expert
need every year about the local banks
;ettlng money for the movement of
heir crops. One of the immediate eff.
orts of the conference yesterday is ex-
'ected to be to give the Democratic
'enatorS who are still c0ntending for
rec coinage an lntimation that the ad-
will support a reasonable
EsgNIZ 1