The morning news., 1894-06-17
A Broad Banking svstern.

n DaAAluE SSblSih-
A few days ago the Nashville American
suggested that a state bank of issue be
established in that state, and a small
amount in noles issued for the purpose OF
testing in the United States supreme
court the constitutionality of the 10 per
cent. tax on state bank issues. The point
is made that the tax was a war meas
ure, ana that it is unconstitutional. This
suggestion has been commented upon
favorably by several southern papers. II
is hardly probable that it will be acted
upon, for the reason that it would take a
long time to get a decision, unless the
supreme court could be induced to give
the case preference, and for the stih
! stronger reason that very few capitalists
/ favor the unconditional repeal of the tax.
! 1 he vote on the question of repeating
/ the tax Internationally, that was taken
| in the House recently, seems TO settle,
| for the present at least, the question of
/ the unconditional repeal of the tax. The
truth is. the country does not want to 60
( back TO the system Of state bank cur
rency, and the Democratic party is not
{ pledged in favor Of that system. In its
national platform IL recommends that
the prohibitOry 10 per cent. tax on state
/ bank issues be repealed" 1t makes no
demand nor declaration in respect to the
matter.
1t is doubtful If there will ever again.
in this country, be banks of issue under
state laws alone The people prefer a
uniform currency-a national currency
and no conditions are likely to arise that
will chance this preference. But there
| will be very great change in the present
banking system. And it is pretty certain
that the change will be made by this con-
gress. 1t may not be made at this session,
but before the end of this session a bill
will probably be reported that will pro-
vide for banking system that will be
broad and liberal enough to command the
approval of all classes of people.
The committee that is charged with the
duty of framing a currency bill is com
posed of fiveiof the ablest and most prac~
tical financiers of the House. II is in
structed to make report by June 27, and
the understanding is that the report
will be ready by that time. No one out
side of the committee knows what the
report will be, but Judging from the
general tenor of the speeches during the
debate on the question of repeating the 10
per cent. tax, it will be in favor of a
national currency.
Representative Walker, Of Massachu-
setts. a member of the committee on
banking and currency, speaking day or
two ago of the probable character of the
report, said: "It will be in the direction
of national currency and national bank
ing, and away from state banking and
on gold and silver instead Of bonds. The
general desire is to create a system of ma
tional banks which shall proceed along
lines parallel to the present national
banks. The latter will be merged gradu-
ally into and absorbed by the new sys-
tenn. AS the charters of the old banks
expire, they will be given charters under
the new banking system. Thus the old
and new systems can proceed in parallel
lines without tdisarrangement to either sys-
TEN. The bill undoubtedly will provide
for doing away with the various forms of
currency now issued and the substitution
therefor of uniform paper money issued
by the government through the banks.
The purpose will be to make national
banks the sole source of issuing currency,
under government supervision and direc-
ton"
Mr.. Walker may not be altogether cor
rect in his prediction, but it is pretty safe
to assume that whatever may be the ma
ture of the banking system that is
proposed it will provide for a ma
tional currency AS great as the
demand for state banks of issue
now is in some parts of the coun-
try, the people Of those sections would
soon become dissatisfied with state bank
currency if the way were opened for cur
rency of that kind. The people do not
object to national bank currency The
only complaint of those who are COM
planning is that there is not enough cur
rency.