Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-10-03
WILDCAT WICKEDNESS
Denounced by Matthew Marshall,
Who Is Glad That Cleveland
DOESN'T PLEAD FOR SUCH BANKS.
The lnfatiOn lays of Indian Shell Money
Easily Recalled
BY THREATS OF STATE BANK RASHNESS

N EN
is the title OF Matthew Marshall's article
tor to-morrow's Sun, which is as follows:
Although Mr. Cleveland, in his letter ac-
cepting the Democratic nomination for the
Presidency has not formally repudiated the
declaration of his party at Chicago in favor
OF state bank currency, he has at least not
adopted it, and has indirectly referred to it
with dIsapproval He says. with truth, that
in dealing with the subject "no selfish
scheme shouid be allowed to intervene and
no doubtful experiments should be at
tempted. The wants of the people arising
from the deficiency or imperfect distribu-
tion OF money circulation ought to be fully
and honestly recognized and efficiently rem
edied. 1t should, however, be constantly
remembered that the Inconvenience or loss
that might arise from such a situation can
be much easier borne than the universal
distress which must follow discredited
currency"
shall, therefore, vote for him, upon the
assumption that if the question ever Of
hcially comes before him he will decide
against 4 revival of the wildcat money
which we had before the war.
The Scheme Placed in the Books.
On the other hand the compilers of the
Democratic campaign text book have in
serted in it an elaborate argument in favor
of this same selfish scheme" and doubtful
experiments;' several newspapers, from
which had hoped for better things, have
printed editorials more or less defending it,
and last week ex-Secretary Fairchild, in the
IRde: e7lde1, advocated it at length. as both
wise in his Judgment and approved by many
o. the most conservative business men and
bankers OF the country. He adds. with
credulous simplicity of which 1 never
thought him capable: NO one need have
the least fear OF wildcat money from that
source" Mr.. FairchiId evidently is not
familiar with the country's past experience
in this respect, OF, if he is, he deliberately
shuts his eyes to the possibility of its re-
newal. According to that veracious his
tOrlan, Diedrich knickerbocker, the effort
was made on this island, $50 years ago, by
One OF the Dutch Governors, to supply, by
manufacturing quantities of wampum or
Indian shell money, demand like that
made at present, for currency in sufficient
volume for the purposes OF business. The
first effort of the operation was, as might be
expected very stimulating to trade, but the
Inevitable collapse came in due time, and
then gold and silver demonstrated their
superiority.
Paper More Plenty Than Trees
The other colonies. at different later
periods resorted to the more civilized ex-
pedient of paper promises, and it was en-
ployed by the Continental Congress with
such recklessness that at the end of the
revolutionary war the national currency
would not bring a cent on the dollar in
specie. The colonies, subsequently, again
tried their hands individually at the busi-
ness and emitted quantities OF what were
called bills of credit, which, by the time the
constitutional convention of 17S7 began its
work, had become so discredited that merch-
ants in the great commercial cities refused
TO take them in payment for goods.
In Rhode Island riots followed an effort to
force into use State money, while in Massa-
chusettS the distress of debtors who could
not pay their debts with it brought on the
q Sh1 " ahpl Z tyrQc
sense OF the trouble caused by this State
tamper1n2 with the currency.that an article
was insertedin the new Federal Constitution
declaring that no State "shall coin money,
emit bills of credit or make anything but
gold and silver coin L tender in payment of
debts"
That the purpose of tins prohibition,
taken in connection with the grant to Con-
gress of the power to coin money and regu-
late the value thereof was to vest in the |
National Government the exclusive right |
OF creating currency there is no doubt. |
Daniel Webster and other speakers in |
the debate in 1852 upon the United States |
bank charter asserted it without contradic-
tlon.
Sneaked Around the Constitution.
Storey, in his commentary on the Consti.
tuition, expresses the same opinion, and
says that this was also the opinion of Samnel
Dexter, as well as of Daniel Webster. But |
very soon after the adoption of the Consti- |
tuition in 17s9 the States began chartering |
banks of Issue, and thus, by corporations of |
their own creation, they did indirectly what |
the Constitution forbade them to do |
directly.
The financial necessities resulting from |
our protracted revolutionary struggle |
caused this violation of the spirit l. not the |
letter of the supreme law of the land to be 1
connived at, but at a later period the right /
OF states to charter banks of issue was dis
puted, and the question came up before the |
Supreme Court of the United States. This
laara hort tn .x,,%
which the Bank of the Commonwealth in ,
kentucky was party anG Henry Clay one |
of the counsel Banks of issue had, how
ever, by that time become so numerous, and
g decision pronouncing them illegal would |
have produced so much mischief that the |
court, by 4 small majority, Justice Storey /
being one of the dissentients, sustained the
bank, and thus gave State bank currency a /
lease of life, which it retained until Con-
gress, in lS65, by the prohibitory tax upon it
Of 10 per cent per annum, now in force. ex-
it.
Bitter Recollection of Times Past,
OF the currency orders which were pro-
duced by the multiplication of banks of
issue just prior to the crisis of 1887 have q
lively recollection, but unfortunately, the |
which suffered from them has SO
nearly passed away that its testimony is of |
little weight at tie present day. More /
potent, 1 hope, Will be the voice of the sur
yivors of the period just preceding the civil
war, including the panic year, 1857, when the /
currency issued by innumerable Western
banks, and vainly supposed to be secured
by the pledge of Virginia, Missouri and
other State stocks, went down to as low
point in some cases as 40 cents on the dollar
in specie.
Here at the East the casualties among
State banks were fewer and less severe, but
,till they sufficed to create general distrust
Of their notes. and to make khe advent of
national banks almost universally welcome.
freely acknowledge that the suppression
Of state bank circulation by the device of
axing it is considerable stretch of the con-
;titutional power of the general Govern
nent, but inasmuch as the result reached
was one originally intended by the Constitu-
ion, it is a case OF fighting the devil with
ire, and accept the means for the sake of |
he end. If, indeed, the notes of the banks
,f each State could be penned up within the |
,onndaries of that State, and not suffered to
circulate beyond them, it might justly be
Urged that the matter was one purely local, |
With which Congress had no right to
neddle.
Other Specious Arguments Exploded.
We all know however, that the States are
% closely connected together by trade and
raveI that the citizen of each State is as
ouch interested in the citizens of all other
tates in having their currency good and
ound because he is liable to have to re-
Give it any day in the transaction of busi-
ess.
The speclouS argument mas peen put Iortn
n behalf of this sort of circulating medium
hat it is elastic and expansfble, or, as one
ritter expresses it, "a currency that will
ONE out when it is wanted ard go back
hen it is not wanted" The idea appar-
ntly is that State bank notes resemble tine
piFits whom a necrcmancer summons to his
eTyice with a wave of his wand, who ap~
ear when they are called and disappear
hen they have done the task required of
hem.
This is all very pretty in imagination. but,
| act no such currency ever existed. The
- lind of notes which nearly anSNer to |