The times. [volume] (Richmond, Va.) 1890-1903, 1892-10-09
DEMOCRACY AND THE BANKS.
Ex-Comptroller Trenholm States the Posi-
ton Of the Party.

EI-Comptroller Trenholm States the POSI-
ton ofthe Party.
A New York speciel to the Evening
Star says:
Ex-Secrctary Fairchild and ex-COntrol-
Ter trenholm have taken up the cudgel
in defense of the feature Of the Demo
cratic platform which proposes repeal
of the 10 Ter cent. tax on State banks
The Republicans are making 4 pretty
sharp hight on this feature of the Demo
CT; tic platform. and the fact that Mr.
Cleveland was silent on this subject seems
to have made it incumbent upon some
body else to take up the fight in its de-
fcnse.
Il do not think" said Mr.. Trenholm,
discussing the matter. " that those who
remember Mr. Cleveland's attitude when
President will believe that he would
occupy other than a conservative and
careful attitude toward the fins ncial IN
terests of the country. II will be remem-
bered that there was Il grave doubt about
the time his administration came INTO
power as TO the ability Of the treasury
to maintain the currency Of the country
on a gold basis in the face Of the cltorced
purchase and courage of two million
ounces of silver per month. But although
there were differences of opinion among
members Of his party. and although ne
was criticised by some for tho letter he
wrote 80 N mbers of the party before his
Inauguration. his attitude from hrst 10
last was such that nobody can doubt ms
desire to sustain honest money. Ireasur-
or Jordan. il viii be remembered ar
ranged with the New York banks for re-
newed supplies of gold. The sub-trea-
suries paid it out and the troubles feared
were averted'
But what has this to do. Mr.. Tren-
holm. with the present question OF state
banks and currency issued by themE
1T shows that Mr. Clcyelands admin
istration of the finances of the country
was wise and conservative and would
not be otherwise in the future. As TO
this question OF removing the TAX on
State bank notes. the employment Oh the
taxing power of the Government TOR the
purpOse Of Indirectly eifecting that when
Congress has no power to effect by direct
legislation is as dangerous and question:
able when employed prohibitlVeiy as
when employed constructyely.
IF the creation Of wealth IN certain
hands and sections by taxation afforded
by the tariff is to be guarded there Is no
reason why the same care should hot oe
exercised when the power of direct TAXA
ton is rcsOrted TO by the GOvernment 10
foster the special interests represented hy
national banks. From this view OF the
subject il naturally follows that the duty
of the Democracy toward the national
bank is identical in principle with. ms
attitude toward It's vested interests Whlch
have grown up under orr system ol pro-
lection. And this attitude. rs | under
stand il. is one of opposition 10 the prih-
chile which has heretofore been apphcI
10 legislation on both subjects. united
with a thorough and serious appreciation
of the difficulty of the present situation.
The attitude Ol the Democratic party To-
ward the national bank system IS very
like its attitude toward tariff taxation.
Since 1862 these banks have enjoyed the
protection and favor OF the Government.
For every thirty years the people OF the
United States have been encouraged TO
invest their capital and deposit their
money in these banks. They are to-day
an essential part of the living orgam5n'
Of our national industry. To disturb
them would be to disarrange the whole
machinery of our enormous internal
trade.
Then you think that the attitude Of
the Democracy would be conservative
one. DO you!
YES. No party caring for the inter
could be conceived of rs likely to venture
upon such a disturbance rs any serious
Interference with the present conditions
would bring. 1t may be q question. how
ever. as to whether the national banks
would be seriously affected by Il repeal
of the tax on State bank circulation
When the national bank act was passed
in 1863 it was found to be very SIM
pie matter for the then existing State
banks to be converted into national as
sociations Hence under proper proyis-
ions of legislation it might be both easy
and safe for national banks to pass
under Stlte banking systems.
But what about details of their cur
renry? Would it be- acceptable and Uni
form in its character. Mr. Trenholm
1T is safe to assume that mo- measure
that Is not entirely consistent with JUS
tice to vested interests. and which does
not promote the general welfare Of The
whole country. will find favor with the
responsible leaders OF the Democratic
party. The country can certainly de-
pend upon Mr. Clevcland's sagacity and
courage to prevent any hasty or urWlse
changes in Our laws relating to banks