Rensselaer Republican, Volume 16, Number 19, Rensselaer, Jasper County, 17 January 1884 — NATIONAL BANKS. [ARTICLE]

NATIONAL BANKS.

Proposed Legislation by Congress—Opposition to the Sherman Bill. [Washington Dispatch.] The Flnanoe committees of tbe two.house* have entered upon the consideration of the Important subjects referred to them. Last winter, when the bill extending the national bank charters was passed, it was the general opinion that the question of the existence of the banks was settled for at least twenty years, but, under existing conditions, the time can be easily calculated when the basis of the system will have reached Its vanishing point. Two eouiiiotlng propositions are now before the Finance committees. One looks to giving to the national banks a more stable basis; the object of the other is to ultimately supplant the present system by treasury notes. The Senate Finance committee has under discussion the bill of Mr. Sherman, which, in brief, proposes to allow national banks to issue circulation to an amount within 10 per cent, of the market value of the bonds. Provision is made that in the event of shrinkage the Secretary of the Treasury shall have the power to call upon the banks to make good their margins. The meetings of the committe have not been attended by all the members, Messrs. Allison and Aldrich (Republicans) having both been absent. Enough has been said, however, to show that the Democrats will oppose the Sherman plan, while the Republicans are not all prepared to support it. The Democrats axe not. prepared to go further than to agree that the banks may issue circulation equal to the par of tho bonds. This is an increase of 10 per cent, over the existing law. They may also vote for some reduotion of the tax on circulation. The Republicans of the committee are not all agreed to the plan of the Sherman bill. Senator Aldrich proposes to introduce a bill of his own which provides for the exchange of the 4’s for 3’s, with the difference to be paid in cash. Then he would allow the banks to issue circulation equal to 100 per cent, of the value of the bonds, instead of 90 per cent, as under existing law, or 90 per cent. Of the market value, as proposed by Senator Sherman. He thinks that a bill like the one he will introduce will settle the banking question favorably to the banks and tbe country for twenty-three years at least, which he does not believe Wiil be achieved byMr. Sherman’s proposition. The suggestion of the Secretary of the Treasury, that an additional appropriation will be necessary if the printing of the $1 and $2 notes is continued, will furnish a new text for the discussion of the financial question. Some of the silver men indicate their purpose to take advantage of this suggestion to refuse an appropriation for the $1 and $2 notes, the expectation being that if these notes shall be'retired the effect will be to force the silver dollar into circulation.