The record-union., 1892-10-19
STUMP P-TAIL"
Currency, and What the Democracy
Demands"
Red-Dog, shin-Plaster. Fluctuatinr,
Bank Issues-Views Concern
ing Them.
[Cincinnati CommercioI Gazette. !

One Of the most dangerous propositions
Of the Democratic party, as formulated
under its National platform, was the abo-
lition of the ten per cent. tax on State
bank issues. 1t had but one meaning,
which was the revival Of a currency au-
thorized by States.
In effect, it was TO go back thirty years
and bring into existence the ''wildcat'
currency which was wiped out and pro-
hibited by the Act OF Congress which es-
tablished national banks.
Mr. Cleveland, in his letter of accept
ance. did not dwell upon that plank in
the platform upon which he assumes to
stand. He referred to it very indirectly
by saying that all paper currency, wheth-
er National or ''State,' should be sound.
He evaded the responsibility of antago-
nizing that dangerous proposition. Yet
the proposition is a Democratic one, and
one 10 which the party is pledged in its
rational platform, to the extent Of repeal-
ing the law which imposes a tax Of ten
per cent. on State bank issues.
The question arises. it MIR. Cleveland
should be elected President OF the United
states, and the Democrats should carry
congress and pass law repeating that
tax, would MI. Cleveland veto it? Could
he do so without repudiating his party?
Perhaps ne would repudi&te his party.
Who knows? But, Il Mir. Harrison should
be elected President, whether Republi-
cans or Democrats carry Congress, we
know perfectly we'll that he would veto
an Act repeating the tax on State banks.
Upon this subject he has given out his
views clearly and emphatically III his let
ter Of acceptance.
There need be no discussion, therefore,
f.t -lrrtrf l.
returned TO the White House. People who
are called upon 10 vote in November
should not overlook this, than which
there IS no more dangerous proposition
in the whole political programme.
An immense proportion OF the voters
OF the present day have become voters
and citizens since the wildcat or reg
dog'' currency was wiped out OF exist
ence- Herein Is danger, rs they do not
know the meaning of 1t. Such voters
need to be educated upon this point.
They forget iii they ever knew that
their ioreiathers carried paper currency
in their pockets which suddenly huctu-
ated in value and imposed immense
losses upon the people who had to accept
such currency in return for their wages
or the product of their labor.
Since the abolition Of the so-calIed State
banks, or banks organized under State
laws, no man has lost dollar by reason
VI Li4t ldlAt4lG VI Il IldllODdl Dduk. II Is
impossible IOr any loss 10 occur in that
direction, for the reason that the Govern
menJ IS responsible for every dollar,
whether greenbacks or national bank
notes.
The holder Of such notes is not inter-
ested in the failure OF a national bank.
Such banks have failed, but the paper is
precisely as good after such suspension
as before. This is a question to be con
SidCr9d by the people.
Rochester Democrat and ChronicleI
The advocates of State bank currency
claim that under a system as prevailed III
this State, and upon which the national
bank system was modelled, the currency
issues were perfectly safe and would par
take in no particular Of the characteristics
OF wildcat currency. 1t is true that
New Ork possessed the best system
which prevailed in the days OF State bank
issues, but ii is not true that that system
prevented frauds or loss to bill holders.
The banks were required in this State
to deposit securities with the bank de-
partment to provide against failure. This
measure proved Ineffective, and it was
Suppanted by new requirement that
banks should deposit with the Controller
l nIted states or State bonds, or mort
cages on real estate, equal to the full
amount OF currency issued. This would
seem to bG ample security for bill hold
ers, but it did not prove to be so. and
enormous losses fell upon the people be-
cause of bank failures, to say nothing of
the equally great loss resulting from the
fact that the issues OF but few banks
passed at par at any distance from home,
and fewer still when the notes went be-
yond the boundaries of the state.
The country has had all the experience
with the stUmp-tail currency, which a
man could not safely accept without first
consulting his bank reporter, or keep
over night lest the bank fail, and the
Democratic proposition to revive such
issues awakens the same opposition that
all Democratic financial schemes receive
from the friends of honest money.