The Providence news. (Providence [R.I.]) 1891-1906, 1893-09-05
THE NATIONS FINANCES
Are Likely to Soon Receive a Gen.
sral 0Yerhaullns.
MANY CHANGES ARE PROPOSED.
Repeal of the state Bank Tax to he
Taken Up In the House what Some
Of tho Leaders Think Of the Needs Of
the Country.
MANY CHANGES ARE PROPOSED.

WASHINGTON, Sep. 5.-The question OF
repeating 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 offered
yesterday and In the shape of another
for the extension OF the circulation Of ma
tional banks The latter bill has been
effectually side tracked and there appears
to be little hope of resurrectinR IL, 30 that
the last named amendment will 60 the
way of all amendments to bills that have
been killed by the process Of slow strang-
ulation.
1t is predicted, however. that as soon as
the repeal of the Sherman bill has been
effected the proposition, should that ever
be, TO repeal the TAX on State banks will
come to the front at once, and when 1t
does il In probable . discussion will be
begun looking to 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 rot find favor In the Senate for the
reason that such security isnot looked upon
as substantial enough to Withstand the a.
saults of the stock markets and does not
obtain that high place in the confidence OF
the people which bonds and evidences of
the indebtedness Of the Federal Govern
ment hold.
Senator Gray, speaking of this matter,
thought the day was not far distant when
this whole subject would have to DO con-
sidered and acted upon by the Congress Of
the United States. He said the conditions
to-day and those before the war, when the
State banks were In vogue, were as widely
different ~ possible.
There was no more danger now of Wild
cat banking then thers would be Of at
tempting to enforce the fugitive slave law.
He believed that the wisdom Of Congress
would evolve some plan upon which the
the currency of the people could b based
and given = stability that could never be
questioned. Government bonds would
soon cease to exist, and when the time
came the security that now preserved the
notes of national banks and made them as
good as the governments obligation would
pass away, and by the mere force
OF circumstances something would have
to take their place What that substi.
tute should be was for Congress to say.
Whatever IL was, he believed it would be
ss Arm and substantial as the system
now In use. The substitution Of State
banks would add to the currency of the
people and increase the circulation In small
communities, where 1t was 50 often
needed.
In the minds OF other Senators the idea
of issuing more bonds finds favor, while
In those Of others 1t 10 a nightmare that
causes unrest and uneasinesss. Whether
such a proposition could carry is mooted
question. Some of the strong men Of the
Senate are on either side.
Senator Voornees, is perhaps the most
outspoken champion OF the S.ate banks on
the fioor of the Senate. What khe means
by a State bank Is not the bank so COM
monty remembered and associated with
ideas repugnant to good banking princi-
pies, but the chartered State banks which
have circulation based upon specie itself
gold or silver. Senator Voorhees, said
that when he made the statement in his
speech few days ago that no man had
ever lost dollar through a chartered
state bank, he uttered a truth that had
not to this day been denied and could
never be. That il the sort Of bank he
contends for. He Is not one Of those who
believes the security Of the notes should be
found In State or municipal bonds, but
he holds that 1t should be based on the
precious metals themselves. This means
that there should he at all times in the
vaults of the banks one third Of the
amount Of its notes in gold and silver, an
amount amply sufficient, from his point
of view, to redeem any of the notes of the
bank that might at any time be offered for
redemption, and upon which TO transact
the business of the community in
which the bank is located. His plan
also contemplates governmental super
vision and inspection, combination
which will, he believes, offer solution TO
the problem now before the people and
give them system Of banking as firm
and reliable as any ever devised by man.
There is no gainsaying the fact that
bill with this end in view will be one Of
the first to be introduced when the House
has adopted it's rules, and Democrats in
the Senate are thus early discussing the
probability of its passage In the Senate
It is unlikely that the Democrats will have
the assistance of the eastern Republicans
as they now have In the attempt TO repeal
the Sherman act Whatever may be the
bill introduced, according to Mr.. Voorhees,,
il will be carefully amended and guarded
30 hat in no sense eau 1t be charged
against the Democratic party that it is
seeking to return TO the days Of so called
wild cat banking.