The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-04-08
The State Bank Tax.

The State Bank Tax.
The caucus of the democrats of the
House that is called for Tuesday evening
next, may reach an understanding rela-
tive to the repeal of the 10 per cent. tax
on state bank issues. There is a very
hopeful feeling among southern demo-
cratic leaders that it will. It is stated
that the President would sign bill repeal
ing the tax, provided it was 50 drawn as to
provide for a uniform currency and gave
ample protection to holders Of state bank
notes.
There are radical differences of opinion
among democratic members of congress
as TO the kind of a bill that should be
passed. Many want bill repeating the
tax without any restrictions, so that each
state may enact such banking law as it
pleases. It is doubtful if a bill of that
kind could be passed. In all parts
of the country there is a set
tied determination not to go back
70 the state banking system that existed
prior to the enactment of the national
banking law Each state then had a
banking law. In some Of the states the
law was wise and the banks were sound
and their notes passed at par not only at
home, but elsewhere. In other states
the law was very defective and encour-
aged wildcat banking. The consequence
was that there was great uncertainty in
respect to the currency. Notes of broken
banks, counterfeit notes and notes that
were subject to a heavy discount were all
the time in circulation, and we're passed
upon the unwary. The ignorant were,
as rule, the ones that suffered, though
a large portion of the population were
subjected to more or less loss because of
the discount on notes when offered
outside of the state in which
they were issued. That condition of
affairs would not be tolerated now. And
it ought not to be. There is no good rea-
son why it should be Those who favor it
must be Influenced by selfish motives.
But it is possible TO have state banks
of issue without the objectionable features
possessed by state banks prior to the
establishment of national banks 1t would
not be a difficult matter to frame a law
repeating the tax on state banks that
would permit Of the establishment of
table and at the same time rest upon as
sound a basis as that of the national
banks
The law should make wildcat banking
impossible. 1t should afford ample pro
lection for the holders of state bank
notes and require the notes to be uniform.
In other words, the notes Of state banks
should be as acceptable to the public as
national bank notes. The notes of the
banks of Georgia should pass as freely in
South Carolina, or New York, or Colorado
as national bank notes
There would be no difficulty in finding
a good foundation for state bank issues.
The bonds of Georgia are as good as those
of the government, and the bonds of the
cities of Georgia would bea safe security
for bank note issues. What is true of
Georgia bonds and the bonds of her cities,
is true of the bonds of many of the other
states and their cities.
State banks would furnish an
abundance of currency, and the most
Of this currency would stay at
home. Those who are calling for
the free coinage of silver on
the ground that there is not enough cur
rency, and that it does not possess suff-
cient elasticity, would have no further
reason for wanting debased silver dollars
coined. Nobody wants silver money,
because it is silver, except silver mine
owners. Indeed, as a rule, silver is re-
fused when other kinds Of money can be
obtained.
The repeal of the 10 per cent. state
bank tax would have the effect of
stopping the agitation for free silver
coinage because it would deprive it of
the greater part of its support. If the
democratic congressman can get together
in Tuesday nights caucus, they may de-
eide upon financial legislation that will
be of real benefit TO the party and the
country; and if they are animated by
the right sort of spirit they will get to-
gether