The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-02-13

llllll WI ll ~ ltefllily u Inc tillll,!ii
l1t the pihiic idalt at per o9nt; elat
the provialons 81 the bill allowing ms
tinaRl hanks g iefuc cifciisaflen up 70
the face value ii bonds and the reduce
ton 81 the tax On circulation will sbe or
such adVaui0Fl 70 the banks that they
will at once buy the per cent ppnNs
Ind take out circulation on them.
f'I1e circulation, Of national banks .
not 80 prQfitahle nor the source OF uI!-
told wealth a8 come SUPPOSE. the eapl,
Utilization Of national banks on the lst
OF December last, was about $500, 81 80.
TO which may he added the surplus ana
undivided profits which could sbe con-
verted into capital n II would pay % 90
So sSl1 900 $50, milking an agBregate OF
Soai, 6t5, e2S, while the amount Of ma
finnal bank notes In clroulation secured
BY bonds VAS only s2li7, QQoupp. y y evi-
dent II circulation was as prahtae'e ~
claimed and believed by many, ",
banks would take out an amount equhi
70 the full amount Of their surplus an9
capital Instead Of less than One.f0urtn
Of the same.
SAFETY FTam Government Scrutiny.
"The great advantage national banks
enjoy oyer private or state banks y ny
The profit realized from circulation. lts
the 6htety that comes nom oYernIneI NJ y
al scrutiny through periodical 81
ntiOhg The fact that the goVeIt "a
at all times, through Its agents ana ON
GERS, has alithorityto examine the ooo ~;
accounts, securities and cash OF natlollt.l
banks, and decide whether or mol In q
ate IN q. sound condition, Induces conn
denee in them. and Is worth more than
the profits OF note circulation.
'sEladuclng the tax on circulation one
half pee cent, aud permitting the Issue
Of hank notes up to the face Nalue u
9 per cent bonds may not be suI1clen,t
inducement to national banks to Largely
increase circulation, even II all the cir
crlatlon could be kept outstanding. a
bank with 100000 circulation would get
5000 income from Its bonds; from thls
amount would be deducted tax. $500, anu
expense OF redemption, $l2b: total. S62a;
leaving an annual proht OF Sl,Slb' lWo
conditions are necessary TO TINS resulI;
one is that the circulation must De "
outstanding. and the other Is that uh Sy,I
no circumstances shall the bonds ta4l
below mar We can not guarantee theSe
conditions by legislation, We cannot IN
sure BY legisl@tion that bonds taken ny
national banks as basis Of circulation
will not full below par. and In the event
and disaster would follow,
SIN case the bonds should decline
per cent, what would be the reRultY Uh-i
der the law the secretary Of the treasury
would have to call for additional bonds
10 secure circulation. This might hap
pen al q time when the banks could not
raise money But. suppose after the
secretary OF the treasury had called TOT
additional bonds to secure circulatloh.,
and they were furnished. the bones
should suifer another decline OF per
cent. He would have TO make announcer
call. In case of protracted war our
bonds might fall even 20 or 80 per cent.
and this might happen at q time when
national banks could not depoSlt ulo NOR
bonds to secure note circulation. Fhe
bill makes no provision. and do not
know that any could be made. to meet
such emergencies.
Influence on Labor.
Then, again, securing by legislation
low rate OF interest through profitable
inducements to national banks may not
In the end be the best thing for the
country. A low rate OF interest viii,
in the long run. tend 10 make low prices
for conmoditles II The use OF money
can be bought cheaply 1t may have the
efiect to make everything else cheap
am afraid a very low rate Of Interest
would tend to reduce wages One OF
the Eiories Of the republic IS that Amer
lean labor Is the best paid in the world,
and this should be maintained. The
government. at least, should not do
anything that would have a tendency
to reduce wages. The loss 10 the wage
earners and the country at large would
be greater than the gain to the govern
1nent. We should continue. so far as
We consistently can, to do everything
to keep up tbs price Of labor. Good
wages make good, happy and contented
citizens. Wages. and high wages, is
the best method found yet for the dis
trlbution OF wealth. Ninety per cent
of the cost OF nearly every product II
in labor; therefore, the better wages are
the more money Is paid out and distrib-
uted; and general business Is better.
We are paying III wages about seven
thousand million dollars per annum. or
twenty millions daily. II a low rate OF
interest, such as proposed In the BILL
should operate to reduce wages even
oDe-hRif Of i per cent, which would be
about one-half cent on dollar. then the
loss TO the wage.earners and the coir-
try would be much greater than the
gain In saving Interest by funding the
public debt at 9 per cent.
There Is unjust prejudice and oppo-
,sition to national banks throughout the
county. Some Of the opponents TO ma
tIonni banks are clamOrOus 10 abolish
them outright: others favor taking from
them note circulation; but while agreed
In opposition they are not united among
themselves as to Just what kind Of cur
rency Or money should tRke the place
Of national bank note circulation. These
people believe that the prerogative Of
co!nlug, making. or Issuing money be-
longs tC sovereignty, and should be ex'
ercised excluslvel2 by the government
and never given To the banks. The
senior senator from Colorado (Air Tel
'ier) says Open the mlnts to the free
coinage OF silver; that this is the RENE
edy. and would supply all the needed
currency. The senior senator from Ne
vada CMr. Jones) says. in effect, let the
government Issue fat money; while
some POpulists. believe, wish money
issued against deposits OF wheat and
other farm products,
Remedies Proposed.
'If the national banks should be abol-
ished. or required to give up note cir: