Los Angeles herald., 1892-09-07

British Guiana and Jamaica, San Do
mingo and the five Central American
states, and to minor degree in Austria,
France and Germany-all in exchange
for articles which we intended to gra-
tuitously admit.
The free list of the Mckinley tariff is
larger in the number of articles and in
the aggregate amount of their import
value than the dutiful list. What
would have been the result to the
United States If every article, before it
was put On the free list, had been made
a subject of inquiry, to see what we
would get in exchange for it? We
omitted to do SO for many years. and
that neglect cost the government advan-
tages in trade which would have
amounted to tens of millions of dollars.
This is the whole of the reciprocity
scheme. 1t is very plain and very SIM
pie. 1t secures valuable trade in ex-
change for articles otherwise destined
to be put on the free list. The Demo-
cratic party think they can discredit it,
and they make an effort, apparently for
the unpatriotic reason that they did not
originate it..
T With all it's calamities, the war
brought us one great blessing, ma
tional currency. There are many who
will say it is worth the cost of the war
to bring about 80 auspicious result to
capital and labor. Prior to the war, we
had the worst currency system of any
enlightened nation in the world. State
banks, with some exceptions, are thor
oughly irresponsible.
They existed by thousands in the
United States. Whenever one of them
failed, the result was large loss and
great distress among the people. No
one was responsible for the bills, and
they were generally found scattered in
the pockets of the laboring man, to
whom they were q total loss, without
any redemption whatever. OF these
state banks it was often truly said that
they caused debts to measure their
profits. They caused an aggregate loss
of hundreds of millions of dollars among
the poor.
Since the close of the war, all this is
different. Every paper dollar that cir
culates among the people has the
United States behind it ae guarantee.
ALI the banks that exist are under the
control OF the national government, and
II they fail as financial institutions, the
government takes care that their bills
shall be paid by securities deposited in
the government vaults.
Under these circumstances it is mat
ter for extraordinary surprise that the
Democratic conventions should deliber-
ately paes resolutions for the revival of
state banks. The palpable effect of this
policy, if carried out, would be to cheat
the poor man out of his daily bread. If
state banks be adopted and their circu-
lation attain large issue, no device
could be more deadly for the deception
and despoilment of all the commercial
and laboring classes. How the Demo-
cratic convention came to make such a
declaration, who is its author. what in
telligent purpose is in it, will remain a
mystery.
I have heard the argument adduced
lGab we wonld keep the money at home
if state banks were instituted; but we
should keep it at home because it would
be so worthless that nobody would take
it abroad. Were the system of state
banks revived, we would again have dis
counts at state lines; large charges for
drafts on financial centers, and general
suspicion of every bill offered in pay
ment, with liquidation every few years
that would be destructive loss to the
innocent holders of bills, and a corre-
spending profit to the parties owning
the banks.
Three Issues, which 1 have given, are
the issues on which I would arraign the
Democratic party. 1 would not multi
ply issues nor be diverted by our op-
ponents from steadfast adherence to,
and constant presentation of these
questions before the people, until every
voter is made to know and understand
their true and weighty significance.
Very sincerely yours.
JAMES G.. BLAINE,