Omaha daily bee., 1896-05-01
AN ADEQUATE BANKING CURRENCY

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The Massachusetts democratic plat
form declares in favor of an adequate
medium of exchange in all sections of
our country by means of "an elastic
banking currency. subject to such gov
ernment control as shall insure uniform
ity and redemption in standard coin on
demand" 1t is suggested that this may
prove a basis of agreement between he
southern and eastern delegates at Chi
Cago. 1t is said that the south needs
more currency and that if it could OBJ
tain Il supply of bank currency adequate
to its needs that section would not be
so anxious for the free coinage of silver.
The last democratic national platform
recommended. at the inStigatiOn of the
southern delegates, the repeal of the 10
per cent tax on state bank issues. The
question of repeating this tax was pre-
sented to the last congress and received
extended consideration and discussion.
A large majority of the democrats were
in favor of repeal. but they were di-
vided as to whether it should be condi-
tional or unconditional. The northern
representatives, with Il few exceptions.
insisted that if the tax We're repealed it
should be with the condition that all
banks issuing notes should be subject
to n measure of government control
and supervision. They refused to sup
to issue currency subject only to such
regulations and restrictions as the states
might provide. thus inviting the danger
of a return to the wildcat currency with
which the country was flooded before
the 10 per cent tax was imposed on such
issues. The southern representatives,
on the other hand, demanded the uncon-
ditional repeal of the tax. They did
this on the ground that congress had
no constitutional authority to impose
such a tax. Other reasons for repeal
were urged, but the one chiefly relied
upon by the southern advocates of re-
peal was the uncOnStitutionality of the
tax. Holding this view they would ac-
cept no conditions and the northern
democrats being equally determined not
to open the way for Il restoration of the
old state bank currency system all
efforts to repeal the tax failed.
There is no reason to believe that the
democrats of the two sections are any
more likely to get together On this QueS-
ton the present year than they were
two years ago. The e%nunciation of the
Massachusetts democrats may be ac-
cepted as voicing the sentiment of the
eastern democracy. 1t demands condi-
tons which the party in the south be
lieves to be unwarranted and essen
TALLY wrong in principle if not uncon-
stitutional. Their position has been,
and there is no reason to believe they
have changed it, that the general gov
eminent has no right to interfere with
state banking institutions or to exercise
over them any control or supervision.
The demand for 'an adequate bank
ing currency" in so far rs it looks to
the revival of state bank issues, can
find no justification in the present con-
ditions. There Is an abundant supply
of money for all sections where the re-
quirements of legitimate business call
for it. 1t has recently been demon
strated that there is a vast amount of
idle capital in the country and as soon
as confidence is restored it will be
found that there is no lack of money |
to meet every legitimate demand.