The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-07
TAXATION OF STATE BANKS.
HOKE SMITH BACK OF A SCHEME
TO TEST THE LAW.

&
Issue of Currency TO Be Made TO
Force "A Ruling on the Matter.
President Cleveland said TO share
sir. smiths Opinion That the Tax
l. unconstitutional.
Atlanta, Dec. 6.-The discussion on the
bill introduced at the last session by Mr..
Boifeuillet of Bibb for the appropria ton
of the sum of $4,000 to the trustees of
The Georgia Normal and Industrial Col
Iege at Alilledgeville for the purpose of
constructing dormitories and other nee
essary buildings, occupied the greater part
of the time in the House this morning.
It was discussed at length by Messrs. Boif-
feuiIlet of Bibb, Farmer of Coweta, Den
nard of Wilcox, Pope of HARRISON. Branch
of Columbia, Boynton of Calhoun and
Hodge of Pulaski. Hurst of Walton, Nc
Donald of Ware and Baggett of Laurens.
with the amendment offered by the finance
committee, to which the bill was referred,
changing the appropriation from $4,000
TO $4,000. it passed the House by a vote of
80 TO 81
A call for reconsideration of the action
of the House yesterday on Mr. Hightow-
er's pension bill, was made in the House
this morning by Mr.. Boynton of CALHOUN
but the call was defeated by an over
whelming majority. after several speeches
were made for and against the motion.
Mr.. Jenkins of Putnam, chairman of
the general Judiciary committee, intro
duced a bill this morning under which the
constitutionality of the 10 per cent. tax
on state banks of issue will be tested in
the supreme court of the United States
if it passes. Mr.. jenkins bill, which, it
is understood was prepared at the sug-
gestion of Secretary of the Interior Hoke
smith, provides for the repeal of section
of the Calvin law, which was passed
by the last general assembly. The Cal
WIN law was intended to go into erect
when congress repealed the 10 per cent.
tax. Since, howeN er, the tax was not re-
pealed the Calvin act has been a dead let
ter. With the amendment OF Mr.. Jen-
kns put upon it ii is intended to test the
COnsututiOnality of the tax by organlz-
ing state bank and making an issue Of
notes. The trouble about doing TINS un-
DER the bill as it now stands IS that be-
lore a bank can issue notes under II
deposit of $4,000 in bonds is required, upon
which deposit the notes are TO be based.
II would have been difficult 10 secure
This $4,000 deposit for a test case ana
therefore the jenkins amendment strikes
this clause out Of the bill, so
that a bank can deposit 500 and
issue half that aount in notes. In order
10 get the amendment passed. Mr.. Jen-
bins had the bill engrossed this morning
instead of being referred to a committee
which will be a considerable saving OF
time 1t is not believed that there will
be any opposition TO IT, unless 1t should
develop from a political motive on the
part of those who would like TO see Sec
rotary Smith denied the opportunity to
test the question, and If successful, make
a political stride that would help him IN
his senatorial ambition. The state bank
question is, however, of more Importance
TO the people of the state, many men,
bers think, than the senatorial toga and
it is likely that the amendment that viii
give an opportunity 10 test its validity
viii be passed.
Secretary Smith proposes to see to the
organization of the bank, and the issuance
of the notes. lie VIII take stock in the
bank himself. if necessary. When the
notes are issued the Secretary of the
Treasury will undertake TO tax them and
this will form the issue. Mr.. Smith will,
in all probability be the legal representa-
I'VE SSt b If the the Panf nited and sta iis
supreme court to restrain the collection
of the tax, and later made the argument
before that tribunal. He is determined
10 see the question tested, and viii so as
far as it is necessary in trouble or expense
TO see it done. Secretary Smith himself
believes that the tax is UNCONSTITUTIONAL
and in speaking of the matter to-day said
that President Cleveland and Secretary
Carlisle hold the same opinions. Mr.
smith thinks that the case can he heard
and decided some time next spring.
The bill of Mr.. Dempsey of BUTTS TO
prevent the increase of the bonded debt
on by repeating the act approved Sept. g.
1881, to make permanent the income IF
the University of Georgia, came UP this
morning. The question was thoroughly
discussed before being put to 4 vote. The
vote stood 43 for the bill and 81 against
il. Not receiving the necessary eonssitu-
tiOnal majority, the bill was lost. Mr.
Dempsey gave notice that he would move
for a reconsideration OF the action of the
House tomorrow
The session of the Senate this morning
was lively one. Senator Longs
bill to provide for fixed
compensation for an insurance
commissioner and a clerk of the insur-
ance department of 81 200 per annum each
came up and excited a heated and lengthy
discussion, which grew personal at times
The bill was reported back to the Sen
ate by the committee with a favorable
recommendatiOn with an amendment max
ing the salaries $1,000 instead of 81 600
At present the controller general who
is also state insurance agent, receives a
salary from the state of $1,000 for his
celVes in fees something in the neighbor-
hood of $4,000; last year it amounted to
$500. Senator Long made a strong ar
Sument against the amendment. In his
speech he said that he was not voting for
sentiment. He was willing to honor the
confederate soldiers, but that he thought
S2,000 year was too much for the con
ne mas to do as state insurance com
missioner. He said there were other
confederate soldiers just as gallant, who
We're practically unknown.
ne amendment was adopted
senator Harris made an argument
against the passage of the bill
The vote stood 80 to against the pas
10