Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1879-08-08
In Session at SaratOga-Address Of jOhn
J. Knox, Comptroller Of the Curen-
cy on Banks and Bank
ing System"

| least able to bear it. Bank taxes, state
and National, have been most arbitrary
and unjust, and in many cases resulting
| in the collection of twice or three times
the amount imposed upon other capital
which the law provides that it shall be
exactly the same. Its real effects are
seen in the rapid reduction OF banking
| capital, which has taken place. The
tax upon deposits should long ago have
heen repealed, and if the carefully pre-
| pared tables and sound arguments III
favor of such repeal, which have been
so frequently presented by this associa'
ton, had received favorable con
sideration from Congress, to which
it is believed they are entitled
it would have long since been
accomplished. Why, then, has not the
desired legislation been obtained? The
two and only reasons are the following:
First-The income from the tax has
been needed by the Government. Sec
ond-An unreasonable prejudice has eX-
iste against the banks. The first named
reason has abundant answer in Sl4,-
OOO,OO0 saved the Government in the
last two years, though largely at the ex-
pense of the banks, who were large hold
ers of United States bonds. The preju-
dice against the banks in this country
has undoubtedly partly arisen from
losses sustained by the people in former
years upon the circulating notes OF these
institutions. But the present generation
OF young men hayenOt experienced such
losses, and the reasons for this prejudice
must be looked for elsewhere. The re-
iusal to loan money, except upon the
best OF security, may account largely lor
the prejudice against banks and brok-
ers as a class, but when good times
come and the people generally are pros
porous this prejudice ceases to large
extent. The holders OF bonds bearing
four per cent interest can hardly be
called "bloated gold bugs" Those
who loan money at from , to 1 per
cent. per annum cannot well be
termed money sharks" | look
for Il change OF opinion among
the people in reference to the banks and
bankers who have survived the evil
times through which YOU all have passed.
If the people change their minds the
minds of the members will also change,
so that feel quite certain the tax upon
deposits will be repealed by the next
ftSnmption,H saRr:' T.vepy ~cirrherr' 1e4fs
proud OF the late achievements OF the
Treasury Department.. No nation ever
before within one hundred days sold
five hundred and thirty-scven millions
OF bonds at as low rate OF interest as
four per cent. No nation ever
before in one hundred days made
an annual saving SIS, ,005, ,0OOin interest
upon its public debt. No nation ever
before resumed specie payments with
six hundred and sixty-eight or six hun
dred and seventy millions of paper money
IN circulation. Never before have any
people evinced such unbOunded talth In
the credit OF a nation as have the Amerl-
can people during the last six months.
No man can be found in all this land,
who, since the resumption OF specie pay
mcnts, has demanded a dollar OF com
because he lacked faith in the issues
oi the country or in the banks.
The amount OF gold coin in the treasury
and in banks is to-day greater than on
anv dav since resumption. The Treas
ury has redeemed nearly Sl2O,OOO,OOO
United States bonds with legal tender
notes. and not dollar in coin has been
demanded in payment OF 5OO,OOO,OOO OF
called bonds. The Comptroller then told
the story OF the authorship OF section
in the Coinage Act OF '73 which dlscon-
unued the coinage OF the SILVER
dollar. and said: The Coinage Act
of rs and the Retised Statutes
of ~. simply registered in form
OF statute what had been really the un'
written law of the land for nearly forty
wears. In my opinion, there is not
properly any such thing as double
standard. That which is called double
standard is simply alternative standard
silver. circulating TO the exclusion oI
gold whenever the mint and market
rate is such that silver Is Over-yalued
i'm it's relations to gold, and in turn gold
circulating to the exclusion of silver
when gold is really the over-valued
metal.
The Comptroller argued that 1t Is FOL
several reasons probable that both sys
TENS of banking, National and State
shall continue to exist, and that they
| should each be improved and perfected
! lie closed as follows: The dead wood o
many years in banks has been nearly
/ cleared away, seven years of famine have
passed and already have begun years o
! plenty. ! look hopefully into the future
/ and during these years | venture TO pre-
diet there will be no suspension o
! specie pavments-that the gold stand
ard will prevail although the use
/ of silver as coin issued unde
restrictions will increase, and that tn
interest on the public debt will be pald
i'm GOLD dollars OF - $40 grains or II
equivalent; that legal tenders or tn
quality OF legal tenders will disappear
that United States notes will diminish
bv redemption rather than increase
that the national banking system vii
! extend and continue; that under agoO'
| system OF finance or honest money on
| farming and manufacturing interest
will rejoice i'm abundant prosperity, an,
that there will be seen numerous well
bottomed and well-fiIled American ship
in the principal commercial cities oil tn
| world.
The thanks of the Convention wer
voted to Comptroller Knox.
Mr.. Hallister, of Grand Rapids, rea'
a paper on the "Reations OF banks AM
bankers to the people" Ii was a plea 10
less mercenary motives, Tor the NOR
careful study Of the relations betweel
ahluence and poverty, and capital an
labor, and the duties OF capital as We
as its privileges.
After the recess, Mr.. Sneed, OF ker
tucky. read q short paper IN SILVER an
Gold" arguing that the only specl
basis that gives wealth is that no dis
tinction should be made bt
tween the money Of the poe
and the rich, that nothing could be NOR
disastrous than the repeal OF the n
sumption act that when prejudiee give
way to intelligence, few can be foun
unfavorable TO specie. The poor are tn
first to feel the evils Of debased Gu
reney. A sound currency and firI