The times. [volume] (Richmond, Va.) 1890-1903, 1892-08-24
STATE BANKS OF ISSUE.

tial campaign.
Whitelaw Reid made two speeches IN Hi
nois last week and in each this plank re-
ceived his especial attention. He treated
the matter from the usual Republican stand
point. which views ali movements aimed nj
discriminating the people from the CALLING
woke that Republican centrslizng legislation
fixes upon them as an effort TO interfere
with the legitimate functions of the Govern
ment. Democrats must defend the Demo-
cratic platform for the two very good rea-
sons. that il is not only our platform, but 1t
is right
Whitelaw Reid and all such as he oppose
this and all Democratic doctrine because it
believes in the largest possible liberty to
the citizen and the smallest possible func-
ton for government He and they believe
in paternal government which is to take
care of the citizen and exist always as
prop and support on which he may lean.
The one theory creates population OF which
the chief characteristic is self-reliance and
robust manliuess. the other creates popu-
lation of protected monopolists idle, lazy,
pampered pensioners and wesklings always
on the hunt for support.
Before the war any one that was in a
mind to do 30 issued currency This is
q natural right of man of which it takes an
arbitrary act Of power to deprive him. And
why should it not be so? Currency is not
money. There is but one money. metallic
coin. Currency Is nothing but q paper
promise to pay money on demand. Why
should not the citizen have the right to put
out as many of these as he desires to put
out and can get any one to take from himy
1t seems strange abridgment of the rights
Of citizen TO deny him this one. It's denial
arose thus: During the war in order
that the Government might circulate
all the financial ability of the nation at
Washington for the purposes Of the war,
Congress forbade any banks TO issue cur
rency except the National Banks. Now
Congress had no power under the Constitu-
ton 70 forbid State Banks to issue cur
rency. but il had right TO tax all property
in the United States to raise revenue for the
Government. IT, therefore. imposed tax
on the currency issued by the State Banks
that was so heavy the State Banks could
not afford to issue any. and in this way it
stopped them from issuing currency.
1t is plain that this was an abuse by Con-
eress of its powers. only to be justified. If it
can be justified at all. by the stres and
necessities of war. 1t was accomplishing q
,b;r, ,rb;oh 49, Consultation farboda IL 70
accomplish by pretending to do another
lawful thing that it was not in fact doing.
Now everything that the Democratic party
asks is that this wrongful act of Congress
shall be repealed and the people shall have
restored TO them that natural right which
they had before it was passed. This is the
whole case. No one has the slightest inten-
ton to interfere with the National Bank
system.
The Democratic party proposes that it
shall remain just what it is. with full au-
thority to issue all the currency it desires to
issue. 1t simply asks that State Banks snail |
have the same privilege, if they choose to
exercise it and can get their State legisa-
lures to authorize it, and can get any one to |
trade in their notes. The Democratic party |
has no idea of abridgine the currency in any |
manner whatever. 1t proposes to have il |
just as it is and to add 20 it what State |
Banks can get the public TO take and use. |
The cry of the free silver men IS really |
cry for more money. This is the way to get |
that increase of money. Repeal this wrong
full act Of Congress imposing a tax on the
issue of State Banks and we can then have
as much currency as We choose to issue and
can get people to take.
We will now briefly notice the arguments
that are made against State Bank issues. 1t is
sal they will necessarily be at discount and |
the loss produced by this will fall upon the ig-
norant poor. and weak and accrue to the
benefit of the sharp broker and Bank note
shaver. This argument assumes that the
notes of State Banks must necessarially be
at discount. which we can by no means
concede. We submit that however they
might start, they would eventually become.
through the natural laws of trade aud bus
mess. upon a par with the national currency.
As we have already remarked. currency is
not money. but promise to pay money.
Money is not abundant enough to serve as
the medium for ell exchanges. Besides it
is often Gin ninety transactions out of every
hundred) more convenient to effect ex-
changes by transferring credit rather than
by delivering the actual medium of exchange.
Hence checks and drafts, which are cur
rency, come to play much the most impor-
tAnt part in effecting exchanges. But
checks and drafts and the notes of indivi-
duals only serve the purposes of currency
for executing exchanges where the parties
are personally known TO each other and
of transactions take place be-
tween parties who are strangers to each
other and multtudes of other transactions
take place between parties who, though not
strangers to each other, have no confidence
n the financial ability and many times IN
The integrity of each other.
For such transactions. as money is not
always at hand, there must be what We call
to act as substitute for money.
Now there are two qualities absolutely in
ilspensable to this currency truly perform
ne the part of currency. First it must
certainly and absolutely be 80 backed that
IN individual IN possession of any of it can
without doubt receive from its issues coin
when be demands it; and second. it must
lave reputation that will satisfy the pub