The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-04-18
The Future or the Banking Businesi
rapid Payment OF US. Bonds.

Rapid Payment OF U. 8. Bonds.
The Government is rapidly paying of
It's interest bearing debt. 1t averages from
$4,000, 600 TO Sl6 600. 600 per month. One
cali follows another in quick succession.
Only about 800 millions of its bonds re-
main. They are being paid so rapidly that
holders of them, especially estates, trust
funds and National banks have been seri-
ously inconvenienced by being obliged to
shift their investments. The long bonds,
as they are called, the Is and 44s, have
been steadily advancing in prise because
of the calls for the extended 34s, and be-
cause the National banks. as we'll as others,
have been bnying them at even a pre-
mium OF 20 per cent for the Is in order
to make sure of settled invest
menk On the LIST of April the National
banks held nearly $500, ,0OO, 900 of extended
bonds subject to call, and only about $780,
600, 900 of the longer bonds, but the calls
arebecomins more and more frequentfor the
extended bonds. They are therefore selling
off their holdings and buying Is and AS at
high premiums. It is becoming seri-
Gus question as to what is to be the policy
of the Government after it pays off all the
81 per cent bonds, which it will probably
do somewhere in 1884. Whether it shall
then enter the market and anticipate the
maturity OF the Is and 44 bonds, by buying
them up at the market price and cancel
ling them, or whether we shall let them re-
main as basis for safe banking in this
country, and as very choice investment for
trust estates, is the question. There are less
thau 81 ,OOO, ,OOO, 900 ofthem all told, and they
constitute now just about two-thirds of our
bonded Edebt There are S73S, ,76S,55O OF the
As and $3.50, ,OOO, 600 of the AIS. They are OF
course the most desirable investment in
the world, and are likely to bring much
higher price in the near future, high as
they are to-day. The banks will need, as
they stand to-day, nearly 400 millions OF
them, but as the number OF banks will
probably increase they may need 500 mil
lions. This would leave only 500 millions
as fancy securities to persons OF little faith
in any other class of investments.
But the question arises, are we to have
national banking system in the country?
Or are we to go back to the insecure meth
ods of the past? The Democratic party is
notoriously hostile to the National banks.
They are to-day opposing, in Con-
gress, by all means in their power
the extension of 3he charters of such
of them as expire early next year.
They are even doing this at the risk OF pre-
cipitating upon the country call OF loans
to the extent of Sl5O,OOO,OO0, and the re-
tirement OF 7O,OOO,O 900 of money from the
channels of circulation. They are attempt
ing to staye off consideration of the sub
ject in Congress. Probably they think
that if contraction can be brought on by
the call of these loans, and the forced re-
tirement of S7O,OOO,OOO of money, it will
cause such depression in business as will
rebound to their party advantage in the fall
elections.
The majority of the people of this coun-
try fre favorable to the perpetuation of the
National banking system as long as posi-
BILE, on account OF its security as contrast
ed with any other form OF banking that
has ever existed in this country. Never
vet, since the Inauguration Of the system
in 1868, has one dollar of National bank
circulation perished in the hands OF the
people The circulation is secured beyond
all contingency by the deposit of govern
1nent bonds at Washington. These bonds
stand between the holder OF National
bauk note and any possible loss. Hence
there,has been and can be no loss to the
uote-holder. 1t is worth vast amount to
the country to have its circulating medium
thus secured. Those whose memories go
back to the days before the war can appre-
eiate the contrast which it presents as COM
pared with the irresponsible banking then
in vogue. The time was here in Wheeling
when a note OF one of our banks OF issue
would not be taken at par twenty miles
from home. Indeed it was quite customary
at one time TO refuse them altogether for
railroad tickets on the other side OF the
river.
But supposing, as some of the Demo
Gratis contend, that we should. substitute
Il greenback currency. In that event,
we would be limited to the present volume
of greenbacks, as under the decision OF the
Supreme Court OF the United States we
could not enlarge the circulation in time
of peace. The greenbacks were war
currency, issued under the war power OF
the government, for the purpose OF self
preservation-and not to be made per-
petual and increasing circulation as money
in time of peace Their legal tender fea-
bure was only sustained by the court under
the war power of the Government. 1t IS
not all likely, therefore, that the court
would sanction an attempt to enlarge the
volume to the extent of the present; Ma
tionai bank currency. Therefore, in this
view OF the case, we should be restricted
TO the present volume OF grecnbackz, and
to gold and silver, in case the National
banks were wiped out by the Democratic
party.
But aside from this view of the case, there
is an other view that concerns the security
of depositors. The National banks have
what is known as double liability on the
part of their stockholders,sthat stands be-
tween the depostors and loss. Iti seldom
indeed that depositor in one of these
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