National Republican., 1880-07-22
NATIONAL AND STATE BANKS.

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NATIONAL AND STATE BANKS.
In ante-bellum times the state banks
were the curse of our financial condition.
They had been born of democratic preju-
dice and spite which overthrow the United
States bank, an institution which approxi-
mated more closely to our present paper
currency than anything we have ever
had, and taking its place these banks
became the plague spot Of finance.
Tho state banks were really the earlier off
spring of the states rights heresy which has
since eliminated in open rebellion. One of
the richest fruits of that attempt Of states
rights to break the bonds of this union was
the utter extinction of state banks. These
institutions were pernicious in many ways.
They gave us deprecated and fluctuating
paper money circulation which subjected
the business interests of the country to
great annoyance and heavy losses in the
way of discount and shaving. Then, again,
they had become mere political engines to
sustain and uphold the power of the demo-
cratic party, and with their downfall ended
the reign of that party in this nation.
The democrats rebelled-the war fol-
lowed, and among the incidents of that
struggle was the overthrow of state rights,
slavery and the wildcat system of banking
and currency that the democratic party
had fastened upon the country. Out of the
war came our present monetary system,
which is the soundest and most convenient
the nation has ever known. 1t is the
equivalent of coin anywhere in the land
and consists of greenback notes and notes
of the national banks which are based upon
the national faith, all redeemable even
tually at par with specie. This is our pres
ent monetary system, and it proves to be
the best known to the civilized world. The
death Of the state banks was q severe blow
to the democracy, and its first spteful ef-
fort in the way of revenge was an attempt
to undermine confidence in and every pos
sible way that prejudice could invent 10 de-
preciate the value of the government green
back. 1t was denounced by democratic
concert of action as utterly worthless be-
yond the value in the rag market of the
paper on which it was printed. But the
greenbacks were sustained in confidence
and the public faith until they have become
of par value with gold and silver in spite of
the democratic war waged against them.
Then followed the national banks which
were demanded for the purposes of busi-
ness. They became the pet aversion of the
democrats for the reason that like the
greenbacks, they were of republican origin.
They are sound and invulnerable. Their
notes are as safe as the national faith, and
they subserve q wise purpose in matters oil
trade and commerce. There may be defects
in the system, but they are trihng and sus-
ceptible of reform. These institutions have
been the target of democratic abuse and
traduction for years, and yet their hold on
public confidence is unimpaired The wal
of the democrats, waged to discredit and
drive out the national banks that their pet
system of red-dog and wildcat banking
might supplant them continues and will
continue until either the prejudices and
hates of the democratic party die out or it
self finds its final rest.
The vain hope Of succeeding TO power in
the coming election prompts the democratic
party to inventions looking to the speedy
overthrow ofthe national bank system. AL.
ready has Mr. HURD Of Ohio, ono of the
ablest men Of the democratic party entered
upon the work of preparing a scheme fol
the abolition Of the national banks and the
substitution of state institutions in theil
stead so soon as that party shall have the
power to control our monetary system. He
proposes to have the issues of the state
banks secured by state instead of govern.
ment bonds. This proposition contemplates
that all past experience in regard to the
stability of our present currency and the in.
stability Of the notes of state banks shall be
forgotten and lost. 1t seeks TO reverse the
wheels of progress and set the nation bael;
at least two decades In view of these ex
periences such measure seems TO c0ntem-
plate financial suicide, 1t is the first stel
for the restoration Of state power and wha
is known as states rights in contradistinc
ton from national power and rights.
proposes TO sever the nation from its consti
tutional duty to provide money for the peo
pie and rs far as possible to transfer tha
power and prestige to the states TO their ag
grandizement and at the expense Of the ma,
ton. 1t is not difficult to see the drift Of
this purpose. 1t is in the interest of state,
rights and for the purpose of weakening
the national power as far as it can be made
TO subserye that end, 1t is a measure hos
tile to the business interests of the people
and it is well that it has been foreshadowed