The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-01-11
III FuTrRN or nANKINa.
Extension Of the Charters OF the Ma
tl0uAI Hanks.


Extension of the Charters of the n"
l'on"l hahN =.
In yesterdays special washington ois'
patches to the lSrELilosNcEH inc beginning
Of the agitation that looks 70 Inc Ie'cl'ar'
tering, or extension oil present charters,
Of the National BANKS WIS noIeu 10 having
begun in the House by the lhtrouu ,'s' VI
ability Mr Grape, Chairman Of 'ne Gcn'
mittee on Banking ana Currency cooking
TO the extension oil the present charters lot
twenty years.
ltseems now us II ms matter woulu w
one o. the most important SUBJECTS 'hS'"fe
likely TO engage the attention oil congress
during the present session. II IS one IN
which the whole country must naturally
teeta deep interest One OIL our exchanges
recently went into an examination Oh .ho
history Of National banking IN TINS country
that strikes US as continuing muon ihiotna'
ten that would interest the readers OIL tue
lsTELL'oENcER ut TINS Tune
The system was established IN February,
1868. On the iirst day oil November iast
the numpeFot BANKS had reached = 'Oo'w4t'
apatd up capital OF S485, 7S5,8S5. Daring
the wear which ended November /, eighty
N, T., -, ,,,o.o- o,,,,,,;,oa .,d ,wor,v.
e AsH N''''' ''" w.. "
Elk yolnhtArlly ulscontlhuVu Ilelt pus'less'
National banks arc nov located in every
STATE oftbe Union exccpt Mississippi. and
..'..., ,r,o,.,.s.,, .,,on,,4 A -;,or, S;rco tho
5 etSts oAI.P' 4A''' ,n 'i'e
establishment OIL the system, Sfu Drinks
have gone into voluntary liquidation, and
es have heen placed in the hands of Ye
; y - 1870 - ;n.,lyoro,.
VelYsie w "1eV"t' u t'''o''1!
The aggregate amount Of losses 10 Inc
creditors OF insolvent National banks dur
3n. the eiyhteen voar. that the system Inns
:. so !, "a ooo oI,o,,. 90 10
peel lneAls'euee Is Fo'"1VIVVV,oi" OO"' S"1''
cooper year. Twenty-one OF the lnsoivent
banks have paid theircreditors in full, and
t,,,y ~ them have mid moro than IL ne,
-. - - a.. -.
cent eaen. III nt1y-'litee INSTANCES Tue III,
dtvidual liabilities OF the shareholders OIL
insolyent banks have been enforced. From
I,,n, 10 1900 n NovOr,bNr 1881 there
SA''S 800 ~
Were no 4alluFes ~ all
No banking system, in any country, can
make u better showing than this Consld'
ering the vast scope and volume OF tho
business transacted, tho amount oil loss has
been tritling. The failure OF the Glasgow
balk alone was more catdmttots than have
peen atl our Natonal oank failures To-
+nt pomer"U Is 'F bsn fa Which faiied n few
Years ago in Germany. 1t is to be further
observed that the holders OF National bank
notes nave ,S; never lost = penny ~ any panE
ara iost as Good rs those 10 Of any other Tb@
Government is also lust as secure against
loss as the note.holder.
lle significance OF these iacts is empha.
sized when we contrast with them the con.
dition OF things that existed under the old
State banking system. Under that system,
bank failures were of weekly occurrence.
The notes OF each particular State were dis.
counted in every other State, and il was as
necessary then to buy gold in order to
travel without loss from one State 10
another as it is now when one goes abroad.
Every person doing any business ut all
was Obliged 10 have "Detcctor," not only
asa means OF protection against counter
felt notes, but ior the purpose OF keeping
posted rs 10 the rate of depreciation Of
bank paper. Tens Of millions Of dollars
were lost to the people by the failures OF
wildcat" banks, while the losses in tho
way OF Inconvenience and trade restric.
tons were vet far greater.
r1,a uv.to,n ~ National bort,;,,,,- mn,
n
yet nave some uelects IN II WHAT system
has not ? Bat no system has ever pro
dncad better results The banks can lend
s,,l,, M ,,,,r,or., so.,,.;t,, o,5 M, ~, .o,,
0tJ w t'''SU''''' 'SN'' ''AtA ~ VII ~"
estate Onlv Ten per cent Oh thelr capital
can be loaned on accommodation notes, OF
other than actual business paper, to any
one person, firm or corporation. They
cannot lend upon their own circulating
notes Of stock. They cannot change more
interest than the State laws allow. 10 the
General Government they must pay taxes
on their capital stock, deposits aud cirCuln-
ton, and to the States they must pay the
same taxes as other Cash capital Share
holders are individually responsible for all
contracts debts and engagements Of the
bank to the full par Waite OF the stock.
Z Losses and bud debts must be charged up
before dividends are paid, and a coin re-
z serve must be kept on hand equal to Ger.
tain proportion OF tue deposits, and no
preference can be given among creditors
in cases OF insolvency.
The principal argument against the banks
Is that u cheaper circulating medium than
their notes can be furnished by the Gov.
eminent, Were this true, the Government
would be loser to the amount Of the taxes
itreceives from the banks The same is
true OF the States. The total amount Of
Z. taxes paid BY the banks in the year 1879
was 1863, 1893; OF which more than hall
i,Scas. t,aSA ;ntn tft. ~"&tnMa Sto,e trsvS,,r;as