The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-08
The Tax on State Bank Issues.

The large ma sority by which the amend
ment TO the Brawley bill, providing fo
the unconditional repeal OF the 10 PEE
cent tax on state bank issues, was de
feated in the House Wednesday, makes
it certain that the tax viii not be uncon
ditionauy repealed by this congress. L
is doubtful if it will be Internationally
repealed by any subsequent congress
The vote shows that the republicans
populists and seventy-five democrat
voted against repeal
The truth of the matter is, that while
there is a very strong demand in many
localities in the west and south for an in
crease IL the volume of the
currency, there is a very general
feeling of opposition to state bank
issues of notes. Those who remember
| when state banks issued notes have not
/ forgotten the many annoyances and losses
4 connected with notes of that kind. PEG
/ pie were afraid to accept paper money
/ because vast quantities of il were either
/ counterfeit or subject to a discount, or
1 worthless because the banks which issued
| it had become insolyent. They had no
| way of determining its character except
| by publications called Bank Note De
tscJors, and they were not always relia-
bic. A new "detector" had to be pur-
chased every month in order TO keep even
| partly informed in respect TO the charac-
| ter Of the currency.
The people are satisfied with the ma
tional bank currency. 1t is the best the
! country ever had. It is in fact the best
/ in the world 1t is seldom counterfeited
ana the bills are always good, whatever
may be the condition of the bank that
| issued them. They are accepted every
where, at home and abroad, without
! question Under the state bank system a
citizen of one state going to another state
was put TO the trouble Of having mis- pa
/ per currency changed into the money OF
the state he proposed to visit, and he had
| 10 submit to a discount. The tax upon
those who did much travelling was heavy.
| There is no such trouble with the national
bank currency.
But there ought to be legislation per
hitting the establishment of state banks
under certain restrictions. Several bills
have been introduced into the House hay
ing that object in view. From them it
would be an easy matter to draft bill
that would answer admirably the wants
Of the people. What is desired, particu-
larly, is greater elasticity in the cur
rency, and in certain localities more cur
rency. 1t is also desirable that the banks
should have the right to loan
money on real estate The main COM
plant of the farmers is that they cannot
borrow from the national banks on farm
mortgages The complaint is a Just one.
What is needed is a banking law that
would maintain the uniformity of the
currency and would permit the use of
other securities than government bonds
as basis for currency. The bonds Of
Georgia and of the cities of Georgia
would be as safe security for issues of
bank notes as government bonds A law
authorizing notes to be issued on such Sc
curity would permit the establishment of
banks in this state whenever they are
needed. The notes should be issued by
the government on the deposit of the re
quired securities, and the government
should be responsible for the notes, and
have the power to call for additional Sc
CuElJlcS II Jue market value OF Ll0Se on
deposit should fall below their face value.
a bill having some such provisions as
those suggested would likely meet the APP
proval of congress and satisfy the people
An effort to pass such a bill at once
should be made. 1t is evident that state
banks of issue, such as each state may
provide, are out of the question at pres
ent. Then why not nave legislation on
the line suggested by Mr.. Springer in his
speech in the House a few days ago. That
would be a substantial compliance with
the national democratic platform, and
would be more popular than the bill that
was defeated on Wednesday.
When the Georgia legislature was dis
cussing the bank bill it passed last fall,
the MORNING News suggested it was
wasting time-that it would be much the
wiser plan to wait and see what congress
would do with the state bank tax. The
wise men of that body, however, insisted
of showing the people what they could do
toward framing a state banking law,
though it was apparent to many that
there was not much probability there
| would ever be need for such a law.