The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1886-11-29
NATIONAL BANKS.
THE coslprRoIIER's REPORT.
The Present Status of the National Bankiug
System and Its Relation Ito EGovsFn'
msnt Bonds-The PeFpStuatIon OF
the system-what It Relies On,

WASHINGTON, D, O., Nov, 9s.-Hon.
William l., Trenholm, Comptroller OF the
Currency, concludes his annual report to
Congress with remarks on the subjects Of
the National bank system: The present
financial prospects Of the country inducs
the expectation that the funded debt will
be paid off as fast as the bonds mature
and In consequences question has arisen
what changes should bs made In the Ma,
tionRl bank gystem in order that 1t shall
not suffer deterioration or destruction
upon the withdrawal Of the support upon
which 1t is based by the present laws
which require every bRnE before begin
ming business to deposit certain amount
in United States Bonds. The payment OF
the three percent bonds, the maturity IN
1891 OF the 4 percent bonds, amounting
10 $3.50, ,0O0,0 900 and in 1907 Of the four
percent bonds amounting 70 near
" $73S, 100000 have combined 10
produce prospective scarcity In the Sc
curities available to tho banks as baEIH
OF their corporate existence, and this ia
ref scted in the advance Of these bonds to
the premium 80 high that every day their
purchase is more and more enormous.
Banks now holding 3 percent bonds aud
newly organized national banking 1850
Citations are forced into the market Us pur-
chasers OF the percent or the ! percent
bonds, and this constant demand, in con-
nection with the prospective scarcity al
ready referred to hustains and tends still
further to elevate the premiums on these
bonds.
-rAsthe time approaches for the payment
OF the 4 percent. bonds 1t Is reasona'
BILE to expect still greater demand for the
4 percsnts, and 1t Is a question ot aerlous
Importance whether tho banks can afford
to hold or to buy percent bonds after
1901. In the present aye business men
try to anticipate future conditions, and to
provide we'll In advance against forsHeen
contingencies, hence 1t is to be expected
that the banks will not wait until the ap.
proach OF 1891 TO shape their policy with
reference to the continued holding OF
high priced bonds.
For this reason it is not 30 early now to
consider what legislation may be proper
to remove tho elsment Of future uuCer-
tainty from the National banking system,
and looking to the possible consideration
Of the eubject by Congress, respectfully
submit tue following statement Of the
question Rs 1t arp.arH from tho point OF
view officially occupied by the ComptroI:
| Ter Of the Currency. The fundamental
postulates underlying every banking sys-
lem established by law, whatever be its
form, must necessarily bs: First-That
banks promote the federal welfare Of the
community and HeCond-That the par
ticular system established by law is the
best obtainsbie under the conditions pre-
yaIllng at the time and place. These pos'
tulates, therefore, underlie our National
banking laws.
toned Ripce 10 people In modern times
have ever rlaOn TO civilization, or MAIN
tanned their civilization without banks
and, least OF all, can II be questioned In
this country where, bssides 2SS National
banks now Ia operation, we hAys over
600 State banks, saving banks and prt'
yate banks and banker, whose operations
extend intn the minutest ramiacstiouS Of
the smployments and resources Of our
8O,0OO,0 600 population.
The second postGlsts involves the queg'
tion whether the present National bank
system should be preserved Gnd, 3d.
whether 1t is good enough as II is, o.
whether II can be improved.