New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-22
" WILD CAT BANKING."
A FRAUDULENT SYSTEM WHICH THE DEMO.
Gratis WOULD RESTORE.

WORTHLESS BEtOlsh NE NOOLD
CHANGE 1T FROM ONE POCKET TO
ANoTHER-wHAT THE DEMO
CRATIC PLATFORM MEANS.
70 the Editor Of The Tribune.
Cir. The Democratic party Is having most discourag
ING exnerience IN its war on National banks. From
The first the leaders opposed that system In spite
however OF their most determined warfare, II went
into operation, and BY virtue OF IT'S intrinsic merits
gradually won It's way 10 usefulness ana pubic con
ddence until It came TO stand. US 1t now stands. at
the head of the banking systems Of the world 1t Is
quito safe "a state that no other has done
much IN currency supply and commercial exchange ms
has that and nothing could generally and so thor
ouebIy derange and demoralize business Interests Ia
such connection az would It's removal. It's worth
be appreciated only by those familiar with the oondi
,ion Of things existing before II adopted. But
this great business agency rs the outgrowth Of Re
publ,can policy. developed under Republican manage
ment That fact is sufficient to challenge the hos
ttl,,y Of the political party which could not be In
duced To cooperate with Republicans IN defence
Of the Nations life from rebel assault, but defended
rebellion because Republicans opposed rebellion.
Wholly defeated in every direct open attack on the
National banking system. the Democratic managers
find themselves driven TO resort 70 flank movement.
Thi, policy Is developed in the platform which con
stutes that party's declaration OF principe and pur
pose in the present campaign and consists Of this brief
10 per cent tax on State bank issues be repealed"
AS we'll understood this tax is indispensable 10 the
present National banking system. constituting. as IL
does its only protection and that OF the country
against whatever recklessness otherwise would ex'st
more or less under state authority Such tax re-
moved Il is assumed by the Democratic managers
that local banks would at once spring into existence
and drive out the National banks on which point
they no doubt are correct II would not take the
Legislatures Of the forty -four states and six Terri
tories long under direction OF adventurous oper
ators awaiting such agency, to provide schemes before
which the real capital and honest methods now EN-
ployed in the National banks would be driven from
that field
Fortunately for the country. II is not without ample
experience Of Democratic banking policy. II Is
within the memory OF many when that party. for
political reasons solely. succeeded In breaking down
the most stable and useful financial agency the country
then had known. by the substitution Of local banks.
rs proposed in the present case That was accom-
plished under the Administration Of General Jack
son IN its successful war the Bank OF the United
States Instituted in 1916. that banks charter was
10 expire in 1896. A second charter passed congress
In 1884 and was vetoed Throughout US existence
the bank had constituted the chief financial agency OF
the country giving to business Its FIRST reliable faci
flies in both currency and exchange. 50 widely were
IFS merits known that ITS notes were current through
ont the commercial world. To that time reliable
bank currency had been little known In this country.
while for exchange. dependence was yet largely on
cutting bank bills into two parts and sending one part
Of each By mail TO the payee, TO be followed by the
other part upon notice OF receipt Of the part first rent
The Sudden destruction Of so important business
agency compelled the attempt the part OF Its de-
etroyers mitigate the severity Of such pnoic JOSS
through a substitute Devised for the OCCASION hc'
oordngly the public deposits, regardless Of law. were
removed from the obnoxious Institution and placed
with selected State banks. In orler to provide cur
NJ fhe off
withdrawn these "Pet Banks" as they we're called
were encouraged to treat such Government iufoS rs
basis for circulation. This they we're only TOO READY
20 DO as was shown by the flood Of bills at once
thrust upon the country. OF course the inevitable
effect OF such sudden increase of currency 1.-THE bills
OF the United states Bank being yet largely In CIR
cua,ion) WIS to stimulate speculation. This state OF
things was seriously aggravated by the fact that the
Pet Banks we're located mainly at centres OF TRADE
In ire East thus excluding the newer seo'iohs VI Tue
South and West from the coveted local advantages OF
such policy. Consequently a feeling OF jealousy
was aroused I'm such excluded sections. ana resoN III"
10 local banks which rapidly multiplied In every
direction regardless Of business demand Hence u
was that ere long the proportion OF banks NJ '"e "eS
much exceeded that at the East Tie eHec' OF sue"
potent cause soon appeared in an era OF speoul''o"
wilder and more disastrous than any known In luis
country before or since.
1t did not take the Democratic leaders long 10 open
their eyes 10 the consequences OF their reckless partisan
MANAGEMENT speculation. melted by their Hao'
ness was seen on every hand ana especially III NV
purchase Of Government lands NJ the West ana SOUTH
involving unprecedented payments. consisting mainly
OF bank The end OF such state OF thihge WIS
soon manifest. Government expenses could not iohs
he met with irredeemabe notes, even Of Pet Banks
Hence the sudden change in policy which ioho"eu'
Eoon the bills Of selected banks only We're received oN
.he Government This was bad enough causing
great Inconvenience and loss especially h the purchase
of public lands points distant from business centres
As result money changers Were located next dool
10 land Offices whose business il TO shave al
tho highest rates possible the notes OF unlisted oahhS
Az hanks listed constantly falling, parties oi'eh
found that bills all right when they left nome ha'
become d,credited when they reached the land once
For instance citizen Of Wood County, oDio' V'ei'"
,hc land Office at Lima, s,me State and, having sc
,c,od 81 tract for purchase, paid the adjoining lex
,h,,co otcep per cent premium for regulation cur
r,ncy on getting back TO the once no WIS 'o''
that the tract selected by him meantime h"u ooc''
sold 60 another party. While he WAS huiio"s
second piece the Office was closed HIS only RECOURSE
was trip TO Fort Wayne. Ind. whefe nc was SUI
,on,od IN IN additional "slave' OF per cent De
.rso ,be hills he bought at Lima had been excluded
from the Government list making total oes 70 III"
~ 10 pcr cent Another party there having SeeO''
n tract Of land and paid S32 exchange OH @s"0 !"
hills foupd his choice taken, and tnehec'uoHy oces
,c,urr ~ his money. The suspicion existed ''a' "'
,crnpnous operators tolerated about tne iu""
oree whose business II was. by COLLISION WIN '"e
clerks 10 find out what tracts were seIeeVc" ""' w
iect proposed purchasers 10 e3tortion'
The case OF General Ralph r. auckland, VINO I"
Gently died at Fremont Ohio. Is in point here. LeaV
Ing Northeastern Ohio early In 1881 for location IN ''e
then West" he took steamer at Cleveland ana stopped
over nj Toledo Here he found his Journey suddenly
ended by the fact TINT the Democratic currency w'"'
which lie had been compelled 10 supply h''hsci TN"
become worthless for travelling expenses. lhus siIu
Ali h,s only recourse was iocaton nj Toledo or some