The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1867-12-14
From the World
The National Banks.

These institutions will make hard
struggle for life, aided by such power
full auXiliaries that we do not EXPECT To
see their death-warrant till after the
Presidential election; nor even then, If
Chief Justice Chase should be the sue
cessful candidate. Their continuance
will bc one Of the issues of the conte.t
and the public mind must be prepared
TO form an intelligent Judgment there
on.
The manifesto of Jay Cooke and the
reports of the Secretary Cf the Treasury
and the Comptroller of the Currency
present the strongest arguments that
can be made in behalf of the banks. Be-
fore stating the decisive objections to
their existence, it may be well to clear
the ground by disposiug of the pretcn-
ces of their friends.
The main argument in favor of the
national banks is, that they give US a
uniform currency, and protect bill-hold-
urs against loss. This is specious fal-
lacy. In the first place, their notes, so
long as specie payments are suspended,
merely displace an equivalent amount
of rreenbacks, a currency equally uni
form. and safer for holders. The value
of the notes consists in their exchange
ability for greenbacks-at the banks till
the banks fail, and at the Treasury
when they break. In the next place, 1t
is assumed without warrant and against
probability, that after the greenbacks
are withdrawn, the only choice lies be-
tween the national bank notes and such
a currency as the Western banks fur
nished before the war. Previous to the
war, the State banks were sound IN tho
older States, from the fact that they
rested on solid capital. They were weak
or rotten in many of the new States
| from the fact that in those States, hav-
ing little capital and large uses for mon
ey. credit was stretched 10 the utmost,
and frequently stretched till it broke.
This was a temporary evil incident To
the newness and poverty of the West
erp communities. But the West is be.
coming populous and wealthy. and be,
fore the greenbacks go ont OF use 1t Will
be in a position to have State ban ks as
sound as those of the older States before
the war. It is absurd to reason on this
subject as if the West were never to pass
out of infancy. 1t is absurd to argue,
because child frequently falls i'll be-
ginning to walk, that it will never
stand firmly on its legs.
Moreover, the argument founded on
uniformity is overdone and inisapplied
When specie payments are resumed,
the precious metals will form the only
money that will be tender for debts
These metals have the stable uEiformi'
ty which consists in intrinsic value, not
the factitious uniformity which depends
merely on legislation. This argument
of uniformity is insisted upon by the
bank advocates mainly with reference
to intercourse between different parts
of the country. But foreign countries
are distant; and yet no inconvehiene,
to foreign commerce results from the
fact that their local paper circulation IL
not alike. Though much paper is used
gold is the basis of distant commercial
intercourse. Foreign bills of exchange
are the natural and ordinary currency
of foreign commerce, and domestic bill'
of exchange between different parts o
the same country; gold being used t.
liuuidate balances, Us 1t would equally
have to be il bank notes were used in
stead of bills of exchange. The mair
prop of the argument for uniformit!
therefore falls as soon as IL is touched.
The security of bank notes (whose ap
nropriate use is in local transactions.
though of uuquestiouable importance, Il
vet a minor consideration. The reason
is this: That the circulation of banks
bears but u small proportion to their dc
posits. Both are alike debts t0the com
muuity. When bank fails, If mar
has twenty dollars of its notes In hi
pocket, and five thousand dollars de
posted in its keeping, it is q small con
ISOLATION that the twenty are secured
while the FIVE thousand are lost. 1t j
the practice of modern life for men 4
carry very little money in theirpockets
; They make their payments chiefly b.
, bank checks drawn against their depos
its. Even the working classes keep bu
little money by them. nthey spenda
their wages as they 60, they OF cours