New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-20
DEMOCRATS FOR WILDCAT BANhS'

Since Congressman Harter of Ohio. is one
Of the most conspicuous and influential Free
Traders in Congress, it was to be expected that
he would come to the front as defender OF the
Democratic financial platform. At the annual
convention of the American Bankers Associa-
ton Mr.. Harter read a paper endeavorlng to
defend the proposal to abolish the III per cent
fax on State bank issues. One might infer
from many parts of this paper that Mr.. Harte'
had no practical knowledge OF the workings
of the old State bank system, and had never
taken particular pains to inform himself about
il. His reasonings, one might fairly say, were
somewhat better adapted to political mass
meeting, or to such convocatiOn OF babes in
finance as the present House, than to gather
ing of experienced bankers.
Rejnc Democrat. Mr. Harter naturally aims
the constitutional blunderbuss at anything he
desires to demolish He regards the tax on
State bank issues as an unconstitutional eyer
else of power by the Federal Government. lie
reasons that the States used to have the right
to create banks of issue and that this right
could not be taken from them without viola
ton of the Constitution. The true question is
whether the States ever had the right, under
a legitimate Interpretation of the Constitution
to issue any kind of paper for general clrcuia-
ton to serve the uses of money. but 'he
world has somewhat Outgrown this KIND OF
Democratic objection. Since we heard the
efforts to suppress the rebellion denounced a.
unconstitutional, and discovered that IN Demo
cratic construction the Constitution was the left
wing of Lees army, practical people have paid
LITTLE attention TO Democratic views of that
instrument. And there is less cause than ever
70 treat the constitutional notions OF that parry
with respect, since 1t now comes 10 inc lronV
with the absurd declaration that KIND OF taril'
which Washington and Madison and JEFFERSON
and all the great trainers of the Constitution
annroved and upheld is nevertheless an un-
constitutional tariff.
Men IN these days will ask but one question
about the tax on State bank issues. Ihat queS-
ton is whether the power TO issue circulating
notes without limit can be safely Entrusted 70
the Legislatures of all the States. Mr. Hartcr
reasons that. in these days Of schools and news
napers and telegraphs, no bank could possibly
get its notes into CIRCULATION even In the Town
where il might be located unless 1t had a
satisfactory security behind it. Therein he
exhibits really curious ignorance OF the pro-
cesses by which such notes were in former unes
thrust into extensive circulation. lie imagines
that the school and the newspaper and the tele-
graph have put an end to the creation OF com
panies having only bogus financial backing
and existing solely for the purpose OF sw1ndlmg.
Such companies he can find in existence all
over the country at this day, and if he Is not
aware that they have remarkably large crop
of dimes every year he knows but little OF what
is going on in The world about him. The one
question Is whether the State Legislatures and
authorities can be trusted to fence around the
right of issuing circulating notes with such
conditions and guarantees that the establish
ment of banks for the purpose OF defrauding
will not be possible. Even if the State laws
were in high degree prudent and wise the
question remains whether the officials in the
different States could always be trusted to en-
force those laws ngidly and impartially Mr.
Uarter has only to look back few years TO
find records of defalcations by Democratic State
officers in an unusual number of States. He
has only to read any decent newspaper to
realize that the enforcement OF State laws III
not few of the States is at this day so I'M
perfect and so partial that great evils are per-
mtted to exist which faithful enforcement
of the laws would prevent.
This is not the worst. When bank has
once gone into operation nobody can be sure
that the same men will continue to control 1t, or
that the same integrity will be shown in its
management, as at the outset The stockhold-
ers change from week to week. The officers
NAV change whenever the control of majority
of the stock passes from one set of men to
another Any ring of spectators, having a
local real-estate boom to start or some specula-
ton in grain or in other products, may easily
get control of enough stock to do what they
please with the bank OF issue, and then unless
the State laws provide for rigid inspection by
State officials, and unless those officials. are
more faithful than many State officers have
been in times past, the bank becomes merely
a means of robbing the people. This country
has tried National currency long enough to
know its value The single fact that not a
single blhoder has ever lost dollar through
the failure OF any bank tells the whole story
When the people consent to the restoration OF
the Democratic kind of money they will be
much less wise than they have been for twenty
wears past.