The Montgomery advertiser., 1901-07-16

Almon, Kyle
 Altman. Lomax.
 Burnett. Long (Butler), Carmichael. of Col Lowe (Lawrence).
 bert. McMilian (Baldwinl. Carmichael. of cof- McMilian (Wilcox). Cobb. Morrisette.
 Coleman, of Walker, Mulkey. Cornwall. Nesmith.
 Craig, ONefll (JeffersOu). Cunningham. Pillans. Eyster. Renfro
 Espy. Reynolds QIenry). Ferguson. Rogers Uowndes). Fitts. Sanders.
 Freeman. searcy, . Gilmore seiheimsr.
 Graham. of Talla- Sloan.
 Greer. of Calhoun. sorrsll.
 Hood. Vaughan.
 Jackson. Weatherly,
 Jenkins. Willet.
 Jones. of Wilcox. williams tMarenso), x xinx; Wilson tClarks).
 The President-It appears upon cast ing up the vote, there are forty five ayes and fifty-five noes, and the mo- ton to table Is lost. The question re- CUTS upon the motion of the gentleman from Russell. the previous question upon the amendment.
 MT. Oates--The motion is upon the original section as reported.
 The President-On Section and the pending amendment.
 Mir. Oates--Will the gentleman from Russell withdraw the amendment?
 MT. Waddell--If the gentleman from Marion withdraws it, I am willing.
 By a vote of 5s ayes to 36 noes, the previous question was ordered.
 The President-The question will be first upon the amendment offered by the gentleman from Marion, which is to strike out two- thirds for the re- movai of the court house and insert majority.
 A vote being taken. the amendment was adopted, and on a further vote be- ing taken, the section as amended was adopted.
 MT. Parker (Cullman)-I move that the Article as adopted be engrossed and ordered to a third reading.
 The President-The next order of business will be the consideration of the report of the Committee on Banks and Banking.
 MT. Fletcher--I move that this ar- ticle be considered section by section.
 A vote being taken, the motion was carried.
 The President-The Secretary will read the first section.
 ne 3eCtlOn WAS TSdu dS IOlOWbs
 Section 1. The General Assembly or incorporate any bank or banking company or money institution, for the purpose of issuing bills of credit. or bills payable to order or bearer, ex- cept under the conditions prescribed in this Constitution.
 On motion of MT. Fletcher, the sec ton was adopted.
 Section 2 was read as follows:
 Sec. g. No bank shall be established otherwise than under a general banking law. nor otherwise than upon a specie basis.
 MT. Oates--I have an amendment which I had intended to offer at the conclusion of the report, but 1t may just as well be offered here.
 The amendment was read as follows: Amend Section ? of Article W by ad- ding to said section the following. Pro- vided, that any bank may be estab- iished with authority to issue bills to circulate as money in equal amount to the face value of bonds of the United States or of this State, county or city, convertible into specie at their face value, which shall before such bank Is authorized to issue its bills for circula- ton be deposited with the State Treas urer or other depository prescribed by law. in an amount equal to the aggre- gate of such proposed issues, with power in said treasurer or depository to dispose of any or all of such bonds for a sufficient amount of specie to re- deem the circulating notes of such bank at any time and without delay should such bank suspend specie payment or iail to redeem It's notes on demand.
 Mir. Oates-That amendment can do no harm, and, under existing circum- stances, would do no good. But we cannot say just what Is to come, and think it Is we'll to have this provision in this Article. You all know that the State of Alabama in two of our State Conventions, declared in platform in favor of the repeal by Congress of the 10 per cent tax imposed upon the issues of State banks. When the last one was enacted, 1t was followed up by the nat onal platform with a plank declar- ng in favor of It's abolition. The ques- tion was up in Congress, elaborately discussed and commented upon and .ailed by the few votes of accomplishing a repeal.
 Mir. Sanford (Pike)-JUst question for information. If we do not adopt the amendment you suggest, and put iL In the Cons titution, and the time should
  banks, would not the Legislature of the State have authority to establish them without any Constitutional provision?
 MT. Oates-I don't think 1t would, be- cause we are now considering Con- stitutional restriction of authority upon the establishment Of banks, and the Legislature would not have the poWGS to establish banks contrary to it's pro- visions, and, therefore, l offer this as an additional section.
 l was proceeding to say that this 10 per cent tax originated in this way. When the unfortunate Civil War came OF we had through all the States of the Union similar system of banking. which was a deposit of one dollar for every three of the banks circulation, and when specie payments were de- manGed, the banks were unable to re- spond and that culminated in loss. Ar ter the war. in 1868, the banking sys- tenn which had been started for the purpose of maintaining the credit Of the Federal Government was contin- ued. In the struggle which the Fed eral Government was undergoing with the Confederacy, it's credit had fallen to 50 cents on the dollar, and Secre- tary Chase and all others well knew that when the credit of the Govern ment of the United States went down to the low point which it bade fair to, the success of the Confederacy was an assured fact. So, in order to sustain 1t, MT. Potter of New orYk wrote a letter to Secretary Chase, suggesting the national banking system. It was my fortune to see that original letter, which has been preserved. MT. Chase