The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-10-24
The Political Economy Of BankIps.


Rron The Financial Co,nnn Of PhIlA Pres.
II there were but one kind Of money
recognized BY the government, and that
coin, many perplexing questions that now
disturb the business and industrial inter.
ests Of the county would be practically
settled There would then be no reason
why the government should be constant.
" ismpeFing With and supervising the
business Of banking any more than It
should undertake the supervision Of the
making or the buying and ceiling Of boots
and shoes. Banking proper Is nothing
more than commerce In debt. The coin
dollar, in which these debts would be
recEoned, would be fixed, and only
changed by the government changing the
standard OF money, so that the amount OF
these debts bought and sold by bankers
would have no influence whatever upOa
1t. The debts OF community would be
mostly settled by bank checks and drafts,
as they now aye in all the considerable
transactions Of life, Snd coin would only
serve to adjust balances and facilitate the
smaller transactions that occur in daily
lie. Under such circumstances the inter.
terence o. dictaiion on the part OF the gov.
eminent with the business o! banking
would be c matter 0! such sheer Imperti.
nence that none would be found 10 give
il counteuance. But when the bust.
ness Of banking proper becomes changed,
IS II is under the present system, and
banks are the makers Of debts, which
they issue IS money, and with which they
deal in other debts, the case is very dill.
ierenL The quantity as well as quality Of
these spurious and flexible debts, to be
used and treated as money, is Of vast i'm.
portance 10 all the business interests Of
the country. The amount of the issues
Of these nicely engraved tokens OF debt
measures the value Of every persons
property, which filciuAtes, rises or falls
with its increase or diminution. II coin
were the only mouey, the dollar would at
all times be the same; but, with paper
debts used as money, the standard dollar
becomes vArisble BY the quantity and
quality Of these debts. II is important
that the whole community should under.
stand, more particularly the industrial
CLASSES, that the pSper circulation called
money is nothing but the evidence OF the
debts Of the Institutions issuing ii, and
that most Of the instability OF business
and the various fluctuations in values are
caused By the vsTiableness Of the supply
Of this sort otcurrency, occAsioned By the
Rhims, trights or speculative interests Of
its mskers Il l. this state O! afairs which
affords the only preiext for governmental
interference in the business Of banking; II
considers itseli especially charged with
the Gaze Of the peoples debts The ms
tional banking Law at present restricts the
ISSUES 0. national bank bills 10 1854, 000,.
90, o! which about $3.50 900 900 are 81.
resty in circulation, and requires the city
banks 10 hold rigid reserve Of lawful
money TO the extent Of IS per cent Of their
Liabilities, and country banks IN the extent
Vi Is per cent; and there are various other
minor restrictions and regulations. Some
VI these are felt 10 be needless and irk.
some, and others Improbable and even
peEnic!ous; bat 50 long as banks issue the
money Of the people, they must expect
th4I the government, which feels reSpon.
s!o!e for the character OF the current
money, will regulate mstiess OF banking
As We have often said, the banking sc;
perfectly secures the noieholdeT; shout the
iepdiIor the government naturally and
properly cares less The practical ques-
tons 10 solve n our system o: banking
are: Is il useful or injurious to the
Interests Of the country that they should
issue paper money ST all; do such issues
cOntuce 10 the general welfare" OF add
anything 10 the legitimate banking iscIl.
itles Of the country, or does il AID any
thing 10 the prosperity Of any one
but those who have 3 monopoly OF il:
II il no esSen!!a! part Of the business OF
banking 10 issue promises 10 pay, or 10
lend thelE credit, or rather 10 force il
upon the community il such form II
IS question worthy o. The most earnest
siieniIon G! 81 oui business interest;
whether i; wUl,l 10; be = step in sd
vance, both 70! the permanent interest Of
tue banks g we., IS the people, Tor the
former TO Be prohibited from issuing bills
payable 10 bearer OF demand, and il can
b Clearly demonstrated that such bills
p!sy 10 important part in our industrial
development, be; are drain and tax
upon industrial production. This oEes.
ton msy not be practical one to-dsy,
BAT. in the rapid progress Of our country,
the time is 10; lar in the future when
banking will be upon the same footing
as every Other business, with 10 higher
privileges or no monopoly that is not
possessed IN o;Ae- business pursuits.