The morning call., 1894-05-27
TAX ON STATE BANKS.
Ilr. Springer Speaks for Its
Repeal.
Grow Has Lost None of His Cum
ming When 1t Comes to Bother
ing Democrats.

WASHINGTON, May 2G.-The Brawley
bill 10 remit the 10 per cent tax on clear
iGg-hOuse certificates and other notes
issued by private and State banking asso-
Citations between August 1. 1898. and Octo-
Der Is, 1893, being the period of financial
depression. had the right of way in the
House today. Springer of Illinois. chair
man of the Committee on Banking and
Currency. made speech against the total
repeal of the bank laws, while he favored
the remission of the tax on notes issued
during the financial stringency.
Immediately after the reading of the
journal GeaIy's bill granting the right of
way for a road through Lime Point Mill
taTy Reservation, i'll California, was taken
up and passed, and then the State bank
tax bill was reached, Springer having the
floor.
Springer spoke fully on the evil result
ing from the issue of State bank notes TO
the people at large and the trade and COM
MERGE of the country. He gave full his
tory of the failures and losses arising
from the wildcat banking circulation
which preceded the green backs, ana then
eulogized his own bill for remedying all
these evils, now before the Committee
OR Banking and Currency. He described
the bill by sections, the gist of the measure
being that all national notes issued shall
be protected by deposits of gold to the ex-
tent Of 20 per cent. and United States,
State or county bonds for the other so per
cent. banks to be made the means of dis
tributiOn, even if il can be for the estab-
lshment of bank in every village. The
notes arc to be issued in three classes:
Series "a" corresponds with the amount
Of gold deposited, and pays 2-1O of one per
cent per annum to tie Government to
cover expenses of the issuing commission;
series "B," to equal 60 per cent of all the
currency Issued TO the bank. which must
pay per cent per annum, and series &C."
issues to the amount of the remaining 20
per cent, which must pay to the Govern
ment per cent per annum.
The object of the series is to secure the
necessary elasticity. Glasses "a" and ''B"
would furnish all the currency needed for
ordinary business OF the people. Glass
&c" would cot be taken out unless the
emergency required and was worth the
interest charged. When the stringencv
subsidized it would be returned ana made
applicable to any other section OF the
country wherever required. The cur
rency could therefore never be depre-
cated, and as it would be made legal ten
der and receivable for all dues and could
not go beyond the necessities Of the PEG
pie, ii would never cause panics. but
would release all financial stringency be-
fore the banks could be affected.
At 2 O'clock Springer concluded his
speech, and Immediately he became the
target of the broadside of questions from
host of Southern Democrats whose views
are at variance with those lie expressed.
Cox of Tennessee. who was next on the
list of speakers. not feeling inclined to
speak, ex-SDeaker Galusha A. Grow of
Pennsylvania was recognized. In spite of
his advanced years Grow spoke in clear.
resOunding voice that was clearly audible
in every part of the house. He said he
did not see any wisdom in abandoning a
system which had been almost universally
acceptable TO return to an abandoned sys-
tenn of wildcat banking He reviewed the
existing laws, and showed how much safer
and better guarded was the issue of ma
tional banks than the issue of State banks.
Crows speech was warmly applaUded by
his Republican colleagues. He was fol-
lowed by Lawson of Georgia. who spoke
for repeal. at lao the House adjourned.