The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1886-12-09
THE NATIONAL BANKS.

The question as to what ought TO be
done to preserve the national banking
system from destruction need not give
congress much trouble. The real ques-
tiOn is whether it is worth while to do
anything about 1t. At any rate 1t is
worth while to cOnsider that the cOun-
try could get along very we'll If the
national banks, as banks of issue, were
to 60 out Of business altogether. 1t Is
of course true enough that as the
national debt Is paid the national bank
circulation will be withdrawn, and
when the debt is paid and perhaps long
before 1t is paid there will be no
national bank notes or no national
banks as banks Of issue. The process
of debt reduction will necessarily wind
up the national banks, and congress is
asked to 40 something to avert this
otherwise inevitable result. No doubt
congress can do something to save the
banks, but the question Is, Why should
1t?
Suppose the national bank notes
should be gradually retired as the debt
Is paid, and suppose that In ten years
this currency shall have disappeared
altogether, will any harm be dOneP Will
the country have suffered any incOn-
veniencep In view of the rapid accum-
ulatlOn of currency from other sources
there need be no apDTehensiOns that
any scarcity Of circulating medium Is
probable, even though the notes Of the
national banks disappear entirely.
0n July l, 1886, the coin circulation
Of the United States amounted to $685.
320,031 gold and $398, 7S4 223 silver, or
1851, 104 ,254 in gold altogether Besides
there Is q circulation of 1916, 73S, ,391 In
treasury notes, making a total of ST.
200000O00, exclusive Of the national
bank notes, which aggregate 1928 672,-
6l0. So That the total of national bank
notes Is only about one fifth the aggre
gate circulation outside of them. Now,
during the last year, there was added to
the coin circulation OF the country $34,
or $50 in gold and $30O22, BAT in silver,
or $64 ,099 727 toge her. Hence, if in ten
years the national bank notes should be
retired, the accrettOn Of coin In the
meantime at the rate of last year
would amount to $640, 1000 600 or
very nearly three times the
amount of the bank notes withdrawn
from circulation. Even If the annual
movement of gold aud silver CON slOnld
fall to one half what 1t has been for
several years hitherto the aggregate
will exceed the total amount of national
bank notes by the time the gradual
process of debt extinction has made
an end of the national banking currency
altogether. It will appear, therefore,
that there Is no danger of any lack of
currency, and the very best Of currency
though the national banks should cease
to exist as banks of issue and the ma
tiOnal bank CURRENCY be retired as fast
as the payment OF the debt makes neces-
s8ry.
So the real question and the only
question that 1t il worth while for Con
gress to consider Is whether or not there
Is any good reason Tor interfering with
the gradual extinction Of the national
banks or banks of ISSUE as the debt Is
paid. Why not let the process 90 on in
Its natural course to its inevitable endP
And If Congress should decide to do
nothing az all with respect to any
method of perpetuating the national
banking system on its present basis,
would there be any real less to the
country or any harm to public inttIests9