Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1857-12-16
For me InseIligenesr-I
THE CURRENCY QUESTION.

Nessrs Editors Although l not Bu-
ehanan man, believe there should be a law
Dassed regulating all the banking institutions of
the United States; but to prohibit them of the
power to circulate paper money altogether, we
think would be very injurious to the country:
they should be regulated and restricted. We be-
lieve that the principle of the banking system IS
wrong but to do it away at once would be
committing a greater error. This should be
done by degrees. The Constitution ofthe Unit
ed States SAYS: No State shall coin money,
emit bills of credit" DC, but it seems that the
people do, what State is not permitted to do,
..e1nit bills of credit and these promises pass
as u circulating medium in place of legal mon
ey. 1t is said that 'the natural wear andwaste
Of metal is several millions of dollars annually.
If there is a waste in using metal as currency,
is there not greater waste by using paper
Prom 1886 to 1872, It'll estimated by those
having the best means of knowing, that the
people Of this country lost fifty millions in bro
| ken bank bills, and this loss Is continually
going on, and what IT would amount to by this
| time, know not then, there Is a constant
loss by worn out bills, not to the country to be
sure but to somebody In the country. The loss
! is immense: Every bank that has been in opera
ton twenty years finds, on winding up its al
fairs, that from So 900 to $4,000 of its bills
are never presented for redemption; they have
been lost to the holders. What must be the ag-
gregate loss to the people by this alone: And
the loss from counterfeits is still greater. Now
put these losses all together, and the loss is i'm
mense. A distinguished English writer has,
from the reports of American and British Inints,
ascertained that the loss gold coin is less than
one twentieth per cent per annuIn; so that of
every 500 coined at any given time, S95 80
will remain at the eud of one hundred years
IF gold were substituted for our whole paper
currency, which is said to be 195, 100000, does
any one suppose that the less would be as great
rs on our circulating medium" paper money
! Does anybody believe that SI95, 00o,0 900 of pa
per money can be kept in circulation, renewed
from time to time as it wears out, for one TWEEN
! tieth per cent per annum? Far from it. The
abrasion" of paper money occasions far high
er charge on the community, on the industry of
the country, than currency on a specie basis,
that would be always safe. But of n minor
Importance is the expense of the officers OF
near 1000 banks, with the incidental expenses
which at a moderate calculation, would be 3d.
! 100000 annually.
! Is paper currency safe and reliable to the
business community, managed as ours has
been? Our banks, under our present system of
| banking, promise to pay specie for all claims
against them, when 1t is generally true that If
one half their debts were demanded at once
they would be obliged to suspend payment Ac-
cording to the official report made in October
last, the banks of Massachusetts,: owed over
$50, 900 900, and to meet these liabilities they
had only $4,000 600. This shows that if they
had been called upon they could not have payed
one tenth of their debts. The individual owing
$50, 900 for which he was liable to be called up
on any moment; if he had only $500 to pay
with, would not be thought in very safe con-
diiion; vet such is the condition Of many, very
many of the banks il this country. Then, is it
not true that they are not safe and rcliablc?-
| Have the business men, the merchants and
manufacturers, sufficient assurance that their
| banks will afford them at all times the accom-
modutions they require2 Can the banks furnish
them TIE amount of currency to enable them to
discharge their obligations at all times! We
say certainly not for as soon there is a de-
mand on the banks, they must stop all discount
The banks are not to blame for this, it is the
fault of the system. Often those that do not
suspend, do far more mischief to community
than those that do; for in the partial contrac-
TONS that occur, they throw all the distress on
the public, being unable to accommodate their
customers. Such has been the past history of
of such n currency: therefore, we believe that
our present system of banking is not reliable
We do not suppose that the more rejecting and
far seeing have any doubts on this subject
Many have become so accustomed to periodical
revulSiOns as to regard them as inevitable and
necessarily incident to trade and currency. We
think that if our currency was so reformed aud
restricted, to be safe and reliable, at all times
and under all circumstances, that our revulSions
of trade would be few and far between; there
fore say to all. examine, think and reflect on
this subject for 1t is of great Importance to the
public. Yours very truly,