The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1892-10-31
STATE BANKS.
An independents View of the Attitude O
Democracy on the Currency.

|
| An independents View of the Attitude OF
Democracy on the CURRENCY.
| Henry c. Lee In the New York independent. !
1t was like clap of thunder from
cloudless sky to find this question pre-
cipitated upon us when we had supposed
that burial of thirty years had erased
from the thoughts of men all memory of
those old vultures which were won't to
prey upon the community. Yet the hope
of securing Alliance votes in the South
west by the promise of unlimited sup
plies of worthless currency was too fiat
tering to be resisted and the party has
irretrievably pledged itself to this suici-
dial policy. The campaign textbook
issued by the Democratic National Com
mittee seriously argues that the taxation
of the currency of State banks is uncon-
stitutional and must be repealed, and
Democratic orators and organs are every
where endeavoring to prove that the re-
su'oi'a.ion =. 'no o'.''o oaiA syseeni 10
desirable. Inefe IS OF course, some
vague pretense that restrictions can be
imposed which will diminish the admit
"a 49, o1d c+a+o -.
GU osiis u 'io w s'o''o oanAs' o''' 'ieso
suggestions can scarce deceive even
those who make them; for it is mani
testify beyond the power of the Federal
Governments to prescribe the Terms on
oosoi nniono piioo ono 'oi mo VI
which the States might impose wise re-
strictlons, 1T is impossible to predict what
!axlty others mlghI see NJ TO allow, and
1t requires no pfophet TO predlct the
hordes OF sharpers VINO Wouid HOOK TO
Alabama OF MISSISSIPPI OF Iexas as a
held from when TO sWlndle the commu-
NIFTY. Even unoer ne riglu conui!lons
ana constant lnspecglon OF the natonal
Danks. sqch examples, as Ine Mav eiN
BANK IN Boston anu Tue Keystone bank
control OF such lnstluutons, though even
in these cases the currency holders are
saved by the PROVISIONS OF the natlonal
banking law: Inc very oDJect TOT Whlcn
the proposition was placed IN the plat,
ferm Would pc losI II all the states would
copy ana ENFORCE tne natlonal law, ana
we may De sure tnat many OF lnem
Would not. Inc LOUISIANA Lottery mas
Already given us ample warning as 10 the
injury winch single State under prof1l-
gate rule can ln1llct upon her sisters, ana
should the tax on state currency be re-
moved, we snail see. ike nlgnt-groWth
OF mushrooms, thousands OF wildcat
banks spring up IN remote and inaccessl-
Bile sections, shoWering their paper issues
on the defenseless community and SWIM
ding farmer and laborer, merchant and
artisan. In this the ignorant and poorer
classes will suffer most, but the
evil VIII be all-pervadlng and Will
most seriously a1fect all the cur
rents OF trade. My business career
commenced in 1913 and | have a
vivid recollection OF the red dog and
blue pup currency, when Bank Note Re
porter had place on the desk OF every
business man, and every payment over
the counter was a subject of scrutiny;
when no one knew what would be the
value next day OF paper in his
cash drawer when exchange bro
kerS fourished and Wilmington notes
were at discount IN Philadelphia and
Philadelphia notes IN New DIRK. The
trouble was not confined to the strictly
wildcat banks, but included the sounder
ones. have recently seen the State
bank OF Indiana quoted as a model by a
defender OF the Chicago platform; it was
Well-managed institution, and yet l
have sold its notes at 10 per cent. dis
count. 1t is idle to say that the notes of
irresponsible concerns would have but a
local circulation and would be speedily
run in for redemption and the banks
closed. Even local populations should
be protected against swindlers, especially
as the nation is made up OF local popu-
lations3 and the running in of notes for
redemption is not SO easy in fact as it is
in argument. In the old time this was a
profitable part OF the business of ex-
change brokers, and they often found it
s., y spot as ooiuniuus, ", d oanh oe-