Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1892-10-05
The Wildcat Banking System.

In considering the proposed repeal
by the Democrats of the 10 per cent.
tax on state bank issues, we are not
limited to the possibilities of what
might happen, but can look back upon
a record of what actually did trans
pire under the order OF things it is de-
signed to inaugurate. Last week we
reprinted from The REPUBLICAN of
June %, 1861, an account of this
city's experience in the panic caused
by bank failures at the time, when
merchants refused to sell goods ex-
cept for coin, and the banks declined
to receive deposits; a condition of
things lasting for three or four days.
But for months prior thereto, and
afterwards, the bills of many of the
banks In the country were at a dis
count of from 10 to so per cent, and
the greatest feeling of insecurity pre-
vailed. A person going to bed at
night was liable to wake up the next
morning and find that the currency
in his pocket had greatly deprecated
in value # not become entirely worth
less. Farmers were victimized to such
an extent that they were compelled
to protect themselves against loss by
refusing to sell their produce for the
shin-plasters then in use. AS will be
seen by the following extract from
The REPUBLICAN of June 7, 1861,
public meetings were held with view
to united action:
Wisconsin currency doesn't seem to
be in very good odor with the people
just now, which, in view of the heavy
losses that have recently been sus-
tanned on it, is not a matter of any
great surprise. We notice a call for
a meeting of the farmers of Dodge
county, at Juneau, on the 18th inst,
to take into consideration the pro-
priety of refusing to sell their produce
for anything but coin Meetings OF "A
similar character have recently been
held in Dane, Rock, Grant and other
counties, and theinferenceis fair that
the same feeling will extend to other
localities, and such conventions as
we speak of, become general through
out the state.
The laboring man, also, in fact,
everybody who handled money suf-
fered more or less, for he could not
touch the trash then circulating with
out sustaining loss to a certain ex-
tent, any more than he could handle
pitch without being defiled. The
proposition to return to a system of
banking in which such calamitles are
possible is astonishing and almost
unworthy of belief. But that is what
the Democratic platform ahirms, and
Cleveland in his letter of acceptance
does not repudiate it. By remaining
silent on the subject he consents.
Southern Democratic papers advo-
cate it, while here at the North Dem
ocrats speak lightly of it, feeling Sc
cure against such legislation. Sena-
tor Pugh, of Alabama, has recently
written a letter In favor of the scheme,
saying sit will do more than any other
legislation to remove the inequalities
and satisfy the demand for an in
crease of our circulation" Congress
man Harter, of Ohio, and Demo
craft, in an address before the Amer
lean Bankers association few days
ago, defended the wildcat banking
idea and claimed the government has
no fright to prohibit state banks from
issuing any kind of currency they
please, IN accordance with the old
Democratic idea of estate Rights
Furthermore, bill to repeal the 10
per cent. tax was introduced in con-
gress the last session, House bill No.
5000, and was voted on June 6,
1892, receiving "a votes, all Demo-
Gratis, against LILO nays, SO that the
Democratic party is fully committed
to the measure. Congressman Bar
wig, standing with both feet squarely
upon the Chicago platform, cannot
dodge the question, and his constitu-
ents should not permit him to. A
majority of them want money such
as we have now-good at all times
and under all circumstances. They
know that although a national bank
may fail, there is no possible loss to
the bill holder. They are not likely
80 vote to put in power a party which
will throw away safe banking sys-
tenn in exchange for rotten one.
A Strange Freak.