The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-11-26
wildcat Money.


II any person who is scared up on the
matter of wildcat money has any doubt
of the value of state bank money, and has
five-dollar note of the old Bank of West
minister, let him take it to the Union
National Bank Of Westminster and he can
have it redeemed, not in the "souud Re
publican silver doller with sixty cents worth
of silver in it, but in gold if he prefers it,
good the world over.
1t may be news to some Of the recent
stars in the financial heavens to hear thai
the present national bank system was mod
eled after the state banking system of New
York And it would be interesting to the
people if these stars would explain what
will be the basis of tue circulation Of ma
tional banks when the public debt is paid;
or do they propose, by extravaganza in
expenditure, to continue a public debt in
order that national banks may survive?
There are today state banks in many
states. They are banks Of discount and
deposit, with as good financial standing as
national banks. In New York alone there
are 1872 of them, with deposits amounting
to over 5000 ,0OO,0O0, paid up capital
stock OF over $50 900, 900, and with loans
and discounts of about 500, 000,0 900. The
confidence of the people, in these institutions
is well exhibited by the deposits Of $500
600, 900, and it is not likely they would
desstoy this confidence by issuing wild
cat money
The fnanciers who shudder at the
thought of wild-c.tt money, let their fears
run away with them They know that
two-thirdls Of the security for the hundreds
of millions Of insurance ON life and property
are not government bonds These would
not form basis for one-tenth Of the secu-
rty required Insurance companies buy
and hold state, municipal, railroad and
water bonds Would not these form secure
basis for state bank notes
There Is not so much difference today
between state and national banks. except
that an unjust tax of ter per cent. ON state
bank circulation prevents state banks from
issuing notes. while the tax on national
bank circulation is but one per cent The
state bank is wholly a bank Of discount
and deposit; the national bank is not much
else. The oldest national bank in West
minister has circulation of only about
So 900. Should it fail the holders are
protected by government bonds. The
stockholders are bound for double the
amount of stock they hold. But suppose
the deposits should reach three times the
amount Of the stock, what security have
depositors for the s100,o0o excess over
liability None at ALL except that national
banks are examined occasionally by govern
ment examiners Could not states appoint
examiners as well as the government. and
would they not be just as competent and
honest? National banks have failed and
national bank examiners have proven dis
honest and incompetent.
There is large amount of faith in the
banking business, state and national One
can be made as safe as the other The
Democratic party has declared for repeal
of the tax on State bank circulation be
cause it is Unconstitutional and unjust, be
cause the payment of the national debt is
reducing the circulating medium and
making stringent the money market
because the money power is too centralize d,
etc.