Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1894-03-15
STATE BANK TAX.
Southern and Western Members Hope
to See It Repealed.
4 Lively Fight & Alss txpseisd o. ihs Haieh-
Aati-osliss Gil.

IuCUiDkko 0&0 W 0citIuH tnCix Ss4SAS ~ =
fierce fight over the proposition to repeal
the 10 per cent tax on state banks, but il
one may judge from an informal poll OF
the house the chances N any such repeal
are growing beautifully less every day.
The fact Is. say the eastern Democrats,
the proposition for such repeal got into the
Democratic platform by a sort OF accident
or was put in az kink to help make NJ
the general dragnet for votes, but a major
ity Of the people in every section were op
posed to it even then and are still more op
posed to 1t now.
In the preliminary skirmish in the com
mittee on banking and currency the advo-
rates of repeal were badly beaten. OF the
half dozen or 80 bills, amendments and
other propositions providing for repeal, the
committee IL not willing TO report one,
and the friends Of repeal concede that as
Il measure standing alone repeal would
have no chance whatever to get out OF
committee or to be considered in the house.
But at this point the national banks OF
New York come in with little request
which gives the other side what they con
slider beautiful fighting chance.
Varying Views.
II will be remembered that in the recent
striupency the city banks issued many mil
lions in clearing house certificates which
were by them held and credited as money.
Having no held, they are now estopped from
pleading that said certificates are not cur
rency under the taxing clause, and the
comptroller Of the currency has virtually
declared that they can be taxed 10 per cent
under the Law of 1863. Now, an act &c
relieve these banks has already been re-
ported from the banking and currency
committee, and an amendment to relieve
state banks from the same tax would be
perfectly germane to the subject and Will
be pressed. II one may judge from the
expressions of members of all parties and
factions, the result Of pressing such an
amendment would be tho overwhelming
defeat Of the measure to relieve the city
banks without helping the state banks.
The division is roughly outlined as fol
lows: Eastern Democrats and Republicans
alike would rather see the measure as re-
ported defeated than to have the repeal
tackled on to it and passed. clear major
ity of the members from the northwest are
at heart opposed to any revival of the state
bank currency and even OF those who would
favor ii rs an independent measure large
majority would not consent to it in the
shape proposed. They say Estate currency
was killed unconstitutionally, but az 1t Is
dead let it stay dead" And even in the
south, If one may accept the statements OF
those who will talk freely, the state bank
faction is losing strength.
The Populist Position.
As to the Populist and all western and
Is Ill, .%i ,t.f
come nearest to them in general opinions.
their opposition to state banks OF issue IL
very much greater than to national banks.
1t might be more correct to say that they
are so savagely opposed to both that 1t is
idle to measure the varying degrees OF
their opposition. What they want is a ma
tional currency exclusively and no tax on
any kind of bank issues, but their com
plete abolition. In short. say such men as
LATE Pence, John Davis, Mr.. Hudson, Mr..
Newlards and others. the one thoroughly
good thing which the Republican party
has done Tor the finances was the aboli-
tion of all local currency. All that is need
ed, they add, is to go farther in the SAINT
direction and have 10 currency except that
cnesting upon tho faith and credit of the
United States.
1t is tolerably safe to say that with nll
these elements of opposition tho chances
are many to One that the repeal OF the
state bank tax will he tackled or to the
bill to relieve the city national banks, and
then that the whole thing will be-well
one might say annihilated. Nevertheless,
as aforesaid. Il score Of members are prepar'
ing 10 make desperate fight for the re-
peal.
. The Cooper Bill.
!. Another measure on which very lively
fight is promised is the Hatch antioption
bill, and there is general consensus OF
opinion that the division will be on almost
exactly the same lines as it was on the
Bland seignioriage bill. Substantially the
same may De said OF the Cooper bill au-
thorizing states, territories and local pow
ers generally to tax everything which pass
es M currency, regardless OF whether 1t is
bank or government paper, gold or silver.
currency or coin certificates.
On this point there has already been
quite sharp discussion in the banking
and currency committee, and from the tes-
timony given before that committee it
would appear that, taking in all the new
states and territories and the boom towns,
the average taxation in the west, summing
up state, county and city, Is 81. 50 on the
hundred. II goes without saying that tax
of 3iS per cent would sink any national or
state bond now outstanding. But would
1t sink the grcenbackss The opponents of
the bill say certainly Its advocates say
certainly not. fer the tax does not prevent
the circulation of gold and silver or silver
certificates, which last have hitherto been
considered liable to taxation. though some
OF the best lawyers in congress think they
would come under the same general ex-
emption rs the nontaxahlc currency.
In short, say the advocates of the Cooper
bill, a uniform tax upon all forms OF cur
rency is the best possible way to insure
that none shall be boarded. 1t is easy to
see why the sections in which there is com
paratively little idle money to hoard nj
any season Of the year or even in the dull
est times should incline to favor the tax,
while il would he quite otherwise in the
70 called money sections, and hence why
the division would be along nearly the
same lines as that on the silver bill.
The Poprlists take the same joculal
9iew of this as Of other financial issues
for they are a humorous set--but rs many
of them are regular Henry George single
takers they will vote against any taxation
nf money. Their argument is that all tax
ation Of personal property, except certain
kinds, is either a great wrong or a great
fraud. Land and incomes are what they