Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-12-06
bank NOTE CIRCULATION
The View Of Comptroller Of the Cur
rency Eckels,

Presented at Great Length in His
Annual Report = Recommends
Amendments to the National
Bank Act, and is Opposed to the
Issue of Papsr by the Govern
ment.
Washington, December 5.-The an
nual report of James H. Eckels, comp
troller of the currency, for the year
ended October 81, 1897, opens with a
brief review Of the history of the leg
islation which constitutes the present
national bank act, and invites the at
tention of Congress to amendments to
the law recommended in former re-
ports without specifically repeating
them.
On the subject of bank note circula-
ton, the comptroller says:
"It is noticeable that in all the
changes which have been brought in
the national currency act from it's in
ception to the present time, the fea-
ture subject to criticism, but which
was intended should constitute the
principal benefit to be conferred, has
remained comparatively unchanged,
namely: the note issuing function.
Whatever justification there was in
the first instance for restricting the is
suing of notes against the bonds of
the government deposited with the
treasurer of the United States to 80
per cent. of the par value thereof, it
LONG SINCE CEASED.
In the report of every comptroller OF
the currency during the past twenty
years, the wisdom of changing the ex-
listing law so that the banks, and
through them the communities in
which they are located, might have
the additional benefit of an added
loanable capital, has been urged. De-
spite all this, the law still remains
without amendment. Not only should
the bank act be amended in this par
ticular, but Congress should seriously
consider such change in the method
of bank note issues as will enable the
banks of the country to more adequate
" meet the demands Of trade and
commerce in all sections of the coun-
try. The business OF banking, like
every other form of investment, must
be made attractive to capital. IL it
is placed upon a footing different from
other undertakings, embarrassed
through unnecessary restrictions and
deprived Of
PROPER SOURCES OF PROFIT,
the result cannot be otherwise than
that investable capital will seek other
means of employment, and to such
extent deprive the people of the bene-
fits of the agency most requisite to
commercial activity.
'It is considered by, every great
commercial government, except the
United States, to be the sole province
Of the banks to issue the paper which
circulates as currency. The belief II
and safer than government paper
currency prevailed unquestloned IN
this country until, under the apparent
exigencies of the war, the government
undertook to issue paper currency.
Even under such circumstances the
promise was always given, however,
that it should be retired at the earliest
practicable moment, and the admission
was freely made that it was neither
.Nise measure nor safe form of cur
rency.
Between the competition of the
government note issues on the one
hand and the unnecessary restrictions
: imposed by law upon the other, to-
gether with the increasing price Of
bonds required to be deposited as Sc
curity, the note issuing function of the
banks has been permitted to become
MERELY AN INCIDENT
to the conduct of the national banking
associations of the country. 1t has
been seriously suggested more than
once that the bank note issues be done
away with and all paper be issued by
the government instead. The danger
cf srch course is not to be overesti-
mated. The experience of every gov
srnment has been that governmental
currency paper is a source Of weakness
and danger In the United States,
where there has been the nearest APP
proach to success, with the volume Of
the federal paper comparatively limit
ed in amount, the credit of the govern
ment has been more than once put to
jeopardy through it, and the business
interests of the country subjected to
unnecessary loss and confusion.
The argument that the government,
better than the banks, can provide for
the redemption Of paper note issues,
will not stand the test of careful