The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-10-17
THE CURRENCY QUESTION.
Destruction Of the Present System Clearly In.
wolves a Return to the Free Banks.

To the Editor Of the Indianapolis Journal:
The attempt of the Sentinel and the
Democratic speakers of this State 10 hedge
on the eighth plank of the national Demo-
cratic platform, which declares in favor Of
the repeal of the temper. cent. tax on State
bank Issues of currency, by disclaiming any
intention of reviving free banking and
wildcat currency, by claiming that they
are in favor of q State bank only. is as
amusing as 1t is absurd, and entities them
Ito take the cake' either for insincerity or
ignorance. or both. They know, or ought
to know. that under our present Constitu-
tion, only two kinds of banks of issue are
possible. and that q State bank is not one
of them. Section 2. Article IL. of our pres
emit Constitution is as follows:
Sec. .. No banks shall be established other
wise than under q general banking law, except
as provided In the fourth section or this article.
Section 8, Article IL. Is as follows:
Sec. 3. II the General Assembly shall enact q
general banking law such law shall provide for
the registry and countersigning. by an officer OF
State, or al paper credit designed 10 be circu-
lated as money; and ample collateral security,
readily convertible into specie, for tue redemp
ton OF the same In gold or silver, shall be re-
CURED, which collateral security shall be undei
the control OF the proper officer OF State.
This secJion provides for free banking
and securing the bill holders by depositinQ
security with the officers OF State, while
Section 4 of the same article says:
Sec; A. The GeseraI Assembly may also CHAR
ter q bank with branches without collateral So
curity, as required III the preceding section.
This provides for forming n bank with
branches without any security for theif
currency. To provide effectually against
any State bank being formed under on.
present Constitution Section IL OF the same
article provides as follows:
Section II. The State shall not be a stock
holder in any bank. after tue expiration OF tho
present charter; nor shall the credit of the state
ever be given or loaned In aid or any person or
corporations; nor shall the State hereafter become
q stockholder in any cooperation or association.
The Constitution OF 1916 prohibited free
banking. but provided for a State bank
with branches. to include two banks then
existing named therein. On the 18th OF
January. 1884, the General Assembly Of
this State chartered a State bank with
branches, which were increased by subse-
quent enactments, and authorized the
State to borrow Sl,S00.0O0 TO take stock in
the bank. and 1t was probably this stock
that was referred TO in Section Il above
quoted.
After the adoption of our present Consti-
tuition the General Assembly passed n gen.
eral banking law as authorized by Section
3. and under it free banks were spawned
all over this State. and the country was
flooded with wildcat" currency, which
aided in bringing on and aggravated the
disasters of the panic of 1857. and were
finally driven out of existence by the ten.
percent. tax and the stress of war.
Tho Democrats do well TO disclaim any
intention of reviving the free banks OF
this State. but if not a free bank. what
theni l have already shown that a State
bank in which the credit of the State
could be pledged to secure the currency 10
impossible under our present Constitution,
and II free banks are not to he allowed
their only choice would be to charter q
bank with branches under Section 4. above
quoted. under which no collateral security
is given the holder of the currency. Such
a bank would be q monopoly of the worst
kind-snd all good Democrats hate monop.
olies-for 1t would grant special privileges
of the weightiest kind without pledging
anything but their promise to pay to secure
the currency they might issue. and
such a bank would food the country
| with q cross between wildcat" and red
| dog currency of the worst kind that ever
disgraced q country under the sanction Of
law. The attempt of the Democrats to
cloak their designs on the best currency
that ever blessed any country by pretend
ing that they will supply. Its place by q
State bank currency as good as gold is un-
masked when IL Is seen that such banks
cannot be formed; and they either knew IL
ana intended to cheat the people by PROM
Using an impossibiiity or they were ignor-
ant of the Constitution, of which they
claim to he the guardians.
1t would seem that the Democratic party
of this State have undergone an entire
change of heart on the currency question
within q few years. for on the Goth of JAM
nary, 1878, In State convention assembled,
they adopted the folio wing plank In their
PLATFORM:
That the right 10 issue paper money, as well az
coin, is the exclusive prerogatiye of the govern
ment. and such money should he issued in such
amounts as the sound business interests OF the
country may from time to time require.
JOSEPH A Woodruff.
ANGOLA, Ind, Oct. 15.