Year: 1878

| Mr.. Harris of TENNESSEE, introduced In


Congress yesterday, SO tbe telegraph tells us,


a bill TO repeal section 4412 OF the Revised


Statutes, which places tax Of 10 per cent on


the circulation of all State banks. This tax


was evidently war measure which had the


effect as 1t was intended 1t should have of


destroying the circulation of the State banks


altogether. The question involved In this


bill was energetically discussed some time


ago, the DEMOCRAT being among the first


newspapers to demand the repeal of this tax


as measure absolutely necessary for the
! South, and the only measure that would


secure for 1t the amount Of capital needed


to develop its Industries. The South Is
| unanimous on this question. The Chamber


Of Commerce Of Nashville, few days since


demanded the repeal of this tax and numer-


Gus other commercial bodies of Tennessee


and other Southern States requested their


representatives to introduce some such meas


ure In Congress-


The discussion Of this question was not,


however, limited to the South; 1t reached the


North also. The New York Herald took the


matter up and seemed disposed to favor the





Eastern interests, and would, beyond doubt,


benefit the South greatly by giving 1t more


capital, and at the same time making It's
bonds safer and more reliable Investments


Perhaps the funniest argument yet made
on this question Is that made by the Phia-
delphia North American, bitterly Radical
sheet. The North American does not deny
that the South lacks capital, that 1t needs
more banks and money. but 1t ascribes this
lack of capital, not 50 much to this prohibit
tive section 4413 of the Revised Statutes, as to
Southern perversity, obstinacy and treason.
every possible exertion has been made by
the Republicans since 1866" It says, 'to ex-
tend the national banking system at the
South, and for a time these efforts promised
success; but the revival of the old oligarchv


,ue recovery Of the political power, etc. have
undone much OF the work that had given such
promise to the South" In other words, we of
the South cherish bitter hatred OF ma
tional banks because they were born Of the
war, and desire to root them out of the
country because this tax TO maintain them
was war measure.


1t continues: eve have as yet been unable
TO find any evidence that banking under State
laws has been used to supply the want of the
South. though we presume that to limited
extent 1t has attempted to do So" There are
amply sufficient reasons for this failure of
the State banks In this tax Of 10 per cent on
their circulation. This tax was meant as
q prohibition of State banks, and was
successful The result is that the banking
capital of the South is to-day only one tenth
of what 1t was before the war; the State
banks were destroyed by the tax; International
banks have failed to take their place.


There is scarcely any need of reviewing
the argument In favor Of the repeal of this
tax because no argument has ever been ad- !
vanoed on the other side; indeed, as will be
seen the North American the most BIT
ter Republican and national bank paper, vir-
tually admits the necessity of more banks
and more capital for the South.


This measure is essentially Southern |
The West and East have capital
enough already. AL our capital was lost
during the war. 1t has been proposed to send
D commission to Europe to secure the capital
needed by the South. How much better
would 1t be If we could secure this money at
homo. as we can IL this tax be repealed. The
South has hitherto always followed the East
or West on financial questions. Apparently
we have either had no financial views of our
own. or have been unwilling to announce any
views on finance through fear of causing a
split or difference in the party. When
the Democratic State Convention Of Mis-
sissippi, for instance met some months
ago, one of the members of that body
wanted financial plank inserted in the plat
Form. but this proposition was at once cried
down on the ground that there was so much
difference of opinion on this subject among
5he Democrats of Mississippi that any finan-
'ial plank would only cause split In the
oarty. AS the South is now free from Radl-
,al rule. and looks forward to It's complete
and restoration, it behooves us
% pay some attention to questions Of finance
md banking In the future; at least to have
ettled and determined financial views Of
ome kind. some policy looking to the i'm
,rovement and development OF the South.
There is no question upon which the whole
'outh would and can more thoroughly unite
han on this very proposed repeal OF the tax
n State bank circulation.
The question Is now at last fairly before
congress. Gen. Butler, of South Carolina.
as introduced the bill in the Senate, and Mr..
larris in the House. Harris bill has been 1
eferred to the Finance Committee; 1t will be e
eported In few days, and It Is to be hoped
will be acted upon by Congress at once. =