Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-05-26
AGAINST STATE BANKS
Mr.. Springer Denies Their Right to Is
sue Paper Currency.
Vigorous Speech on the Subject of
the Financial Necessities of
the Country.

Congressman Springer addressed the
House Of Representatives this afternoon on
the bill to repeal the tax Of 10 per cent upoh
state bank notes. Regarding the question
of currency as only second in Importance
to the tariff at this time. he regretted that
there was no fixed and sound policy In ref
erence to 1t which would render periods OF
financial depression remote IL not impossi-
BILE, and proceeded with his subject. an
nouncing that he would renounce all party
considerations upon the question OF the
currency but would unite with any men OF
any and all parties in the preparation and
passage of a measure which would provide
a currency that would be always safe and
stable and sufficient to meet all require
merts Of trade and commerce.
The Ranking Systems of Europe.
Proceeding to examine the banking and
currency systems of the other nations OF
the world, he gave a concise and succinct
history Of the Bank of France. which, he
said, was a gigantic monopoly. sketched the
Reichs Bank of Germany and the Bank of
England. and then paid attention to the
national banking system OF the United
States. which he characterized as-.utteriy
inadequate to furnish currency for the peo-
pie and fneffectual to provide an elastic cur
rency at all. Another system must be pro-
vided, he said. but the step toward IL must
be forward. and not backward.
should Not Return to state Bonds.
Under no circumstances should We re-
turn to the system of state bank circulation
which prevailed before the war;" said Mr..
Springer.
IF there were no other reason for oppos-
ing a circulating medium issued by state
banks, the argument of Inconvenience ought
- R3ata Thar fnrf fntrr
states In the Union and four more un-
doubtedly will be admitted in the near fu-
ture. Each of these states would have diff
ferent laws regulating the organization of
banks and providing security for the circu-
lating notes. There are over nine thousand
banks In the United States at this time.
Assuming that all of the states would avail
themselves ultimately Of the right to in
corporate state banks having authority to
issue circulating notes. and that all existing
banks would avail themselves of such au-
thority, the different kinds of notes which
would be put in circulation and their num-
Der would be confusing and embarrassing
in the extreme to all those engaged in
active business"
The History of State Banks.
He then went at great length into the his
tory Of state banks, and considered them
IN their every relation to the people. quot
ing copiously from legal decisions and
speeches Of statesmen in opposition to
them. He considered the various PROPOSE
tions by which a national currency may
be issued under the authority of the United
States government. He opposed the loaning
of money to the people and the issuing Of
currency to pay government expenses. and
proceeded to explain the measure introduced
by himself. No. 496O, which provides for a
national currency.
clAimed that its adoption would eradicate
the evils which now inJure the financial
fabric of the country.
What is Real Paternalism.
After denying that a state bank has any
more right to issue paper currency than it
has to coin silver and gold into eagles and
dollars Mr.. Springer said that he favored
that paternalism in all things which the
Constitution of the United States has es-
tablished. the paternalism which gives Con-
gress the power to lay and collect taxes,
duties and imposts to provide for the COM
mon defense and general welfare of the
United States; to regulate commerce with
foreign nations and among the several
states; to establish uniform rule of natu-
ralization: to establish post offices and post
roads; to promote the progress of science
and the useful arts by granting patents to
inventors and copyrights to authors; to
raise and support armies and provide and
maintain a navy; to coin money and regu-
late the value thereof. and of foreign coin,
and TO fix the standard of weights and
meas es.
All ,hese powers smack of paternalism
but they are essential to the maintenance
Of the rights of the people and to the pres
ervation of our government. To provide a
national currency is no greater exercise of
paternalisnn than II is to execute any OF
the powers which 1 have enumerated.
/ would maintain all the rights of the
states, the rights which are guaranteed to
them by the Constitution, and which they
reserved to themselves when the Constitu-
tion was established; but / deny the right
OF any state or of the people of any state
to furnish the people of another state with
a circulating medium, or to issue notes or
any kind intended to circulate as money
in any part Of the country"