The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-05-10
GhelntelIiqet1te1
A Wet.el COUNTY FinancIer.


day last, which commences thus:
"The imbecility displayed by the edito
Of The Wheeling ISTELLIGENCER in hi
article enfitled THE advantages Of tn
National Banking System to the Public,
in the issue Of the Both ult,, is seldom i
ever Gqualed."
1t might be supposed from this speCi
men of vigorous writing that the Wetze
county writer had some very profounC
and we'll authenticated ideas to present Or
the subject of banking, The reader will
therefore, hardly be prepared to read thu
following scrap OF hitherto unpublished
history in regard to the origin Of thu
National banking system: lie tells us tina
gold having become scarce during th'
war on account OF heavy shipments Il
Europe, II was necessary for the govern
ment to supply tho country with subSti
tute as circulating medium, This sub
stitute was supplied thus: Certain per
sons, owners of bonds which they had
purchased at about 80 per cent Of theil
face value, we're allowed to return these
bonds to the government and receive
therefor 90 per cent of their value In the
shape Of National bank notes, which notes
these bondholders have ever since loaned
out to the people ut 4sund rates Of in
terest, To cap the climax Gays this
writer) tax Of 10 per cent was laid
upon all other forms of banking and thus
swindle was consummated by which the
country is robbed Of SOME. forty millions
of dollars for the use Of National bank
currency,
II onr Wetzcl county friend will bear
with our 0imbecility" a little further in
the matter of few remarks on the Ma
tional banking system, we will rise and
explain wherein we think he ia seriously
IN error. In the frat place, the system
did not originate lv reason Of Eny spe-
cial necessity for supplying a circulating
medium. either on account OF shipments
Of gold 10 Europe or the boarding Of 1t
in this country. The preenback currency
was in existence n long time bcfofe any
National bank currency was Issued. II
mere currency had been all that was
wanted. these Rreenbacks would have
abundantly supplied the wants Of the
countrv But those who were charged
with tho management Of the National
finances knew that mere issues Of paper
money without any provision for funding
then, would soon endanper their purchas-
inc power, and therefore they made them
exchangeable for government bonds,
which bonds, in turn again, were made
the basis Of National banking system.
This system was not noyclty in finance.
II had obtained in several of the
States, prior to the war, Virginia among
the rest. and rested for lis basis upon
the bonds of these States, iust as the
National system rests for lis basis on the
bonds NJ Tho government, The reason
for institutinp II as National System
was two fold.S First, to enlist the monicd
interest Of the country in the financial
support Of the government. II is hardly
toomuch 10 say thathad il not been for the
active and influential support Of the Na.
tional bauks The bonds Of the government
could never have been marketed aS
speedily and extensively as they were
marketed, In the first place, oil the ex-
iStins banks Of Issue were virtually com
PEELED to adopt the system in order to es-
cape the 10 per cent tax laid upon their
own comparatively irresponsible issues
Of paper money. In this manner hundreds
Of millions Of capital were at once, as II
were, by a single act Of legislation, en-.
listed in the salvation OF the government.
They we're forced 10 buy government bonds
and bank on them, or elsc become mere
banks Of deposit Once they had bought
these bonds and embarked in business
upon them, II became their interest to In
duce the people to buy them also And
this they did to an extent unprecedented
In The history Of any nation. Hundreds
Of millions Of government bonds were
thus placed among millions Of thrifty
citizens, every one of whom became n
warm supporter Of the National cause.
The effect WA not only to give the Gov
ernment immense and direct material
and moral support but, indirectly, to
save the Rreenbaek currency from ruin.
II was funded with such rapidity that
II never once became ID excessive supply,
opd the oblv reul measure Of its depre-
citation VIVA the uncertainty Tint over.
buno the stpt,gule Win The rebellion.
This wos shown bv the collapse Of the
void prem,um irnn $40 during The dark
lays Of The Wilderness battles, to 30
cents on thedollar shortly after the fail Of
R;chmord ord li,o sutrnndnt nj lehman