The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-27
STATE BANK TAX.
Representative Springer So
Against Its Repeal.
Speaks

Against Its Repeal.
WASHINGTON. May 26.-The Brawley
bill to remit the 10 per cent. tax clear
ing house certificates and ether notes is
sued by private and State banking asso-
Citations between Aug. /. 1s93 and Oct. 10.
1898, the period of financial depression, had
the right OF way in the House to day.
Mr.. Springer of Illinois. chairman of the
committee on banking and currency, made
a speech against total repeal OF the State
bank tax laws. while he favored the re-
mission OF the tax or notes issued dur
ing the financial stringency. Mr.. Springer
spoke fully on the evils resulting from
the issue of State bank notes TO the peo-
pie at large and the trade and commerce
of the country. He gave a full history
of the failures and losses arising from
the wildcat banking circulation which
preceded the greenbacks. and then eulo-
gized his own bill for remedying all these
evils. now before the committee on banking
and currency He described the bill section
by section. the gist of the measure being
that all national notes issued shall be pro
of 20 per cent. and United States, State.
town or county bonds for the other 80 per
tribution, even if it calls for the establish
mSnt of a bank in every village. The
notes are to be issued in three classes:
gold deposited and pays two-te7ths or 1
per cent. per annum to the government
sion. series to equal 50 psr csns Of all
the currency issued TO the bank, which must
pay 1 per cent. per annum; Ind Series Z
per cent, which must pay TO the govern
ment per cent. per anaum: The object
Of the series is to secure the necessary
elasticity Glasses and b would furnish all
the currency needed for the ordinary bust
ness of the people. Class would not be
and was worth the interest charged. When
the stringency subsdsd il would be re-
turned and made applicable TO any other
The currency Is therefore never to be de-
preciated. and as It would be made legal
could not go beyond the necessities of the
people, 1t would never cause panics, but
fore the banks could be affected.
At o'clock Mr.. Springer concluded his
speech amid Democrats applause ana I'M
side OF questions from host OF Southern
Democrats whose views are at variance
Mr.. Cox of Tennessee, who was next on
the list OF speakers, not feeling inclined
to speak. ex-Speaker Galusha Grow. or
his advanced years Mr.. Grow spoke In
clear resounding voice that was clearly
Cav Cav said he did not see any wisdom in
abandoning a system which had been al
most universally acceptable and return TO
an abandoned system of wildcat banking.
He reviewed the existing banking laws and
showed how much safer and better guarded
was the issue Of national banks than the
issue of State banks. The bank notes
gave uniformity of currency which could
not be obtained with the issues of State
banks without resorting 10 a degree OF pa
ternalism which would be Objectionable.
Mr.. Grows speech was warmly applauded
by his Republican colleagues. He was fo,-
lowed by Mr. Lawson, Of Georgia. Mr..
Lawsons speech was plea against imam
cial monopoly. and he asserted that the
monopoly enjoyed by the Bank OF England
has had very depressing effect on En-
glish finances. He wanted home rule in
everything when IL could be obtained, and
for this reason he preferred State banks
TO national banks. At 4:40 p. m. Dir. Law
son concluded his speech amid Democratic
applause. when. on motion of MIR. Cox, the
committee rose and the House adjourned.