The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-09-17
The National Currency-Better than
GreenbAckB.

GreenbackB.
From the Chicago Tribune.
Those who have imbIbsd the errone
Gus notion that greenbacks are In some
way better. or safer, or worth more
than National Bank notes, should ask
themselves the question whether q
United States Treasury note, payable at
no time, and with no interest, Is worth
more than a United States bond, specif-
ically payable at the end of q certain
term OF years, and bearing interest at
per cent or 6 per cent per annum.
They have only TO go Into the market
and ask, to find out that with gold at
In gold, while the 10 10 bonds (which
are now used to some extent for depos.
itinR with the Treasurer OF the United
States 10 secure the circulation OF Ma.
tionAl BRnks) are worth, exclusive Of ac
crued interest, ITO In currency, or
nearly 81 cents on the dollar In Igold,
and Of the 52~0I In the later issue, such
as are used by the banks for dpposlting
with the Treasurer to secure thelr cir
culation, are worth 00c In gold on the
dollar, exclusive OF accrued interest.
Let US see, then, how much marketable
value 10 deposited to secure the redemp.
tion OF National Bank notes. For eve
ry 50, 900 OF circulating notes received
from the Treasury Department, the Ma
tional Banks must deposit, as security,
$40 600 OF 500 or 10 40 bonds.
II they are the former, say Of the Issue
Of 1867 or 1858, they are worth In the
market nearly l2O IN currency, exclu.
siVe OF the accrued interest; or SS cents
on tho dollar In gold. The $4,000 in
bonds, then, Is worth q. 500 In gold, or
$l2 O0U In currency, showing that every
dollar OF National Bank currency ls
secured by deposit that will sell In
the market today for nearly O9 cents
in gold, or Is cents In currency. But
this Is not all. These bonds, which are
deposited for securing the redemption
OF National Bank notes, are themselves
the definite promise OF the government
to pay at q specified time, not simply
80 cents In gold on the dollar, but 100
cents on the dollar, and II this promise
ls kept invlolate, the bonds, Instead OF
being security 10 the amount OF 9S
cents only In gold for every dollar OF
National Bank notes Issued 'on them
will be equivalent, at the maturity OF
the bond, TO security TO the amount OF
ITO cents In gold for every dollar OF
National Bank notes. But even this
Ia not all. The National Currency act
provides that In case the market value
OF the bonds deposited 10 secure circula.
tIon shallfall below theamount OF circu
latIon issued for the same, the ComptrOl.
Ter OF the Currency may demand Of the
banks additional bonds OF the United
States as security for the circulation
Issued to the banks; and, also, that In
default OF the bonds so deposited being
sufficient when sold 10 pay of the notes
OF the National Banks, the United
States shall have, In behali OF the hold.
erS OF the notes, "a first and para
mount lien upon all the assets OF such
association, and such deficiency shall
be made good out Of such assets, In
preference to any or all other claims
Whatsoever" Not only are all the as
seIs Of each banking association held,
but the shareholders OF the banks are
also held by law, Individually respon-
sible' to an additional amount equal 10
the amount OF their stock In the banks.
Now It must be apparent that there Ia
more security pledged for the redemp-
tion OF the National Bank notes than
for the redemption Of the notes Of the
government Itself. Nine Thousand dol
lars In green Is the promise OF the
government to pay nine thousand dol.
lars when 1t Is convenient, and without
interest; but nine thousand dollars In
National Bank notes Is secured by the
pledge Of the same government to pay
ten thousand dollars at a specified
time with interest. Whatever the frat
of these two promises may be worth,
the latter one is certainly worth the
most. The difference between the two
kinds OF currency is simply that the
government is pledged TO the redemp'
lion OF both, but that the capital OF all
the banks Ii pledged as an additional
security for the payment Of the Nation.
al Bank notes. Thus the nearly $780,
000.0 OF National Bank notes now in
circulation are not only secured by the
promise OF the government to pay $342,
900, 900 OF bondB deposited by the banks,
but, also, by an. amount equal to the
capital OF all the National Banks that
issue circulation, In amount something
over s400, 200, 900. II must be apparent
that, as tar as the notesholder IL con-
cerned, he has more security In the Ma
tloual Bank note, than In the United
States note. No opponent OF free bank.
Ing can honestly claim that greenba ckH
are as well secured as National bank
noteg