Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-10-04
DEMOCRACY AND THE RANKS.
Ex-Controller Trenholm States the Posi-
ton of the Party.

Ex-Controller Trenholm States the Posi-
ton Of the Party.
Special Dispatch to The Evening Star.
NEW YORK. Oct. 4.-Ex-Secretary Fairchild
and ex-Controller Trenholm have sakea up the
cudgel in defense of the feature OF the demo-
cratic platform which proposes a repeal of the
10 per cent tax on state banks. The republi-
cans are making pretty sharp fight on this
feature Of the democratic platform, and the
fact that Mr.. Cleveland was silent on this sub
ject seems to have made it incumbent upon
somebody else to take up the fight in its defense.
Il do not think" said Mr.. Trenholm. di s.
cussing the matter, "tbat those who remember
Mr.. Clevelands attitude when President will
believe that he would occupy other than a
conservative and careful attitude toward the
financial interests of the country. 1t will be
remembered that there was grave doubt about
the time his administration came in:o power as
TO the ability of the treasury to maintain the
currency of the country on gold basis in the
face Of the enforced purchase and coinage of
two million ounces of silver per month.
But although there we're differences of
opinion among members of his party.
and although he was criticised by
some for the letter he wrote to members Of the
party before his Inauguration, his attitude
from first to last such that nobody
can doubt his desire to sustain honest money.
Treasurer Jordan. it will be remembered, ar
supplies Of gold. The subtreasuries paid it out
and the troubles feared were averted"
But what has this to do, Mr. Trenholm
with the present question Of state banks and
currency issued by them?''
1T shows that Mr.. Clevelands sdministra-
ton Of the finances of the country was wise and
conservative ard would not be otherwise in the
future. As to this question of removing the
tax on state bank notes, the employment of
the taxing power of the government for the
purpose Of indirectly effecting that which Con-
gress has no power to effect by direct legisla-
tfon is as dangerous and Questionable when
| employed prohibitively as when employed con-
structively.
''1f the creation Of wealth in certain hands
and sections by taxation afforded by the tariff
is to be guarded there is no reason why the
same care should not be exercised when the
power of direct taxation is resorted to by the
go sernment to foster the special interests rep
resented by national banks. From this view of
the subject it naturally follows that
the duty of the democracy to-
ward the national bank is identical
in principle with its attitude toward its vested
interests whic4 have grown up under our sys-
t m of protection. And this attitude. as l I'M
derstand it, is one of opposition to the princi-
pie which has heretofore been applied to
legislation on both subjects. united with a
thorough and serious appreciation Of the dif
ficuity Of the present situation. The at
uiudo or the democratic party toward
the national bank system is very like
its attitude toward tariff taxation. Since 1862
these banks have enjoyed the protection and
favor of the government. For over thirty years
the people of the United States have been en-
couraged to invest their capital and deposit
their money in these banks. They are today
an essential part of the living organism of our
national industry. To disturb them would be
to disarranga the whole machinery of our enor-
nous internal trade"
democracy would be q conservative one, do
your"
''Yes. No party caring for the interests Of
the people of the United States could be con-
ceived of as likely to venture upon such a dis
turbance any serious interference with the
present conditions would bring. 1t may be q
question, however, to whether the
national banks would be seriously affected by
repeal Of the tax on state bank circulation,
When the national bank act was passed, in 1868.
1t was found to be a very simple matter for the
then existing state banks to be converted into
national associations. Hence under proper
provisions Of Legislation it might be both easy
and safe for national banks to pass under state
banking systems"
"But what about details Of their currency?
Would it be acceptable and uniform in it's
character, Mr.. Trenholm"
at Is safe to assume that no measure that is
not entirely consistent with justice to vested in.
terests and which does not promote the general
welfare Of the whole country will find favor
with the responsible leaders Of the democratic
party. The country can certainly depend upon
Mr.. Cleveland's sagacity and courage to pre-
vent any hasty or unwise changes in our laws