The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-08-16
The Revival Of Wildcat Money.

The Revival OF WILDCAT Money
From tha Chicago Tribune.
The Louisiana Democracy at their late
State Convention furnished perhaps an
explanation Of the Southern unapimity
\ in opposition to the National Banks, and
may 90 far in explaining the demand Of
many Northern Democrats for the same
purpose. The resolution Towering this
subject reads thus:
R,Iolvtd, That the Loulsia"a Democracy de-
mpnds that the Rdiional Banking SyIisRi IhOuld b
dbolIAef and the National Bank noies retired, and
IN lieu thereof that the Government Of the United
siAtss should issue an equal amount Of Treasury
notes eommonly,kn0Wn 10 greenbaekSI and We Als1
demand ths unconditional Ttpcai u hs ldl1I tmpoi-
ia1 iaE gpoa he eireSLliiOR u sidts bank.
II will be seen that the demand Is not
merely for the abolition Of National
Bank circulation, but for the repeal OF
the National Bank system, which means
the repeal Of all the bank charters. This
has deeper Significance because &C.
com panied by demand for the uncondi.
tional repeal Of the laws imposing tax
upon the circulation OF State banks.
There are some 5000 State and local
banks, the INSTRUMENTATION Of which Is
prohibited by tax Of 10 per cent. The
repeal OF this tax would at once enable
all these banks to Issue notes under the
State laws and charters, and in Illinois
we would have a revival OF all the banks
ofissue, where the charters have not been
abandoned, In operation before the War.
The plea that more greenbscks should be
issued TO take the place OF the National
Bank currency Is one that, If 1t have any
force, should apply even more strongly 70
State bank notes. There are, 1t 10 stated,
| 7 900 banks 10 existence in this country.
OF these, 1000 are National Banks. all Of
whom are compelled to have a bank.note
issue of not less S45 900 each. and may
have as much Is more as theylhi proper
by depositing the requisite security. The
circulation OF these banks is so protected
by law that, though banks have failed
without number, not one dollar Of their.
currency has been lost, not one dollar has
failed to be redeemed. This is in striking
contrast with the history Of State and all
other banks in this country, and is
peculiarly striking in contrast with the
people OF Illinois in the matter Of banks
chartered by the State. In France, the
National Bank ia compelled TO have coin
enough on hand to redeem Its circulating
notes. The security for the notes Of the
Bank Of England consist Of deposit OF
Government securities up to q certain
limit, and then deposit Of gold, dollar
for dollar, TO the amount OF the outstAnd-
ing circulation. In this country, the
notes Of the National Banks are secured
by the deposit OF Government bonds TO
an amount equal to II per cent in excess
OF the circulation. In France, England,
and the United States the failure to re.
deem bank nota on demand Is not pos.
sible under the existing banking systems.
How will II be under the revival OF the
State and the wildcat systems? The ia.
ture may be readily anticipated by the
history OF the past. In the first place
each State will have its own banking
system, and no two Of the thirty.eight
States will have the same system. The
South Is poor, and there will be local
banks Of issue in every town, village,
and cross-roads, In order 10 make money
cheap and plenty. Before the war, a
large proportion Of the currency in this
State was made up OF bank notes issued
by banks located in Georgia under the
liberal banking laws OF that State. II
these State banks be revived, there will
be deluge OF bank notes from Louisi.
ana, Florida, Mississippi, Arkansas, and
all the other Southern States; and this
currency, issued without limit and Issued
without security, and practically ire
deemable, will find Its way all over the
country and be sold at discount for
while, and then collapse in value, and to
the extent perhaps OF three or four hun
bred millions OF dollars will prove to-
tai loss to the bill-holders. Wildcat
banks will be established all over the
North and the West, and the money will
be forced into the hands Of the people OF
small means, especially in thepayment OF
wages, and after running its race as de.
preciated currency will fall in value until
Il reaches the bottom.
There Is not State bank, nor & pri.
yate bank in the United States which
may not, without expense or cost, become
bank Of issue by simply filing security
at the National Treasury for its note cir.
culation and taking the name OF National
Bank. There ia nothing in the name 10
deter these banks from becoming Ma
tional Banks. The objection Is, that to
issue notes under the National Banking
law there must be such absolute security
given as TO render a loss to the bill.hold.
or m impossibility, and that ia not the
system which these old State banks and
private banks desire. They desire 10
issue 100000, 900 OF bank notes, resting
exclusively upon the faith, hope and
eventual charity Of the people into whose
hands the notes may be thruat. But
system which requires every. bank tina.
Issues a note 10 circulate rs money 10
give security that the note sball be re.
deemed on demand Is, 10 the minds Of
these wildcat aud irresponsible bankers,
rank despotism, and tyranny that de-
mapds instant repeal.
We submit 10 the people OF the United
States whether they wantto return TO the
system OF irresponsible, wildcat banks,
and 10 substitute the notes OF such banks
for those under system which, for four.
teen years, there has not been dollar lost
to the bill.holder. The substitution Of
greenbacks in the place Of bank notes Is
one proposition, but the repeal Of the
National Banks and the reissue Of State
bank notes is something wholly different,
and for which no apology or pretext can
begiven except to grant license to rob
and plumber the people.
W0ODsFlELD, o.