Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1892-11-04


the United States government so long as
the volume of the United States bonds suf-
fees for such security.
Under these conditions if state bank cir
culation SO prohibited, we may be drawn
into the dangerous condition on the gov
eminent undertaking to supply the people
with lawful money. That means the forced
circulation under an act of legal tender, Of
legal tender notes or greenbacks at the dis
erection Of any congress.
On the other hand, let it be assumed that
the tax upon state bank circulation is re-
pealed, then may not each state establish
its own method of securing the redemption
of bank notes payable in lawful money!
Must not the state establish the quality
and kind of security, if any, to be held by
each state under such conditions?
The country is now rich enough to sup
ply itself with all the coin required by
travellers who pass from one state to anoth-
erwho might distrust the bank notes. That
want could readily be met, even if the ex
isting volume of legal tender notes and
national bank notes were wholly with
drawn But it does not follow of necessity
from the repeal of the
TAX ON STATE BANK NOTES
that either the existing volume of national
bank notes, legal tender notes or coin certi.
flcates should not continue to be used and
to circulate if required. Either of these in
struments of exchange, coin or lawful
money now existing, would be found to
fulfil every requirement that would be met
in passing from one city to another.
1t is true that bad money or deprecated
money, when forced into circulation by an
act of legal tender, drives true money or
good money out of circulation; but it is
equally true that good money of full value,
whether legal tender or not, drives bad
money out of circulation when that money
is not forced upon an unwilling people by
an act of legal tender.
Therefore it follows that if after the re-
mission of the tax on state bank notes, the
state did not legislate wisely for the protec-
ton of those who were to be allowed to
issue state bank notes, and did not assure
their redemption, then the banks could not
put their notes in circulation. They would
be distrusted and refused or, if paid out,
they would be SO quickly presented for
redemption, under the present conditions
OF trade, that there would be no profit even
in attempting to put them out.
1t follows that if there is to be any rem
edy for our present difficulties, an adequate,
elastic and adjustable note circulation
must be devised, and the first step toward
a right solution of the problems must of
necessity be the repeal of the tax upon the
circulation of state bank notes.
Otherwise, as [ have previously stated,
the eastern and middle states, now holding
the greater volume of national bank capt.
tai and enjoying the greater part of the
right OF circulating national bank notes,
Will be held to have monopoly; the con-
sequence Of that will be dangerous call
from other sections for additional legal
tender currency, or an equally dangerous
call upon the government to coin q low
priced metal like silver into legal tender
money.
The question at issue in this matter
presents but these two alternatives to my
own mind. What other alternative does
this other side PRESENT.
This question is not in fact party ques-
ton. Long before the Democratic party
adopted the clause in it's platform which
calls for repeal of the tax upon state
bank notes, that policy had been advocated
in many of the principal financial papers
of this country, and by many persons of
repute who are held to be conversant with
finance and banking, without the slightest
regard to their political affiliations.
1t is danger to sound financial 1egisla-
ton when one party attempts to blind the
eyes of the people to the prejudice of the
other party upon such an ISSUE
This subject should be dealt with as the
silver question has been dealt with in the
last session of congress, without respect to
party, and with view to the safety and
security of all the financial affairs of this
country.
EDWARD ATKINSON.