Question: Resolved, That the Government tax on State Bank notes should be repealed.

Brief for the affirmative:

J. ALLEN and A. S. APSLEY.Best general references: New York Commercial and Financial Chronicle, May 14 and 28, 1892; Cong. Record 1891-2, pp. 5381, 5578, 5739; Nation, Sept. 15, 1892; David M. Stone in Forum, Aug. 1892.

I. The conditions under which the present tax arose no longer exist. - (a) It was a war measure to force the purchase of U. S. bonds: Cong. Rec., June, 1892, p. 5381. (b) As its purpose is now accomplished the States should legislate.

II. The present currency system must be changed. - (a) The National Bank system cannot last beyond the year 1907: Cong. Rec. Senator Sherman, p. 5381; Pres. Coe in Proceeding of Nat. Bank Ass'n, 1881, p. 30; Ingalls and Plumb in Sen. Journ. 48th Cong. 1st sess. pp. 1148-9, 1298. (b) There is need of more currency: Come. and Financ. Chron. May, 1892, pp. 781, 868; Cong. Rec. pp. 5576-9.

III. The repeal of the present tax would open the way to the best currency obtainable, - (a) It would allow the establishment of State Banks. (b) State banks would furnish the best currency. - (1) The present legal tenders are a burden aad menace: C. F. Adams, Chapters of Erie. (2) The issues by state banks would be more flexible and responsive: Cong. Rec. pp. 5577-8; Forum, Aug. 1892, p. 726.

IV. State Banks can be made secure: - (a) With the refusal of the tax, legislation throwing safeguards around the banks could be passed; Mass, Dem. Platform, 1892. (b) Notes not secure could not circulate under the conditions of today: Cong. Rec. p. 5578. (c) Before the war, the majority of state banks were sound: Nation, Sept. 15, 1892, p. 193.

Brief for the Negative.

S. M. BALLOU and C. E. COOK.Best general references: Labor's Cyclopaedia, I, 204-222; F. A. Walker, 'Money,' 481; Comptroller's of the Currency Reports, 1875, 1876, 1878, 1888, 1889; Royall, Andrew Jackson and the U. S. Bank, 34; Richardson, National Banks; Harrison, Letter of Acceptance in daily papers, Sept. 5, 1892; McKinley, Speech in Boston Herald, Oct. 5, 1892.

I. The state banking system was injurious to the people: Labor's Cycl. 1, 211; Walker, Money, 479; McPherson in Cong. Rec. 48th Cong. 1st Sess., p. 1086; Knox in Finance Report, 1876, p. 150; Pres. Harrison's Letter of Acceptance; McKinley in Boston Herald, Oct. 5, 1892.

II. The national banking system is adequate. - (a) It is absolutely secure: Knox in Finance Report, 1875, p. 201; Richardson, National Banks, p. 86; Sherman in Cong. Rec., 48th Cong. 1st sess (1884) 1082; Labor's Cycl. I, 217. (b) It can be indefinitely extended when it becomes necessary: Knox, A Permanent Nat. Bank Circulation; Comegy, Reports and Proceedings of Bankers Ass'n, 1886, 36.

III. The recommended repeal of the tax would revive the evils of the old system. (a) Insufficient and unequal securities. - (1) An account of diversity of laws in the states. (2) As evidenced by the present defective banking laws of many states; Knox, Finance Report, 1875, p. 202. (b) The people cannot be trusted to avoid wild-cat schemes, as shown by (1) The free coinage craze. (2) Endowment orders. (c) Repeal would tend to drive coin from circulation: Royall, Andrew Jackson and U. S. Bank, 55-57, 64; McKinley in Boston Herald, Oct. 5, 1892. (d) cost of discount and exchange. (1) Notes would be redeemable only where issued: M. D. Harte in Forum, Oct. 1891. (e) Tendency of the issue always to increase: Marshall in Boston Herald, Oct. 3, 1892; Walker, Money, p. 487.

IV. State Banks are an evasion of the Constitution: Const., Art. 1, Sec. 10; Rhode's Journal of Banking, Aug. 1891; Briscoe vs. Bank of Commonwealth of Kentucky; Peters, 257.