St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1894-02-17
THE STATE BANK TAX.

THE STATE BANK TAX.
The bill repeating the tax on note
issues OF State banks received a
black eye in committee at the end
Of last week but, although it failed
to receive . favorable report by a
vote Of nine to eight, 1t
does not therefore follow that the
bill has been shelved for the ses-
sion. For Judge Cox, Of Tennes-
see, its sponsor, says that he will
carry the fight into the House over
the committees head, by means OF
the authority which has already
been conferred upon him to report
at any time the Brawley bill re-
pealing the. tax on notes and certifi-
Gates issued during the money panic
of last summer.
The committee on banking and
currency is large and important
committee, consisting of eleven
Democrats and six Republicans.
with Representative Springer at the
head. A majority Of the Demo-
Gratis on the committee are free
silver men and are advocates Of the
unconditional repeal Of the State
bank tax; and in fact all Of the
eight members Of the committe who
voted to report the bill we're Demo
Gratis and unconditional repealers,
while the remaining three Demo-
Gratis (Springer, Sperry and Warner)
who voted with the six Republicans
and constituted the adverse major
ity, favor repeal only with certain
limitations.
1t is . renewal in fact Of the same
old free silver fight, on which the
Democrats were badly disintegrated
in the last Congress, and which
threatens to craete discussions in
the ranks OF the party again this
Congress. For although the I'M
conditional repealers OF the State
bank tax do not cover precisely
the same ground as the free silver
ties. yet they are in the main the
same men and they champion the
same sentiments respecting the
white metal.
The unconditional repeal Of the
State bank tax, as the Times
Democrat has frequently pointed
out, would be an unmitigated
calamity to the country. For it
would inevitably be followed by a
multitudinous issue of State bank
| notes-as multitudinous probably
as the stars on the flag-which. even
il they were not bogus, would be a
perpetual worry and Inconvenience
to all who had to handle them. For
who in Louisiana, for example,
would be disposed to take the trouble
to investigate the genuineness OF q
dollar bill of the State Of Washing
ton proffered him in the ordinary
course Of business?
Most things, whose distinctive
characteristic is their cheapness,
are in the end Improbable and I'M
satisfactory; and the cheap cur
rency that would be the sure result
or concomi:ant Of the repeal Of the
State bank tax would certainly
not be an exception to that rule.
But in the event that there were to
be issues Of notes from State banks,
there should at least he one limita-
ton to the issue, and that limita-
ton is, that there should be coin
in the State treasury to represent
and to redeem every note OF the
Observation-Disclosures.
Our sentiments are in full accord
with the above. United States Treas
ury notes pass current in all parts
Of the country, and the people have
unlimited confidence in them. But If
State banks are established, we
firmly believe it will open the way
| to innumerable frauos and imposi-
ton. For instance, q man owing
another two dollars may tender =
note of the bank of Maine, and
another of the bank Of Michigan, OF
one dollar each, in payment. The
creditor must be familiar with all
State bank issues, or take his
chances of their being genuine or
worth face value. It is better to let
well enough alone. Doubtless the
issues Of Louisiana State banks
would be worth par value, and the
people would soon become familiar
with them. But if the creditor
must accept the notes OF any State
bank, no matter where it comes
from, he will doubtless receive, in
the course of time, many worthless
limitations, of less value than the
paper they ARE printed on.
Uncle Sans note is as good as
his bond, and in our opinion it is
the best and most acceptable
form of paper currency that was
ever devised. We look with dis
trust on the proposed establishment
Of State banks, with their 'wild
cat" accessories, and hope the
present system will be maintained,
SO far as the issue of paper money