The Republican. [volume] (Oakland, Md.) 1877-current, 1892-10-07
The Fight Against the National
Banks

Banks
The Democratic campaign text
book has appeared, and in it is the
long-heralded chapter by ex Secre-
tarv of the Treasury Fairchild on
Section s of the Dem ocratIc plat
form-the section which demands
a repeal of the 10 per cent. tax on
State bank issues and consequent
return to the "wildcat" system of
forty years ago.
Mr.. Fairchild is the only living
Democrat that has ever been Secre-
tary of the Treasury, and is there
fore presumably the Democrat best
able to defend the Democratic posi-
ton on the subject of finance. He
was selected for the purpose by the
Democratic National Committee;
and he has handled 1t in the most
conservative manner possible.
This was of course necessary to
prevent stampede of business men.
If the Democratic campaign book
/ should contain such matter as
/ Democratic orators in the South
and West utter on this subject, it
would open the eyes OF Eastern
business men too wide to the real
intentions of the Democratic party.
Secretary FMrchld's defense of
Section s is very lame. He gives
long history Of the national bank
ing system, and he admits that 1t
has proved itself most admirable
system, and has accomplished all
the objects for whose attainment
it was designed. That will not
please the Southern and Western
Democrat; but they will swallow it
for the sake Of what follows.
Mr. Fairchlld goes on to allege
that as the national banking system
is founded on the United States
bonds, it must necessarily expire in
1907 at latest, and substitute for
it must be found. Then he goes
on to argue that if the State banks
were revitalized:
"We would then have a financial
arrangement in harmony with the
spirit of American institutions,
paramount Federal system and a
local system Of issue. This is the
divergence that characterlzes and
gives strength to our fabric. The
country is too extensive, the condl-
tons and demands of the different
sections too varied, to make it pos
slble for the central govern ment to
supply satisfactory currency for
operations not connected with its
own affairs. y Finally, tins
repeal of the tax would open the
way for the establishment of cur
rency flexible and responsible.
When trade was active and the
crops had to be moved the issues of
State banks would supplement the
national currency. These issues
would be of great advantage to IN
terror localities where the need of
them exists. Being the creatures
of commerce, they would obey the
natural law of supply and demand,
when an increased circulation was
needed to moye the crops"
Not a word about the financial
stability of the State banks. Not
a word about the melancholy his
tory of those institutions before the
war! Not word of explanation as
to the manner in which their issues
could be kept at par, Merely a
ehttering generality about their be-
ing in harmony with the spirit of
American institutions.
If the national banks are abol-
lshed, where will be the "para-
mount Federal system" that Mr..
Farchild talks about? Where will
be any balance ahead for our
national financial system? The
fact is the Democrats do not care
for balance wheel. For the sake
of catching Greenback and anti
national bank votes, and getting
somehow into possession of the
Federal offices, they are willing to
turn the country into a financial
chaos and parayze its business.
We advise all thoughtful business
men to consider this matter very
seriously. This is no imaginary
danger that threatens us; it is I'M
minent; and it cannot be averted
except by tie election of the Repub-
lican national ticket and Repub-
llcan Congress. N. Y. Mail and
Express.