Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-02-04
The Ton Per Cent. Tax.

We are not surprised that the Commit
tee on Banking and Currency OF the
national House OF Representatives re-
ported, as It did on Friday last. against
the repeal OF the law taxing the Issues
of State banks. II. with the Treasury In
the condition in which the official state
merit OF the LIST instant showed 1t to be.
the committee had reported in favor Of
debasing and denationallylng the currency
of the Countrywide best perhaps which
the world has ever seen-the most de-
plorable consequences might have re-
suited. To see the Federal Government
increasing its bonded Indebtedness by
fifty millions of dollars, and this with
out having any assurance that It VIII
not soon have to be still further in
creased, is TO read page Of such financial
history as had not been made In this
country since the war between the States
became fragrant.
II, under these circumstances, the Com
mittee of Banking and Currency had re-
ported In favor of opening the fiood-gates
OF the old State-bank system. and
deluging the land with shinplasters. whose
sole recommendation was that they
would not circulate away from home, but
would fee the money centres. we know
not what disastrous results to the whole
business community might have followed.
Yet the delusive plea that deprecated
currency would be more easily borrowed
than national-bank notes or greenbachs
has led many would-be borrowers Into the
local-currency faction. These men could
not. 70 save their lives. explain how
the State banks could afford to lend
money at a lower rate of interest than the
national banks unless the former were
by law empowered to issue circulating
notes based upon their debts rather than
upon their paid-up capital.
1t IL useless to claim that bank whose
charter authorized 1t TO issue three paper
dollars for every gold or silver dollar
In its vaults, would be as good bank
as one Of those established under the ma
tional- banking act. Ard yet even that
sort Of currency no bank could AFFORD
10 lend out without either requiring the
same sort Of security which the national
banks require. or else running the risk
Of losing all its capital. A bank with one
hundred thousand dollars Of paid-up CAPT.
tai issuing circulating notes to the amount
Of three hundred thousand dollars. or So
called dollars. would not commend Itself
TO the confidence of the business COM
munity, but would probably, like Lord
Dundreary's bird. have TO flock by It
self" Good money cannot be, and will
not be. expected from any but the best
banks. let financial schemers do what
they will.
But will the report Of the committee
be adopted by the House Of Representa-
tives? We do not know that 1t viii
ever get there, as Inv committee the motion
TO reconsider the rejecting vote was voted
down. But we do not now fear the pro-
posed repeal of the 10 per cent. tax. the
Senate will never concur in the passage
OF such a hin. II 1t had any strength
I'm that body when Congress first assem-
bleG. 1t has none now.
One more Objectionable currency scheme
| is thus dome to death" We rejoice that
| the people are not to be allowed TO make
the experiment OF trying to establish
good banks regulated by bad laws.