New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-03

The Democratic National platform, read at Chi
cago, seemed, except in few spots. mass Of hollow
patitudes. Examined more closely, however It is
seen to contain recommendations which, II carried
into effect, would work widespread disaster TO the
business interests of the country. No doctrine which
breaches IS heietica than that concerning the
Issue of notes by State banks. on this point the
platform says
I'VE recommend that the prohbltory 10 per cent
tax on State banks issues be repealed
The enormous hndrance that the repeal Of the
tax would cause to the transaction Of business Will
be appreciated as the exact nature of the
proposal is understood. The Democrats simply wish
TO return TO the discredited old system of allowing
State banks to issue currency Fortunately the reason
Ing of fnsncierS need not be wholly depended on
for arguments against this pemicious system. The
experience OF thousands of still living has taught
them how utterly bad the plan of having the
currency made up in part Of deprecated medium.
The worst of 1t that that medium was not uni
fornly below par One bill might be worth 30 per
cent of its value another worth little nothing
STEP TOWARD BARBARISM.
The return 10 State bank issues would be step
oward barbarsm II Is difficult 10 how even
The Democratic party with all It's bad ideas. could
give official utterance 10 principle opposed TO
all cOmmOn-sense and reason. All business would
be hampered by the reintroduotjon of The polyglot
currency, and .worlAngmen would be the worst
Inconvenience and loss when the system in vogue
before. An employer would pay his in the
currency issued by banks all the country. The
empoyes were therefore forced to exchange these
notes for money that was not Deprecated They
thus lost percentage Of their wages each week.
Those who did benefit by the decentralization OF
the currency the money brokers. who
,Acrra.rscd in Oils city Ly the hundred. They
would buy these bank notes and sell them to
employers of labor AT advance Then the can
blowers would unload the stuff on their men when
,ayday came The New-York banks accepted at par
only the issue OF Institutions in this city. those
about whose solvency they knew.
The waste OF time and money that these notes
entailed was enormous. IN the first place each
bin had to be examined and the standing Of the
issuing bank learned before the rate OF discount
could be determined. Then some Of the banks failed
and all the holders of It's notes would suffer loss
There was every encouTa cement TO Western banks 10
food the country with their notes. and thus to gnin
the use OF lot OF money grauitously. WILDCAT"
Institutions spnng up all and poured forth bills
when there no bullion TO speak Of behind Them
Another point was that the bills varied in Sze and
II was inconvenient to handle them. CONTRIBUTING
was also stimulated. for 1t dincult TO detect
bad note when the design on il unfamiliar
1t IS the OPTION of sound bankers that return TO
the old State bsn-noe system would be equally as dan
gerous to the financial stability Of the country as the
ardly one person in thousand examines the bill wMci
he receives in payment goods for wages The PEG
pie know that for every note issued either by the Nd
tlonal banks the National Government Its iuli lace
value In coin be obtained at any time ut any Ileu
States SubTrcasury in the country. Inc bahR DIS
in circulation not scrutinized TO learn "ha'
bank has issued them but under the old system under
which the state banks issued paper money, nearly
every business man and especially those who were
compelled TO travel much carried with them BOOK
which showed the standing Of the various state banks
OF the country. Then when state bank notes weIr
received In payment FOR anything this guide had 10 be
brought into find ont whether not the notes
were of any value ALL whether the banks by
which they had been issued reputable institutions
In some States the bank notes issued by
other States not accepted In payment Of oblga-
lions of SORT and one who was unfortunate
enough to find himself in state where his money
was not gOod compelled TO look UP broker and
have his money discounted at usuriOus rates. There
Is hardly banker In the State who wOnd not oppose
return 10 this system. because 1t would create 50
much uncertainty and confusion, besides afcrdlng an
Incentive to wildcat banking Of the most dangerous
sort.
Henry Clews the well known banker in discussing
the proposition to return TO the system OF banknoes
as issued BY the state banks. said yesterday Il do
not think that the business Of the counry Will
care TO return 10 that system. Now money is worth
the same in every State in the country and much
Certainty and confusion would follow unlimited IS
suance OF bills by the State banks
Postmaster Cornelius Van Colt said that he could
hardly under -tand how large party cOud advocate
so suicidal policy that OF returning 10 State
tank issues. Business men," he went on. "would
all be opposed 10 such thing. The best currency
Is that which does its work without attracting
attention 10 Itself Whenever the money used
interreres With the carrying on OF business. Is not
a perfect medium. These state bank notes would be
"a constant hndrancc 10 trade" ~
F. l.. LFLAND's OPPOSITION.
Francis L. Leland. president Of the New York
County Bank, FOurteenthst. and Eghthave. had re-
Gently returned from Europe, where he has spent a
great deal Of time studying the fnVnces Of different
countries He said You can say that am opposed
to it, and think that all the bankers Of the city are;
thcy are so far a. my observation goes. and have
talked with a number Of them about it.'
"Wcre these bankers al Republicans, Or some OF
be Democrats ?" asked the reporter Of The rribnuc
81 am sure don't know about that" was the. re
ply q never talked any politics TO them; II Is not
d question Of politics, il is ony matter OF common
sense The proposition 10 bring the state banks. with
all their attendant mseIies and disasters INTO ex-
iu,crce again 4, the heiehtb Of Insanity. DO not
go, ho,y some persons can favor such Wild and per
melons plon In nv opinion II will cripple and seri
Uusly inlur all the business interests OF the country
first to feel 1t they will suffer ssvercN 'i' t
viciou; o. ideas Is % mnocv and and SOUND
A
National banking should and will. think oppose ms
wildcat measure As the president OF one OF ,l'e
hi. plan Of rcsurlccng the State banks as strongly as
/ think 1t should be denounced have no ie"ro , %
think wise 10 issue and would almost say That 100
much could be issued from that source i"i tnt
credit OF this Government i phenomenal ana nmost
without limit The sound financial policy Oh ulr
United States when compared with the kingdoms OF
Europe which with "a single exception are t"i'cr,h.
on the brink Of bankruptcy, Is convincing PROOF Una,
well enough should be let alone Just think OF tnc
old wildcat currency and the trouble and comPhc'
tons which bankers used to have wears ago EYER
little merchant then had 10 be proVdcd WIN "
.DctectoY little book which described TIC almost
numbcrc-~ issues OF different BANKS Ana wlci y
mon tr. yelled far west Buffalo 70 OF New nurh
civ money was worth only about "a there val
Street don't want TO g. through those times again ;u
! cannot imagine any business man VINO "ouiu 40
day there Is only one dollar In the United >thUs anu
DAT Is worth 100 cents In ans place H. The co'hITl
Why certainly the state banks would spring up aino,
LIZ L. faLl ton