The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1884-12-06
THE BANKING#SY
hank CIRCULATION
And lta Relation to tho Public l,ebt-Thc
\ Now York "sun" Attncks tho System,
Introduced by tho lirpubiIca as, n \.
y hut Offers Nothing Hotter. ,tI|g

! b - VI
table double.lcaded article to-day, dis.
cussed the question OF "our coming
national currency" md reacles the con-
clusion that tho National bank currency
must go and give place to u Government
currency Of coin and paper money. Tho
article notes carefully the rapid decrease
Of National bank circulation and the more
rapid increase IN coin and coin certificates.
and says; 'This will give us by 1901 a
grand total Of sl,l35,0OO,OOO OF Govern.
ment currency, against not more than
slo0,0O. 900, and probably less, supplied
by the banks. OF coursc, mucl, may hap.
pen TO modify Or prevent this result. The
condnctf Of men, cannot be predicted 50
confidently MS that OF inanimale thinrs
Ihe legal tenders may be redeemed and
Withdrawn, the coinage, OF silver dollars
may be suspended and the supply OF gold
may be- diminished ut the mines or be
drained away, to foreign countries. The
decrcasc Of National bank circulation NAV.
on the other hand, be checked by favor.
ing legislation. But the probabilities are
greatly against these events, and, as we
said IL. tho outset, il is much more likely
that the National hank notes will bu
driven out Of use altogether. AMI their
place taken by an exclusively Govern
ment currency. M l
The existence Of National bank circnln.
tloa, it must be remembered, depends IN.
tireIy upon the profit it yields tic banks
These institutions are conducted upon
commercial and not upon phlan, ,liropjc
principles. $50 long Us the bonds required
us security for their circulation hear n
sufficiently high rate OF interest they viii
Issue the notes; but so soon as lI,e ,nte
ialis below the paying point the circula.
ton will be withdrawn. At present there
are enough 3percents to be had ut about
lnr to make it worth while. to take ont
circulation upon them, but these bonds,
~ We know, will soon be paid oil, and llr
Comptroller Of the Currency tells US Tint
the 4s and las arc already too high to
make them Il profitable basis for circula.
ton. The As will surely be redeemed at
their maturity in 1891, and the IL areris.
ing in price continually, under thecomne.
tltion for them by executors, tr,s,ees sax.
ings institutions and ,mid investors. sf7
That the people OF the United States
Will, for. the sake Of the banks, sanction
any legislation by wlIiclicithcrthe nations
deot shall be prolonged or the interest
upon 1t be increased is idle to spppose
That they will permit banks TO issue cir.
cnlation on any less secure n basis than
y, United states bonds is equally incredible.
mere Is no escape, that we can sec, from,
the hard logic OF facts. The national bank
currency must go, and that pretty soon.
" the possibility Of the retirement Of the
legal tender notes by redemption and can.
collation. there is no indication. The con.
tracing Of them in this way was stopped
n 1878 by popular clamor, and, as We have
already remarked, they have remained
hxed as their present amount ever since
without efforts by either political party TO
reduce. it.4.T The, yalne NAV be sail oi'the
coinage OF silver dollars. Every attempi
to cheek or to suspend it has hitherto been
..bortiye. The West almost unanimously
fayors it, and will support it to the last,
vas to the danger that the withdrawal
Of bank circulation may cause a monetary
s'r!!ngency, concerning which so much
sollcitude has been expressed in various
slnartcrs.it need only be remarked that the
coinage Of gold and silver alone will
more than fill any vacuum TINS OCCASION.
ed, Whether the coin goes into circnla.
iation as coin or as Government receipts
Tor coin deliverable on demand is nma.
ter'al.5 here IS sure TO be circulating me-
d!um enough for the needs OF the colnlnu.
nity, At ilie worst. sUpposlng the amount
Of it to be reduced by an unusual foreign
demand exceeding the product Of Our M
mines, We shall have always, IA We huI
during the war, the resource Of legal ten.
der notes. especially since the issue Of
them has been declared by the Supreme
court to be constitutional exercise OF
government power. We shall ALWAYS do
well to remember that the natural iorccs
are often stronger than Legislation, and
that the colnnNn sense OF events con-
SANITY sets aside the trnnscenlental rea.
sonlnss OF theorists and philosopher" -