The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-03
LESTER ON THE BANK TAX.
A Strong Argument in Favor Of Its
Repeal.

Don't Wish to-The CONSTITUTIONAL
ity of the Taxing Law Denied.
Washington, June 2.-Col. Lester to-day
delivered one of the strongest speeches
vet made in favor of the repeal of the ten
per cent tax on state bank circulation.
Col. Lester last fall introduced the first
bill in either House to repeal the tax, and
his bill was simply to repeal, without any
conditions He has very strong convic-
tions on this subject, and this after
noon he put these convictions
into a cogent, compact argument
against the United States statute
which prohibits the issue of currency by
banks under state charters. This statute,
he said, was enacted for certain purposes
and under conditions which made it a
necessity. 1t was to supply the govern
ment with the means of carrying on the
war-to furnish market for bonds, the
sale of which was at that time neces-
sary to the very existence of the
union This necessity and condition
having long ago passed away, he main
tanned that there is no longer a necessity
for the existence of the prohibitory
statute; especially as it stands in the way
of the necessities of the people. The law
served its purpose and served it WELL
but it was enacted for an emergency, and
the emergency having ceased, the law
ought not to be perpetuated.
CREATES A MONOPOLY.
The law gives to National Banks an ab.
sOlute monopoly of the circulating medium
of the whole country, and the last few
months have furnished an object lesson
of its direful results. which ought deeply
to impress this congress,
twas strange spectacle, Col. Lester
said, to see the government giving to ma
tional banks absolute and sole power to
issue currency, and yet not requiring
them TO issue it only as they please, and
they are not obliged to issue at all if they
don't choose to do so. As matter of
fact, many of them do not issue circulat-
ing notes, because it is not to their inter
est to do so. The law, under
the pretense, and with the avOwed
purpose of supplying currency, places the
power to do so in the hands of the
national banks alone but does not require
them to issue it, and there is no power to
compel them toissue one cent of currency
1t so happens that they have issued, but
TO an extent so limited, that the demand
10 IOu near SuHltl6u. Anu JllS, Sdlu OOl
Lester, they tell us, is the government
exercising its power to furnish currency
The government declines to do what it is
said to be the object of the government
to do.
AN UNCONSTITUTIONAL LAW.
Col. Lester attacked the constitu-
tionality of the law taxing state bank
issues to a degree which amounts to pro-
hioition. He took up the various clauses
Of the constitution referring to money,
and showed that none of them confer
on the government the power to
prohibit state bank money, and
he read utterances of Daniel
Webster in the Senate in 1886 to sustain
him. There is no provision in the consti-
tuition to authorize such law. The gov
ernment has the right to coin money and
fix its value, but it has no right to con
trol everything into which money enters.
Col. Lester made very strong consti-
tutonal argument, and was listened to
with the closest attention.
Messrs Lawson and Black have well il
lusrated Georgia on former days of this
week, on this subject, but it remained for
Col. Lester to give the climax of the best
legal argument that has yet been
made in the House. 1t was log
lcal, fOrcible, clear and Impress
i've. When he turned to Mr.. Springer
y
OF Illinois to make safe banking laws,
don't on that account deprive all the rest
OF the United States of their right to do
So he made a splendid climax to his
argument against the position of that
gentleman.
The representative of the First distric
mas scored another victory, of which his
constituents and the whole state may
well be proud
THE DAY IN THE HOUSE.
BY the Associated Press.
Washington, June 2-In the House to-
day on motion of MIR. Moses, dem, of
Georgia, bill was passed granting pen
sion TO Mary Levins, widow of a soldier
OF the Indian war of 1917, now nearly 100
Years of age, and an inmate of the poor
house in Carroll county, Georgia.
The House, in committee of the whole,
proceeded to the further consideration of
The bill to repeal the state bank tax act,
and then an unusual honor was paid
new member, when Mr.. Reed asked and
obtained unanimous consent for
Mr.. lzlar to conclude his remarks
begun yesterday, and which he was
unable to conclude because the time
allotted to him had expired MIR, Izlar
said in concluding: ~ stand for uncon-
ultlonal repeal first, because the plat
form recommends it, and the people de-
mand it second, because do not find the
power anywhere which would authorize
congress to regulate and name the Sc
curities or the conditions on which state
banks could, or should issue their bills.
lhe federal government has never under
taken the exercise of any power over
state bank issues save that of taxation
ana this, in my Judgment, is a question
able and doubtful power"
ENACTMENT OF THE LAW.
lie then quoted the sections under
Whlch the tax was laid, and continued:
III mad long been settled that the states
Possesses the power to grant charters to
slate banks; that the power was incident
20 sovereignty, and that there was no linn
llatlon in the federal constitution on its
exercise by the states This being so to
Iestroy the state banks, which the states
Hdu the right TO create, and to encourage
natonaI banks was the object and intent
"lIh which this burdensome and unjust
Va YAK IS now imposed. To use the language
vi Mr.. Justice Nelson in the case
vi the Neaze Bank VS.. Fenno,
V Is sufficient to add that the
burden Of the tax while 10 has encouraged
luuHg Dnuire fraffanah hoe f,rouad fatal