The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-07-18
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! few days ago to destroy The National
Banks, to call in their notes, and 10
substitute legal tenders. At the last
session several plans were proposed
having these objects in view, and in the
Fail the subject will inevitably come up
again for discussion at Washington.
The main argument urged in the pres
ent attack on the banks Is the costliness
of the system to the country. 1t is said
that the banks receive some eighteen or
twenty millions year for interest on
the bonds deposited as security for
their currency. This large sum Isl to be
saved. By substituting greenbacks
and calling in bank notes the saving
may be made. Twenty millions "a year
| is the alleged cost OF the banking ma
chinery, and these twenty millions II
year are to be saved to the country by
| the destruction of that machipery.
There are other subordinate argu-
ments used by the anti-bHnk men, but
no one has yet shown that the evils
com mplniued of wound not for the most
| part survive in any substitute which
might take the place of the present
banking system. Tue main question
raised ut present then is virtually this:
/ Are the National Banks worth what
they cost TO the country And Is the
difficulty to be met by Imposing on
these institutions larger taxation, or by
destroying them altogelheIY
| We are also entitled TO ask the Oppo-
nents of the banks how, If they Hbol-
| ish the National Banks, they will avoid
the old mischievOus State banks, with
all those evils which must follow in
their train. These banks are still in ex-
| isIence or ready TO revive. Their pow
Il
| Within six months after the repeal OF
the National Banking Law, we should
| in all probability, see the removal of
the tax gu State bank currency. With
this tax repealed would come "A season
of initiation, and in view oil the profits
of such initiation, the pressure of Con-
Eress would be too great to resist.
The contrast between the former and
the present condition of the paper cur
rency of this country is fOrcibly stated
by one or the most experienced old
bankers in this city, AS follows:
The National banks have been in
full operation for four years, with cir
culatiOn lun upto $30O. .OOO,O 600 and not
| one dollar of this currency has ever
| been at u discount. This fact is worthy
OF careful consideration. There is not
one in II hundred OF the people of the
country that cares anything about
! banks or banking, any further than to
know that the currency is universally
at par and Individually sound. It is a
| fact that the currency issued in any OF
the extreme Southern or Western
| States is as good Hs that issued by our
own banks. No more New England, ,
! u per cent. discount; New York State,
n per cent. discount; Michigan, wild
cat; Illinois and Indiana, stumP-tail,
at all rates, from 8 to 70 y cent. dis
count. Our merchants have got rid of
their uncurrent money clerk and the
uncurrent expense account of the same.
Another great revolution and reforma-
ton is, that we have got rid of currency
panics. As the money market grows
light, our safe and par currency is
swept out OF Wall street, because money
| is wanted, and the currency is money.
Formerly, in panic, currency WAS
rushed intO the markets and into the
banks Tor sale or redemption, for il
was not money, but IL required money
10 handle and redeem it, Henceit was
the most inflHmmable element in a
reYulsiOn. a Shinplaster bank some
where would burst-its redemption
agent would stop redeeming-iL would
be thrown out here or in BOston-a
dozen mOre would be reported broken
and away went every bUdy's currency
to be sold. Now, who cares ifa SHIiOu-
al Bank has been robbed and breaks,
or breaks because of doing bad busi
ness, or is broken by It's managing
speculators7 It's Circulating notes are
good and current nevertheless, and
they continue 10 be mOney-good
money-everywhere
We would repeat the question then,
as 10 what Is proposed To follow the de-
stTuction OF the National Gauks7 Ii
Congress should substitute nothing
then the Stale banks will revive. Il
| Congress Is TO propose some new
scheme of banking, what shall mat
scheme be2 In what points is II better
than The one ills TO supplHnL? and how
shall we be preserved from The Perlls
and pan.cs which must siYnHlize Ihe
IrHnsIIlOn from the old 10 the Dew7
Although we were not favoraO ole to the
National banking system when it WAS
first projected, sui, AS 1t Is firmly es-
IAbIished, ana has worked better than
expectation, We have little sympathy
win those persons who would destroy
it by single act of Congress without
knowing precisely what better financial
machinery they can put in lts place.
There is not u single Objection urged at
present against The banking system
which WAS not freely canYAssed i'll and
out OF Congress at the time Of the pas
sage of The first and second National
Currency Acts. On The contrary, many
OF the objections then urged have prov
ed unIounded, and mulItudes OF OBJ
servers have come 10 the same cOnclu-
sion as ourselves, that the financial
condition of the country Is too sensl-
| tive and the interest involved too sIu-
pendous 10 allow judIcious sstates-
munto contemplate with equanimity
the prospect OF SO sweeping u financial
revolution as would be caused by the
project to which we have referred.
II hus been said that there is no dam
ger that such a perilous measure wiIlat
present lind favor with u majority in
Congress. We think this is probably
true. The banks have friends who are
well able to plead their cause. In many
parts OF tue country they exercise no
small political influence, and although
it is impossible that the organized
force OF the National Banks eau ever
be combined by political uspirants for
the attainment OF office, yet 1t Is easy 10
see that the banks when Threatened,
may and should unite under the con-
trolling instinct OF self-preservatlOn.-
1t would be Il national calamity II the
National Banks should ever become
4 poliLicH machine, welded by some un-
4 prinCipled, ambitious demHRogue; but
no pusllIanimous fear OF such an im-
possible result should lead us to wage
"a blind, indiscriminate warfare on
corporations as essential TO the welfare
OF the country, and SO conducive to the
growth in wealth and productive
power.
CENTRAL ASIA and its affairs seldom
come under the eye OF an American
reader. The Russians in Bokhara are
carrying on war against the govern
ment of that country. but though the
wer is bloody and has continued good