The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-12-06
WHAT or tle rational Hanks.

There Ia no State or Territory 80 remote,
10 poor or 80 dull that it Is without Ma
tional Bank. During the last fiscal year
26l Of these institutions were organized
more than in any year Bince lSS5-and the
number in operation November l
was 2,522, more than we have ever had
since the National Banking law went into
operation. The whole National Bank
capital Ia in round numbers $500, 900, 600,
an increase Of S20OOO0o0 in the year.
Their circulation Is $3l5. 100000.
The Comptroller Of the Currency, the
Secretary Of the Treasury and the Presi-
dent have called attention to the very
probable contraction Of the circulation
unless something Is done to relieve the
banks Of certain present embarrassments.
The banks will not put out notes unless
thereby they may gain a profit. They may
continue 10 be National banks and con-
tract the currency to the whole amount Of
their circulation. Their circulation ia in
great public favor; contraction Of the cur
rency Is not desirable; public opinion
opposes new Issue Of greenbacks, which
would probably be declared unconstitu'
tional. The country needs and demands a
paper circulation wellsecured, stable and
Of equal value In every State and territory
Just what the National bank notes have
been found to be.
The situation "a plain and easily under
stood. OF 1852 millions Of bonds deposited
10 secured circulation 200 millions are in
three per cents payable at the pleasure OIL
the Government and, as the Secretary Gays
"llkely to be called for payment during the
next four or Eve years, unless the surplus
revenue OF the country Is diminished. The
banks say that they can not afford to de
post four per cent and four.and.a-half pei
cent bonds for circulation equal TO ninety
per cent Of their face value. The Secretary
says "there Is little or no profit on circula'
ton" 80 based, and he regards 1t as wrong
policy TO demand q deposit OF bonds having
market value as high as sl22-in reality
sl22, or a margin Of $32 TO secure 800 OIL
circulation-while money can be borrowed
In the market on Government bonds at
nlnety.fve per cent Of their market value,
Many plans have been suggested, some o.
them open TO grave object ion. For exam
pie, the people will never look with favor
on an adjustment Of the national debt iol
the mere sake OF continuing the national
bank circulation, or even for 30 excellent
an object as the absolute security Of trust
funds. But II these ends may be gained
as incidents Of good general policy the
points OF objection are removed.
The national debt represents benel
to DO transmitted 10 posterity, and POSTER
tymay well pay some part Of tan opin
ion held by the Secretary and the Presi
dent. Last year the debt was reduced by
sos, 100000. The debt 10 now $l.3l2000,'
OO0-no burden 10 the increasing mill
ions OF busy people who carry it
We should continue to pay OF, but
not 30 rapidly as We have been
paying. We can ''slow down" TO our grea
advantage. A further redemption Of taxa
ton will be possible, the bonds, probablyre
funded at q lower rate, will remain to furnish
a backbone Of bank circulation. By takint
or the one per cent on bank circulation VI
should increase the inducement 10 continue
the circulation and further reduce thu
revenues by more than three millions 1
year. The government will continue tc
enjoy gain Of about 100000 year OF
account Of the loss OF bank notes.
II happens fortunately, as We have seen
that while we are moving in the line Of q
wise general policy we shall OF the SAINT
time be able to hold on 10 the desirable
and popular circulation Of the national
banks. Whether coupons will take the
business or the demagogue view remainl
to DO seen. With politicians Of certain
stripe II Is the fashion to rage whenever Q
national bank Is named. They are pleased
to term that q monopoly in which any
body who has the money can engage
Ours Ia free banking law and in the
main good one. Certainly this country
has never known the equal Of the present
system.