New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-13
QUESTION DEMOCRATS DODGE.

4 QUESTION DEMOCRATS DODGE
IT is not strange that our friends the enemy
feel anxious to get out of the way the issue
regarding the revival of the State bank system.
| They affect to treat with indifference the per-
tincnt remarks of President Harrison and ex-
Secretary Blaine on this subject, and constantly
, assume that the National platform, demanding
the repeal of the 10 per cent tax on State BANK
issues, has no meaning and is not to be taken
as an indication of the real purpose OF the
paIty. But President llarriSons criticism Will
not be forgotten. If the party meant what 1t
said in tho formal demand embodied in the
platform. il intends t. revive the state bank
system whenever it has power to do so. II 1t
does not mean what it said in its platform, 1t
deserves the utmost cenSure for treating grave
public question with insnccrity.
Some Democrats affirm that the repeal OF the
tax on State bank issues would OF itself have no
harmful effect. They say that snch banks could
not he organized in different States without
scparatc legislation in each, and that the party
can be trusted. either to prevent the passage
of authorizing laws or to cmbody in them such
provisions for the safety of bill holders and the
people generally that the organization OF such
only way 10 Judge of the action of party IN
the future is from its conduct in the past Years
ago. when the Democratic party had control
of Legislatures in most OF the states, 1t showed
quite clearly what its ideas were III regard to
the protection of the people in banking laws
Everybody who has recollection Of that UNI
happy period remembers only too well no"
worthless for public protection were the laws
enacted by the Democrats in most of the states
where they had the power. Even these who
we're not then familiar with the laws OF the
different States, and whose knowledge was
wholly derived from handling the bills i'll circu-
aion. came to understand right well that II
was not safe for them to touch the blllS OF any
bank in some Of the States. and il did not take
them long to recognize the fact that those states
were usually undc3 Democratic control.
But this is not a que >tlon OF party fidelity in
the discharge of a necessary duty. The qucS-
ton is whether the Legislatures Of many differ
ent States. whether controlled by one party or
bv another ought TO be mtris:od with the
power to make circulating medium. affecting
the prosperity of the people Of all the States
alikc. For the notes issued by any one State
were never confined in their circulation to the
they should be 50 confined. On the contrary,
the profit, Of the STATE banking institutions
depended largely upon their ability to put notes
into circulation in distant states so that they
would return TO the banks for redemption only
after long delay. Thus It came 20 pass that
the States which had the worst banking sys-
tens. and in which failures OF banks worc most
numerous, were precisely those whose bank
bills were most frequently circulated in other
far-oT states. and about which the wage
Garncrs and the small retail dealers found most
trouble. II was not possible for them 10 keep
track of the news regarding the many local
banks in such States, and they could never
know whether bill offered them was good or
bad and yet il was n source OF constant en-
balraSsmcnt. and often Of actual loss, if they
hcsitatcd 10 accept the kind Of money rendered
them in payment.
The Republican party maintains that the
National bank system. uniform in character and
in safety for all the States, and so protected by
provisions Of National law that no holder OF a
bank bill ever has lost or ever can lose any
thing by the failure Of that bank, is infinitely
more just, and for the people Of the whole
country wiser and better, than Il system which
leaves ID inc LEGISLATURES VI man! uiH'''i"
states the power to authorize such bank issues
as each may please. Thcre is no longer, under
the National banking system, the constant risk
Of loss through holding bills Of broken banks.
There is no longer the constant tax imposed
upon every dealer, by reason of tho high rate
Of exchange charged on bills of banks i'll other
States. The cost OF these features OF the state
banking system to the people Of this country
cannot be estimated though il was the juJg
mcnt of most experienced and competent OBJ
servers many years ago that the people lost
every year u sum greater than 3 per cent Of
the entire state bank circulation. II in place
of n thousand millions Of National currency,
without dollar Of loss, there were now similar
losses on like amount Of State bank circula-
ton, the tax upon the people of the United
States would exceed $50. 5000 yearly, to
say nothing of the incalculablo inconvenience
and constant risk in all commercial transac-
tons.
IN AGILE REFORMER.