News Observer Chronicle

Next week the House will dispose of the tax on State Banks. The repeal bill, in one shape or another, may pass that body; but we have slight hopes of favorable action in the Senate. The ball however is rolling. For twenty years we have advocated this repeal, and the prominence we gave to the subject perhaps had some influence in getting the recommendation for the repeal of the tax embodied into the Chicago platform. We would therefore be much gratified if the House should act favorably on the proposition, as it would give ground for hope that ultimately the Senate might be brought to the same mind. Some years back only four Senators voted for it: and it found not much greater favor in the House. If now it should pass the popular body, great progress in public sentiment will be demonstrated, and we may reasonably hope that sooner or later the tax will be removed. The discussion in the House will perhaps add to the momentum of the movement, and it may correct some erroneous notions as to the results of repeal. For ourselves, we do not desire any currency that is not entirely safe and sound. And no unsound currency can be kept out in these days. There must be such financial capacity and security as will establish confidence among business men. Wildcat banking cannot stand. Nobody would have aught to do with an institution on such a basis. But good State banks can furnish sound currency to the people and make a living profit at an interest charge of six per cent. Our object is to bring about that situation, affording our people ample facilities and restoring their prosperity.

The constitutional powers of Congress to coin money and to regulate the value thereof, referred to by Mr. Springer in his speech yesterday is foreign to the purpose. To coin money means only to coin gold and silver pieces: nothing else is money: To regulate the value of money means to regulate the value of the coins, both foreign and domestic. It must be remembered that for some time after the Constitution was adopted, we coined no money, and the only metallic currency we had was brought here from foreign countries. Each year, even now, the Treasury Department proclaims the value of foreign coins measured in our dollar. All this has nothing whatever to do with paper currency. State banks were in operation issuing notes when the Constitution was adopted, and they continued to issue notes until after the war. Bank notes are not money.