The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-09-29
Ghs Gttsgliasttrer.
Once. Nos. as and "a ES;urtssnth street.

Nj, BIaine's Defense Of the NatIonA
banking system In His Bellair
speech.
II Mr.. Blaine had made no otherpoint
in his Bellaire speech than those he ad
nneed in the defense and advocacy Of thl
National banking system, as compared
with any other system We ever had, ant
especially as compared with the old STATE
banking system, 1t would have been {
speech richly worth hearing. Nothwith
Standing the fact that our neighbor, the
BqIRr,does not consider the speech equal
toSeaator Thurman's speech the Saturday
previons,we think most people would con
slider Senator Blaine's position in re-
yard to the National banks as vastly more
"statesmanIike" than Mr. Thurman's
position on the same subject. The argu'
mcnts presented by Mr.. Blaine were
simply unanswerable. He certainly
discussed the system in the light
Of history and common sense in a
remarkably cogent and convincing man
ner. Let us briefly consider the line Of
his argument. First, as to the question Of
monopoly, he said that National banks
were denounced by the Democratic leaders
a, monOpolies. He remarked that we
might as well speak Of farming as monop-
oily. No one can eatryton farming with.
out farm, and no body can buy d farm
without money. No one can 60 into
the banking business without capital, and
everybody who has capital is privileged
to start National bank. There is no re-
striCtions whatever on any man or set OF
men who will buy the necessary govern
ment bonds, and lodge them with the
Treasurer ofthe United States as security
iorcirculation, going into National bank.
ing. The business is open to every man
in the land.
But, says Senator, Thurman, the Nation.
al banks draw double interest, and that is
all wrong. They draw interest on their
bonds and on their circulation. Let US
examine this point. Senator Blaine in
stanced the case OF a bank in his part OF
the country that under the old State sys-
ten went into business with 100000
capital and issued sS5O0OO in notes, and
when it failed never redeemed dollar Of
its circulation. That was only one case OF
an innumerable number. The entire cir
culation of the country persisted once
every twenty years in the hands Of the
peOple-was all lost-under the old State
system. These banks issued three dollars
for one, and some times three and half
and four dollars for one. They not only
drew double, but treble interest, and then
cheated the people out OF the whole
amount at the last. How is 1t under the
National system ? Take bank with $780,
900 Of capital. Only $4,000 OF circula.
lion isissued to.it.QThis circulation is
furnished blythe government, and not
procured by the, bank. "A margin OF 10
Psrlcsnt 'is thus ireseryed atSthsi aafE
Next, margin of 5 per cent. on its $90,-
900 is reserved, wherewith TO redeem such
circulation as may be sent into the Treas
ury by holders Of the notes. The bank,
therefore, only gets the use OF SS5,O0O.
Next, the stockholders are made 10 assume
double liability in order to -protec4 de-
posiIOta Next,a g6yeE1melt hspscsor
is periodically sent to every national
bank to examine It's books and ascer.
tain and report itsi eotdition.. If it
is out Of line the fact Is reported, and a
waningisimmediately issued by theC Comp
Iroller Of Currency, and II the warning Is
not needed the bank issummarilS wound
up and its notes redeemed by the Govern
nent by the sale ofits bonds. So that loss
to the note holders is impossible. The
circulation Of wound up bank is just as
valuable as that Of bank still in business.
The people cannotpossfbly loss anything
by holding the notes ot any national bank
whatever. The thing is impossible. Not
dollar has ever yet been lost to the peo-
plein that way. ContrastthiS fact &lElIthe
million Of dollars the people have lost
since the panic by the failure Of Savings
banks, private banks and institutions Of
th&sort. Contrast It With the losses of,the
peOple'ot oanada bS the ailure of banks
there in the last four years. The National
banks have not onlypAidthe whole cost
Of The currency bureau. ot,the, Govern,
ment BY the TAX levied On them,S but have
yielded aproRt beside 70 the Government
Ofssl, 100000. The people havvie; never be-
fore, in the whole history 81 the Govern
ment had such absolute protection assaiHst
loss. II the question: Of returning u tHe
oldsystem was put fairly and squarely be.
torthem'today they wouldvote t7down
overwhelmingly. iaSg
One of the issue h, BeNsettled in the
Ohio campaign is the attempt Of the Dem
ocatic leaders to dopway,TithtRe Nation,
al banks I'VE ale glaa tliat Senator Blaine
is on the stump in that STATE to address
the people On. this subisSt HE is very
strong on hathsus; md Ne do not be.
lieve that the people will consider Senator
Thurman much Of financial statesman AZ,
ter they have listened 70 Blalne's ,eixposl.
ton and defense Of the National banking
system. 'fs =sasias S'isgI-R'r
The talk about National banks escaping
taxation is not true. They aresthe banks
oiall others that pay heavy taxes. Months
ago, when this matter was uptin:this state
for discussion, We published the tax Iex
hibit otthe National bank Of Kingwood
Preston county, West Yao asiauiexampIt
Of the heavy taxatonI paid by Nationa
banks, both To tha ova q, ,11[sSHHt a,N6 tbtb,