The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-05
STATE BANK TAX QUESTION
Ef. Rsyner Speaks in Opposition to The
Repeal Of the Present Law.
SPEECHES IN Favor OF THE REPEAL.
Test OF the Value of the State Bank System,
Condition of the Banks when the Gov
ernment Inn posed the Tax.

WASHINGTON. u. c.. June AFTER
some unimportant morning business Mr..
Springer moved that the House proceed
in committee OF the whole to the con-
sideration Of the bill 10 repeal The lG
per cent. State bank tax. Mr.. Wilson
Rep9 asked how long the debate vas to
go on. II was highly important that the
Indian appropriation bill should be con-
sidered soon. The first Of July was rap
idly approaching, and the bill would
doubtless be discussed at length I'm the
House before II was sent to the Senate.
and, as a member of the committee, ne
would be glad TO see the bill under way
ISDIAS APPROPRIATION BILL.
Mr.. Springer made no answer, but Mr.
Holman gave notice that tomorrow (lues-
day. he would ask the House 10 take up
the Indian appropriation oill. Inc ma ma
ton by MIR. Springer was agreed 10, aho
MIR. Dalzell QRep, Pa, made an arsus
ment I'm favor of The cOnstitutonanty VI
the bill taxing notes OF state banks ~
per cent. His broad contention, ne saiu,
was that the right and power 10 issue
circulating notes exclusively resided Ill
the National Government.
Mr. Balzell was followed by MT. Ray
ner Dem. Md. who spoke in the same
une-that OF opposition 10 the repeal ol
the law. Mr.. Rayner cOmbatted objections
that were urged against tne hauohdss
banks. and set forth the ADVANTAGES OF
the system. Defects were admitted anu
noted by him. To remedy these ne woulu
p) permit national banks to issue notes
10 the full amount Of bonds deposlte1,
CD repeal the tax on their circulation 70,
modify the stringent provisions against
stockholders as to their personal resPOn-
sibility for debts; (D permit the banks 10
increase their circulation whenever the e
demand exists, upon good security QUIZ ne
than government bonds; 90 Derpetuate ths
system based upon "A deposit Of State anu
municipal securities
Mr.. RAYNER on THE PLATFORM.
In conclusion. Mr.. Rayner referred to
the plank in the Democratic platform
pledging the repeal OF the tax upon state
bank circulation. It's explicit character,
Mr.. Rayner admitted. how IT got uete
ne did not know, but as Tar as he was
concerned the platform might as well nave
pledged repeal OF the ten command
with others. but ". me the time has
not yet arrived when ! have surrendered
my conscience and my convictions 70
the keeping Of political convention.
deny that II lies within the province or
the jurisdiction Of the convention 10 tram
mel me in the discharge of my duties by
asy such declaration as this. This Dill
T. repeal the tax on hank circulation
failed TO pass al the last Congress in a
Democratic House, and now | am told be-
cause some one slipped these words into
the platform that | am to be menacled
NKe a slave and robbed Of the greatest
boon that free man IN these halls can
claim. ard that Is. the right TO vote upon
questions OF public 0oIicy In accordance
with the dictates Of duty; that 1t lies not
within the power Of any man or set or
men 10 shackle or trample upon"
DAMAGING yIEws.
The diyerging views of members Of the
Dem0cratc party upon financial matters,
said Mr. Rayner. which he hoped soon
10 see taken ont Of politics. would neces-
state The inquiry when a man declared
himself 10 be a DEMOCRAT. What kind
OF Democrat are Your OaughterD
Ihe neft speaker was Mr. Cobb (Ala.).
memoer of the committee, who spoke
u. favor o. the repeal of the law.
Mr.. cobb said that the proper way
10 test the value OF the state banking
system was TO consider the condition
OF the banks at the time the General
government saw III 10 impose the prohibi-
Tory tax. IL was not necessary 10 20
back ten years before the food What
were the facts? When the banks were
forced 10 90 into liquidation In 1865 every
bank IN the North redeemed its obliga-
lions without discount and without loss
70 a single bin holder The same was
true of banks I'm the southern States ex
cept in the cases Of those whose assets
the war.
LACK OF r1ExIBnITY.
The serious difficulty with the national
bank currency. said Mr.. Cobb. was its
Iack OF fleNlbility A currency possessing
that quality was the urgent need Of the
business interests Of the country In his
opinion il would never be secured until
mere was established a banking system
with circulation under the control Of
those whose right II was 10 issue it,
Such n system as this, he said. would
provide al the shortest notice the cur
rency needed 10 meet any exigencies in
some particular section Of the country.
avoiding the period Of stringencies in
separabie from the present system.
Mr. oates, Of Alabama, his party's can
dldate for Governor in that State. fol-
lowed his colleague. Discussing the ques-
uon OF consututionality Of the tax law,
Mr.. Oates referred to one of the decisions
OF the Supreme Court OF the United States
announced by Chief Justice Marshall in
which Il was held that the taxing power
OF the Government might be exerted TO
the point Of destruction II that be true
doctrine. asked Mr.. oates, is ii not true
that the Federal Government Is abso-
lute that II Is not government Of emu
merated and unlimited powers. He con-
tended that the Government could not
do indirectly, by the exercise of the tax
ing power that which IL could not do
directly.
At the conclusion Of Mr. Oates remarks
the committee rose. ON motion of Mr..
savers the Senate joint resolution was
passed apprOpriating $4,000 for the pay
ment Of expenditures caused by the Sugar
Trust Investigation. ordered by the Senate
and now in progress.
At $50 =. NJ. the House adjourned until
tomorrow at noon.