The state chronicle., 1892-11-01
THE REPEAL OF THE STATE
BANK TAX.

IAN n 4AAs
The Hon. David A. Wells has publish.
ed reply to Gov. McKinley's campaign
speech, and the following extract from
this reply in regard to the repeal of the
State bank tax will be of interest:
attention is next asked to Mr.. Nc.
Kinley's speech at Springfield and Adams.
taking it up point by point, as reported
by the Republican, commenced and
spent much time in arraigning the demo
cratic party for advocating a repeal OF
the 10 per cent. tax on state bank circu
lation, and prophesied all manner of
direful monetary troubles in case any
such measure was adopted. It is safe,
however, to say that if presidential
election were not pending, the PROPOSE
tion to repeal would not cause ripple of
excitement on the part of the public. 1t
did not, when the measure was first in
troduced last spring by Congressman
Harter of Ohio in the House, and by
Messrs. Harris and Carlisle in the Senate.
1t attracted the attention mainly of per-
sons specially interested in banking and
finance, and was indorsed and regarded
as eminentiy worthy of considera-
ton by some of the best and
most conservative authorities on these
subjects in the country-such men as
David M. Stone, of the New York Jour-
nal Of Commerce, William B. Dana, of
the New York Financial Chronicle, Will
liam Dodsworth, editor of the New York
Commercial Bulletin, Edward Atkinson,
William c. Cornwall, cashier of the
bank of Buffalo, Charles S. Fairchild,
late secretary of the treasury and presi-
dent of the New York security and trust
company-and it would seem as if no
sensible man could acquaint himself
with the facts in the case without being
fully satisfied that the attempt on the
part of the republicans to get up a
scare" about the matter is simply ruse
to divert the attention of the public from
the tariff and force" bill issues, and
give their speakers something else to
talk about. But what are the facts7
they can he stated in comparatively few
words
The national bank currency is certain
to disappear, within time not very far
distant, by the payment and extinguish
ment Of the United States bonds on
which it is based. In 1882 it was S315..
600, 900; in September, 1891, it was
$l3l, 600, 900. What is to take its place,
and also meet the demands for more cur
rency which our rapidly increasing pop
ulation is continually creating7 Shall it
be fiat money issued by the government
with nothing substantial behind it as
material for its redemption Shall it be
certificates based on silver, which has no
stability of value and is much more like
ly to sink to bullion price of so cents
or less per ounce than it is to return to
its former gold value of 100 cents2 The
people OF the South and Southwest have
never favored the national bank currency.
They have felt that there was tendency
of 1t, and also of the greenback, to con
centrate at the great centers of trade IN
the East and Northwest, and so deprive
them of proper instrumentalities
Tor etfecting their exchange; and
that what they wanted and
must have must be some arrangement
whereby better local circulation of cur
rency should be furnished them. The
most careful students of banking and
hnance IN this country recognize there is
good deal IN these wants and desires
not only of the people of the South and
Southwest, but also of other sections of
the country; and that one great trouble
with our existing currency-greenback
ana rational bank notes-is that it is in
elastic. that is, it cannot be increased
when most wanted, or diminished when
not wanted, and by reason of this last
feature furnishes at times a most un.
healthy stimulus to speculation; good
many such men are of the opinion that
the best and perhaps the onl y practical
way OF solving the involved problems is
Is oy system OF State banks, properly
organized, with power to issue a local
currency properly guarded
The people of Canada have system Of
oank currency, not founded on govern
nents bonds, but on assets of unoues
tlonabie value, which fully subserves
their necessities, and which IN the onin.
ION OF not few is as perfect system of
paper money as has ever been called into
existence. Are the people of the United
states ready to believe on the assertion
u mere politl clans than the adoption of
lneih system OF currency which long
canadian experience has proved To h..
safe and useful will be attended with tre
mendous calamities? One third of tho
banking business of the United States is
II present conducted by State institu.
,lons-state banks. private banks trnst
companies and savings banks-and ;s
conducted safely and economically I,
s also important to recognize that a re.
oeal OF the st ate bank tax does not of il.
,eli practically alter the existing situation.
Ne whole matter remains absolutely
n control OF the federal govern.
heht. 1t can prescribe conditions, or den1
III conditions; and no states can invest
he notes Of any bank which it NAV Gro.
'te with the legal tender quality. For
nan under such circumstances to oct nm
before the people and, brandishing an old
and broken bank detector in
he1r races, assert that the democratic
'arey intends to bring back the old
wild cat and "red dog" currency Of
70 years ago is, to say the least, a reflec.
ION on the intelligence of Ne England
audience. ~ gu"
What is needed is that this question
nan be discussed intelligently and de
'ideo @ without regard to political affi,is
ions. Mr.. McKinley's position. in com
non with that of the republican party.
that 1t shall not be discussed ;ntel,;
'entiy, and shall be decided by partisan
and it is this latter policy
oove all else that makes possible the
and tolerance of wild cat
urrencles and unlimited issues of fiat,
money, and not any proposition to repeal
he FEDERAL tax on the issues of eta,o
anks." ''"'e
HE repu uolicsn-third party gideonite
candidate for Justice Of the
upreme Court says, in letter to gen
e"an IN this city, that he prefers the
'rce Dill to the present election law If
'o''n carolina MIR. Ball does not ap-
ear 10 nave forgotten the idea of force,
loculated when he was a military ;ndoe