The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-05-29
GheGttelIiqe1ee
Further From the WetEel County
Financier.

vlllH FNdlcdtOTI 10 our lhle comments
upon his criticism Of what We recently
said in regard to National Banks. He is a
very elementary individual in his notions
of finance, To begin with, ho does not
believe in charging interest for the use OF
money, and consequently does not believe
much in banks. He quotes John Stuart
Mill to show that "a bank which loans
its notes loans capital which it borrows
from the community, and for which IL
pays no interest"
His article covers more ground than we
care to include in our present remarks.
Each one OF his elementary positions
would require n separate article OF itself
in reply. We confess that the gem
eral question Of interest-its origin and
ils uses and abusCs--is too formidable n
subject for us to think OF discussing
without more reading and consideration
than wo have time to give 1t. We arc
willing to refer II to that category OF
questions about which the world has no
settled opinion, and in regard to which
one mans opinion is about as good Us an
others. No doubt, ii neither money nor
interest had beon introduced among fhGn
this earth would have been paradise
compared with what il Is now. Many
good men have deplored their existence us
being synonymous With the origin Of evil
itself, and we are many timcs inclined to
take this view Of the case.
But all such topics have nothing to do
with the origin Of National Banks during
the war, nor the necessities Of the gov
crnmCnt in the way Of issuing bonds with
which to fund It's redundant currency.
Upon these points, which are the points
we touched upon, our WetIel county
friend seems to be very much in the dark
indeed. lie is unable or unwilling to per-
ceivc any necessity for the issue Of the
Fivo-Twenty and Ten-Forty bonds, and
plainly intimatcs that they were simply
scheme Of wanlon favOritism whereby
the rich were enabled to secure desirable
investment at the expense OF the tax py-
crs Of the nation. Why not have gone
on Issuing greenbacks, or "Treasnry GER
tihcalcs Of serviCe?' says this Wetzel
county man. What necessity was there
for putting out an interest bearing bond?
Why, In other words, put out interest
bearing obligations when non.inIcrest OBJ
legations would have answered every pur-
pose2
These questions assume the whole
point at issue-vi1-thAt there was no
necessity to restrain an unlimited issue
ofgreenbacks, and that an unlimited issue
ofthcm would not have deprecated lower
during tho war than they actually did
dopreciato under the operation OF funding
them into interest bearing bonds. We
presume that we shall not be able to an
swer these questions to the satisfaction Of
Mr.. wcstrup, inasmuch as he quotes
John @. Calhoun 10 show that tho paper
issues Of North Corolina were at par after
the Revolution, simply because they were
made receivable for dues to the public
revenue Of tho State. We will venture
however to remind him that there are
two ways in which money may be dcprc'
ciated in value-viz--by lack Of conf
dence in its ultimate rcdcemabilityt and
also by It's redundancy in excess ofthccom'
mercial necessities Of any people. In the
first instance, II matters little whether
the volume OF money Is great or small
inasmuch as II Is the element OF conf
dence that governs Promises to pay dc'
pend largely on public confidence for
their purchasing power. In tho second
instance IL Ia the element Of redundancy
that works the mischief. And to this end
II is not necessary that the money should
be paper money. Gold and silver have
atcertain times, as in Spain, been 10 re-
dundant as to initiate every necessity and
luxury Of life far beyond their real valnc
In the instance under consideration, how
ever, viz--the war Of the rebellion-botl
elements Of mischief were at work to dc
prcCiate the purchasing power oil our p"
per money. To illustrate what we mean
we may refer to the fact that before
single greenback was Issued, and while
Howell Cobb was Secretary OF the Treas
ury Under Mr.. Buchanan, the credit o
the government was deprecated, FOL
lack Of confidence in the government
itself, about twelve per cent. After the
war commenced, aud ns long as the gov
ernment paid out what were known a
"demOnd noteS,"-lhNt is, notes teceiyn
bic for custom duties, und all other gov
eminent dues.-the currency was only Z
fraction under par in gold and silver
But the necessities Of the government
soon compelled II TO put ont furthel
large issues Of paper money, and thest
issues we're not receivable for custom
duties. why9 Simply because the gov
etnmcnt was obliged to provide large
amount Of specie to meet not only IT.
existing obligations in the way Of bonds,
principal and interest, but likewise the
expenses Of its foreign service. Its credit
in Europe, in all the senses and values
Of The word credit depended OH It's
ability TO protectitsmuturinS obligations.
During the first year Of the war, however,
there was really marked depreciation
Of the government currency. The fact
that the three months men were paid of
in gold in August, 1851, was Of incalcu.
liable service at home and abroad, as
was shown by the fact that certificates
Of Indebtedness were readily taken for
supplies at specie rates, and very little
American Indebtedness abroad, in the
.t,ana - I,nJ. 49,. - -. H.. ala