The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-02-14
An important Bill.
Mr.. R Dewitt Warner, of New Y ork

Mr. r Dewitt Warner, Of New 7 ork
introduced in the House of Representa-
tives Monday bill for the removal
OF the tax on the circulation Of State
banks on certain conditions. The bill
is an effort on Mr.. Warmers part to
solve the problem of how to provide
safe and elastic currency for the people
of this country. problem which has
| long demanded the attention Of Con-
gress, which mas so far baffled it's wis
dom, and which becomes the more
pressing as the United States bonds,
| on which the national bank circulation
is based, nature. The provision con-
| tanned in Mr.. Warmers bill for the re-
peal of the tax on State bank circula-
ton is intended to provide the desired
elasticity Of circulation, and the con-
ditlons are intended to secure the neces-
sary sifety. Those conditions. in a
general way, make the State banks SUBJ
ject to the same governmental control
as the national banks. That is to say,
there is certain limitation of the cur
rency in proportion to the capital of
the bank, the banks are required
to the comptroller of the cur
rency at stated intervals, and
their books and cash are liable
to examination by Federal au
thcrity. The News and Courier
in commenting on the bill says ''such
Federal SUPERVISION of State institu-
tioa is contrary to the spirit of the Con-
stitution Of the United States but so is
the Discriminating tax on the circula-
ton of State bank, which is simply an
exercise by indirection of the uncon-
stitutional power of foroidding the
State banks to issue notes. It is,
therefore, scarcely worth while to
question the power Of Congress to
adopt this system OF control if it sees
| Git so to do. The real question before
Congress in regard to the State banks
IS whether it is wiser to adopt this sys-
tenn of Federal control, thus partially
removing the injustice done them by
the discriminating tax on their c!rcu-
i lat.on, OF simply to repeal the tax and
| leave the State banks to the exercise Of
their constitutional rights. It is not a
question of power, but OF exped'e1cy.
| 1t must not be forgotten that Fedora
control, while acting as 4 restraint on
the State banks, "ould also. naturally
strengthen their credit. II the Repub-
licans were in power they would doubt.
less devise some means of enlarglng
the number and circulation OF the nd.
tionaI banks. The Democrats should
be careful to leave no excuse for such
d course in case hey have to MAKE way
for Republican majority. As n the
matter of the tariff it is not theory
hui condition which confrOnts them
A reconstruction, or at least revision
of the banking system is necessary,
and they should undertake the task
at once and adopt system that, while
preserving State Independence as far
as possible, should have all the stability
and credit to be derived from Federal
authorization and supervision. We are
not prepared to say that MIR. War
ner's plan is the best that can be de-
vised, nor that it has no radical defects,
not having had time to study it critic
ally, but it appears to US to at least aim
at the true objecs needrd to be accom-.
plished by financial legislation in Con-
gress at the pressR tlme.