The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-04-30
The STATE BANK ISSUES.
Swanson, Of Virginia,
Gives His Views.

son of Virginia, in behalf of state bank
i.sr,a Is well known. He has introduced
a hill Tor the repeal of the 10 per cent.
tax which is exciting great interest. At
the request of the MORNING News cor
rasnondent he made the following state
ment;
..The proposition for the repeal Of the
n ner cent. tax upon the issue of state
hanks will be before the House very soon.
THE sentiment in favor of repeal is gain
inc, strength every day. The administra-
tiop favors repeal, and will aid the move
mept. The President, think, will sign
either a bill of absolute repeal, or one
with reasonable restrictions.
UNION NEEDED.
"There is sufficient strength in the
House to carry repeal through, if it can
he united on some measure. Unless this
is done the chances are that any measure
of repeal will be defeated. 1t was with
the view of getting the party united on
some measure that l procured the call for
a caucus. The democrats are divided into
two factions-One advocating absolute re-
neal. and the other repeal with federal
suneryision and restrictions to make safe
he issue. have introduced a bill which
Hope can be accepted as compromise.
MIR. swANsoN's BILL.
"Nv bill provides for the repeal of the
,8yupon she issue of all state banks, where
The law creating the bank or the charter
of incorporation contains the following
requirements:
4. No bank shall issue currency in ex-
cess of - per cent upon its paid-up and
lrrnraired capital.
-. The holders of the notes shall have
first lien upon the assets of the bank.
~. The stockholders shall be personally
liable to the holders of the notes to an
amount equal to the par value of the
stock held by them.
H. The notes shall be redeemable, upon
presentation and demand at the counter of
the bank, in money made legal tender
BY the laws of the United States.
-. The banks shall be examined five
times year by state officer, and the
result OF each examination shall be pub
lished
The state can provide any additional
requirements it may see proper.
NO FEDERAL SUPERVISION.
"There will be, under my bill, no fed
eral supervision and control. If the bank
is organized under law with these require
ments, it is not subject to the tax All
the federal authorities will have to do is
to examine and ascertain if these require
ments are imposed by law, and If i'm
posed, the bank and its issue are abso-
lutely free from federal control. The en-
forcement of all the provisions is left
to the states. think the states can be
trusted to execute faithfully, more than
the federal government, a matter in
oh iy,1f
terested. The history of the state banks
shows that where the law governing the
issue was good, that the issue was good
and safe Where the law was defective.
the issue was bad. There can be no
wildcat currency under the require
ments Of my bill. II would give a safe
and conservative and elastic expansion of
the currency.
EXPANSION.
The capital invested in state banks,
with the surplus fund which could be
transferred into capital according to the
report OF the controller of the currency.
amounts TO 1913, 1913, 076. Under my bill
there could be an expansion of the cur
rency If needed by the demands of bust
ness, TO the extent of about $500, 600, 900. or
ABOUT s. per capita. When not needed by
trade, 1t would not be issued by the
=
currency, increasing and decreasing as
the demands of business required. 1t
"ouid bring great and immediate relief
10 the south
COMPLAINT OF THE SOUTH.
The complaints of the south that the
present system IS insufficient to furnish it
WIN WIN currency and causes it to accumu-
IaIe IN few states far in excess of their
wealth, Is very just and true. The best
way 10 make a comparison of the amounts
VI currency IN different states, is the ag-
sIes4Ve OF capital, surplus, undivided
Pfo1ts and individual deposits in their
IauAs' This gives the amount Of real
Ioanaole funds in state.
INTERESTING STATISTICS.
me average per capita of bankable or
5sUJanaOle funds in the United States is
SS1yo>' Inc average wealth in the United
1 ,5'S per capita is 81 ,039. The average
1Mealth per capita in New York is 81. 48O.
us us average per capita of bankable and
%tyaIaOie funds is S29l.55. Thus New
t ioIA mas only about 80 per cent. more
VIZ, man Jus average wealth per capita, and |
en- So, HlHloS6 SUI per cent. more than its |
90upPiy OF currency. Alabama has s412 |
yer capita of wealth. and 81 o. |
VI oahkable or loanable funds. Thus |
We see II has not quite half of its average
SUI, ,'Vu' ana yet not quite one-tenth of its |
81 IIIPIy OF currency. Massachusetts has |
~. OF wealth per capita, and 1926 50 per
SS1Pl'a Oh Ioanable funds. Thus this state |
ao ABOUT % per cent. more than it's |
,oatvu per capita, and over 800 per cent. /
c,,rra Ihah It's average supply of |
TIr Ieuoy. North Carolina has 1851 |
bor, capita of wealth and $3.50 of |
IT, lHaoIe funds. 1t has one-third of |
its average wealth and not one tenth of |
bs. average s., supply of funds. Kentucky |
mas mas 500! per capita of wealth and $41 Al !
A. capita OF bankable funds, which is !
wiz lue average of southern states. vet
is moi , 9l'oWs mat her supply of currency |
ton ~ as great as 1T should be in propor- |
Der ner wealth. Georgia has S464 |
nsr Caplta of wealth. and 1888
Gror,G,iaa PlIa OF bankable funds. Thus
wooit5aI1 mas nearly half the average
of '1rn, "uu only about one-tifth It's supply
of ,y"ditIi 10y. Virginia has S521 per capita !
fgn6s '''n I'D ana 626l3 per capita of such
ayera,., mus Virginia has about its
fo,rT Oh wealth, and only about one
''S supply of loanable currency.
.,r, NOT FAIRLY DISTRIBUTED.
tb,t nus the statistics exhibit clearly
undo,C' ,IHIIehcy is not distributed fairly
in- n, , ou5 present system, either accord. |
lates "edlJh or population. 1t accumu-
tbair IL, rev states far in excess of what
for topualion and wealth would cali
STAT, NtoChlng will do more to enable
sham w w acquire their proper and lust
- VI currency than the creation of
y7r -
OBSERVATION-DISCLOSURES NEUTRALITY-SUSPICIOUS.