The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-03-31
EE wfEEdf1NG lngTa MoRNENa MARoH 81 1870

mences and proceeds rs a funding bill
should, until It peathCs the seventh Sec
tion, when Il Imposes an additional tax, or
what Is the same thing, deprivcS the banks
Of all profit in their circulating notes. It
Is claimed that In this section 1t Is not In
tended TO harm the banks, ,but5sthe dele
cation inquired, u that is 80, EhyS Stliis
section requiring5tllem to deposit 6ondS
AVERAGING four and a half per cent, inter-
est 10 secure their notes In place Of six
per cent. bonds! Why not, they asked,
treat the banks us you do the Other own
ers ofbhnds, and leave all reference TO the
banks out Of the bill9 Tho delegation
then proceeded TO say that they did not
deny. Congress tho power to do this, but
they did question the right to do i, and
did not believe tho reserved power in the
Inv was ever intended 10 be used for. any
such purpose. What law have they viola
ted, they asked, that they should be de-
prived Of the use Of bonds for the pur-
pose for which they bought them, and be-
required under penalty OF torfeiting their
circulating notes, to substitute bonds boar:
ing ono anda half per cent less interest?
TtIey unhesitatingly answer that they have
done nothing. It Is claimed that tho banks,
have a valuable franchise, and can Afford
10 make this contribution, and tho Comp
troller Is applied toy prove this, but the
DELEGATION declare JthB Rto bo u IniStdkel
4 large portion Of the National Banks
were converted from State Banks, and
brought over large share Of their profits
and capital, 20 that the profits that now
appear are the accumulation OF many
years-somo OF them for, fifty yeas, i9-
stead Of Anew years under tho present sys::
TEN. The latter, they maintained, confer
red no franchise over tho State Banks, cx-
cent the right to receive circulating notes,
and II. E.thelbanksate deprived Of allprnts
on their circulating notes, oil induce
ment under the National banking system is
taken away. Tint profit they declared
was certainly removed by the seventh
section OF the Funding bill, and they IL
lustrated It thus: The banks soy that
mongy is,Worth 7,per cent; and tllAtdnterSs
est ,can1 be obtained, without any bank
franchise. Now suppose gold to'beat par.
and we buy one. 4t per cent bond for
81, ,000.' We can get Z per cepttor that
81 ,O0Oi 10 We. charge it{mterest $40. n We
gct $500 Of circuliting;notes on that bond.
hut the law requires us to keep $2OO OF
TINT amount on hand iu lawful money
and.we charge 1t Z per cent, which is Sl4.
Tie Government fax IS IS, hid Tho loss
in nluttlated NOTES, and SSeXprGse charges
will amount 10, 50, making q total OF
S100' We shall receive for tile, invest
mcnt the Interest, on. the bonds at'44 per
cent, $45, and the interest on the $500 Of
circulating notes, which is $50, making u
total OF SOL. ilfye arc fortunate, said the
delcgation,wc make 81 year on an invest
ment of 81 900 over what we! could mlEe
on the same Investment, without going in
to the banking business, thus proving no
profit in the circulating terms Of the new
bill. Mr.. Coleman, OF New York, made a
statement 10 show that tho New York
State banks had made ten per cent more
profit with less capital than the National
banks in the same State. The latter gen
tleman said that Senator Sherman, In his
letter to Cincinnati paper, stated that
every National bank could not retire from
business and organize under Sthtc lays;
but he omitted 10 state that the lawful
revenue Of the National banks OIL theseth
of0Gt6ber last, swGs 800 $50 ,O6f which
vast sum was lying idle ind beheftting
nobody but which could be used by
banks organized under State laws for bust
ness purposes III conclusionIit WIS de-
clarci that the National banks could not
stand any further imposition Of taxes, NOR
could they stantt lany reduction Of prdf.
fits on their circulating notes us was
proposed by the Funding bill; especial
" the latter feature. The banks, on
September 30, 1860, had paid $lO,09O,-
$50 taXus to-, the General Govern
mcnt, and $S,979,711 taxes to tho States:
making Total, ,of over nineteen millions of
dollars, and being over. four per eCntIon
the capital stock. AS the National bank
ing system now stood, the delegation In
dorsed It. The interview with tho Com.
mitteo lasted yearly two hours and lst.
tractcl great attention. II is'stated that
Secretary Boutwell, replies tomorrow to
the views they presented. ''ii a.' +