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Show CURRENCY FOR STATE BANKS. Wo note that Col. Willis S. Paiue in tho sixth edition of his "Banking "Bank-ing Laws" comes out iu favor of tho issue of currency by Stalo banks. It, ma' bo that this suggestion will prove remedial in a large degrco for the currency situation, and as he is a banking bank-ing expert, his opinion is entitled to weight. It might in fact, be a far hotter hot-ter proposition than anything that Al-drich Al-drich is likely to bring forth. Under the national banking law, Slfll a' liriTilrc nu ul. -K:.1,1 A- issue currency under the penalty of a tax of ten per cent a year if they do so, which is prohibitive. Col. Paine 's idea is that the State banks might bo authorized to issuo currency under banking laws that could be approvod by the National Comptroller of tho Currency. Cur-rency. Uc calls attention to (he fact that Nov,- York and other States have kept up thoir banking legislation; that fl, ..o;nr.l u..i. l : : iiiuiuuui uuuii wiw ib in iaut as ii our as the case would fit, a copy of the New York Stato banking laws. These laws havo been kept up to date, have been renewed from timo to timo, so that Now York and other Stales that have also kept up in thoir banking legislation, leg-islation, would be in fit condition for their State banks to issue well protected protect-ed currency, with little- dclny. It is objected in some of tho financial journals that we already have loo much currency, and that to allow State banks to issue more would make a glut in the money market. But the trouble is that undor our present banking system, whonovor there is a currency panic the money is all hid ntwry; none of it comes out. Just when it is needed, it cannot be had. It would be different with State currencj-. Well-protected issues of Stato currency uudcr the experience ex-perience that the country has had, ought to be as good as 0113' currency we could have; and wo confess that so far as tho banking proposition is concerned, con-cerned, we should be glad to seo a trial made as Col. Paine has suggested. Of course, the tax now in forco on Stato bank currency would have to bo abolished, abol-ished, and tho supervision of tho Comptroller Comp-troller of tho Currency would havo to bo exercised so as to socuro proper and 6afo banking laws in ovcry State which might authorize the issue of currency cur-rency by the banks thorein. With such supervision, added to the experience of the past, we sec no reason why such currency could not bo made as safe as any, and it would probably be more in cvidenco in panics where the need of it would bo greatest. It would also be better distributed locally, and jiot as likoly as other bonds of currency to be massed in the financial centers. |