New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-27
STATE BANK TAX REPEAL.
A LONG AND STUBBORN FIGHT BEGUN
IN THE HOUSE.
EVILS OF RETURN TO THE WILDCAT AND
"RED-DoG" SYSTEM OF CURRENCY GRAPH
ICALLY DEPICTED BY MEssRs.
SPRINGER AND GROW
(BY TELEGRAPH TO THE TRIBUNE I

(BY TELEGRAPH TO THE TRIBUSE1
Warrington, Nav 26.-In Committee OF the
Whole to-day the House Of Representatives be-
gan the consideration Of the proposition to re-
peal the tax on State banknote circulation over
which the fight promises to be a long and stub
born one. II the friends OF repeal were united
there would be no doubt as to the outcome. but
that IA not the fact. Probably majority of the
Democrats favor the unconditional repeal OF the
tax, but at this time they lack many votes OF
majority. and the prospect seems TO be that the
debate will rather subtract from than add to
their strength. In other words. the proposition
to return to the old system or systems under
which the country groaned before the war. and
from which 1t happily escaped through the pas
sage of the National Banking act is not likely
to thrive in the light Of intelligent discussion
On the other hand. none of the various plans
proposed to require that the bonds or other secu-
rifles deposited to the circulating notes
OF State banks shall be such only as the Con-
troller Of the Currency at Washington may ap-
prove. or to provide for any other form Of Ma
tiona supervision. will be likely to enlist the sup
port or obtain the consent Of many Of the South
ern Democrats. who among the most active
and earnest advocates Of repeal. What they
demand and mean to have II anything is bare
unconditional repeal. Many of them contend as
did Mr.. Lawson. of Georgia, in his speech to-day,
that the existing tax is unconstitutional, despite
the fact that the statute has stood for thirty
years. OF course Mr.. Lawson and men who
share his views anxious that the National
banking system shall be swept out Of existence
(as it would be If the tax on State banks should
be repealed and that on National banks allowed
to remain) and the country again placed at the
skilful counterfeiter
What that would mean. the exhaustive speech
delivered by Chairman Springer. of the Com
mittee on Banking and Currency to-day clearly
disclosed. No man in Congress has made so
thorough an investigation and so careful study
Of the history Of the matter as he. and the array
Of facts which he set forth to-day is simply i'm
pregnable and unanswerable The short speech
of ex-Speaker Grow on the same side. which
made from the standpoint OF personal experience
under the old system went to the root Of the
matter and evidently produced deep impression
upon the House.
Mr.. Springer discussed at great length the
history Of State ba nks OF issue He said that II
there were no other reason for opposing a circu-
lating medium issued by State banks. the argu-
ment OF inconvenience ought to be sufficient
There were now forty-four States in the Union
and four more undoubtedly will be admitted In
the near future Each OF these States would
have different laws regulating the organization
Of banks and providing security for the circu-
lattng notes. 1t was frequently said by the
friends Of State bank circulation that the notes
Of State banks would stay at home. History
did not Justify this assertion II wa the object
OF bank officials to put their notes il circulation
at points remote possible from the bank,
so that the probabilities OF their presentation for
sibly make them. During the reign Of State
bank issues more than 1000 different kinds OF
notes were In circulation, and 1t next 10
impossible for merchants and bank officials to
detect counterfeits and 10 ascertain the value Of
notes. and certainty 70 their authenticity
would be impossible under State systems Of bank
issues He then gave examples from the history
of the States Of lamentable failure OF the State
bank issues to meet the wants Of trade or to
protect the public from heavy losses. In con-
clusion Mr.. Springer said
THE people demand a greater volume m the
medium. They are entitled 10 every
dollar OF currency that the business OF the
country can use under any and all circumstances.
Whatever is needed Congress should provide.
1t should be a sound and uniform currency, such
as Jackson and Gallatn favored; 1t should De
free from the objections that John c. Calhoun
urged in 1894 against the State bank issues which
produced that state OF convulsion ana reVuIee
SION which he so graphically pointed out II
we should return to the system of State bank
circulation which prevailed IN Jenerson's time.
the private fortunes Of the people will again be
lenders and Will be Frustrated by the floods OF
nominal money with which their avarice VIII
deluge US Transfer the right OF issuing cir
culatlng paper to Congress exclusively. IN per
petuum This is the appeal Of Thomas JeHerson'
the father Of the Democratic party. This Is the
appeal Of the American people to-day. Let their
heed IT, and the future hnahcial
prosperity Of the country is assured.
Mr.. Grow (Rep.. PENN said that II we should
go back to the old system the best OF us VINO
handle money could not tell good bank note
from a counterfeit one State bank could not
he compelled to take the notes or another state
NIX The first crisis that came In the STATE
bank system would overwhelm Its profits why
90 back? Why attempt the old system? II was
The policy Of the Democratic party to undo all
that had been done in the last third or a cen,
fury Mr. Crows brief remarks were followed
by applause. .,
Mr. Lawson Dem. Ga) spoke in favor OF the
repeal 49,,
AT the conclusion Of Mr.. Lawsons speech the
rose and the House adjourned.
LOOKING UP THE PRECEDENTS.
THE SENATE BRIBERY COMMITTEE STUDYING ITS
POWER TO COMPEL WITNESSES TO TESTIFY