Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1892-07-13
Democrats Declare for State Bank Cur


Democrats Declare for State Bank Cur
rency.
Going back to the absolute free trade
doctrine of the days of slavery, it was
entirely consistent for the national
Democratic convention to declare it
self in favor also of state bank instead
of national bank currency. The plat
form saws:
Sec. s. We recommend that the pro-
hibitOry 10 per cent. tax on state bank
issues be repealed.
The Democratic platform Justly and
properly speaks of the tax which it pro-
poses to repeal as "prohibitory." The
tax was imposed by the Republicans
not to obtain revenue, but to cut off and
prevent the issue of wildcat" and
ed-dog" currency by state banks. 1t
had the effect desired, but why do the
Democrats demand its repeal?
The law which it is proposed to re-
, peal is as follows:
Section 49, That every person, firm, as
ISOLATION other than national bank aSSOcia-
lions, and every corporation, state Dank,
or State banking ASSOCIATION, shall pay q
tax Of 10 per centum on the amount Of
their own notes used for circulation and
paid out 10y them.
sec. 30. That every such person, firm
association, corporation, state bank, or
state banking association. and also every
national banking ASSOCIATION, shall pay a
like tax of 10 per centum on the amount OF
notes OF any person, firm, association other
than the national banking association, or
Of any corporation, state bank. or state
banking ASSOCIATION, or Of any town, city,
or municipal corporation, used for circula-
ton and paid out by them.
Of course, the repeal Of the foregoing
as now demanded by the Democratic
party would lead to the practical destruc-
ton Of the national bank currency. All
lowed to pledge state and municipal
stocks drawing from to 10 per cent, for
circulation, the banks would quickly sur
render the national bonds, which draw
so much less interest. The temptation
would be strong for the banks TO reor-
ganize as state institutions, and the gain
TO them, as measured simply by the rate
Of interest they would receive, would be
very great.
Of far greater consequence would be
the effect Of the proposed change in
vestlng irresponsible state pawnshop
banks with power to expand or contract
the currency at will, and without let or
check from the federal government.
This is Democratic doctrine, of course
that the money-issuing function should
be taken away from the control Of the
government and put in the irres ponsi-
bic hands of private capital.
' There is q great deal in this for the
people to think about. The doctrine
advanced and maintained by the r.
publicans has been that the money
issuing function is an attribute OF SOW
ereignty, and hence belongs to the pa-
tional government. According to the
Republicans, the question of the vol
ume OF currency should never be turn
ed over to private capital to be manipu-
lated by it with view to its own gain,
but should be subject to national con-
troll in the interest of national welfare.
This is one of the vital questions on
which the Republicans and Democrats
join square issue.
The Rejected Plank of the Democratic
Platform.
The extraordinary action of the Chi
cago convention in repudiating the
straddling tariff plank reported by the
committee and adopting in it's stead an
out and out free trade declaration was
intended to make this question the
great one OF the campaign. and to an
| nounce the free trade doctrine Of the
South with greater emphasis than at
any time in the past thirty years.
The Democratic party is to be judged
not only by the free trade doctrine 1t
espoused but by the protectioniet prin-
ciples it disowned. 1t would not toler-
ate the idea of the protection Of labor
in any way. The people must not lose
sight of the doctrines which the con-
vention rejected
| ]. In making reduction of taxes it is
not proposed to inJure any domestic indus
try, but rather to promote their healthy
! growth.
Honesty required that this should be