The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1900-02-23

Of France, bearing 3per cent, Is oitener
. per cent below par than at par; the
German imperial loan is selling IRON
10 to IL percent below par.
Havingln mind the failure Of all
these Governments to maintain at par
for long time even , per cent bond,
nowwas ltpossible for thecoinmittee TO
reach the conclusion that The United
states could at one bound 60 forward
and accomplish more than any other
Government has ever been able To do :
In my Judgment the refunding scheme
ms presented in the sixth section Is TOO
optimistic. To adopt this section
would be running great FISK. we
can not hope TO do in the matter OF
our finances what all other nations,
especially Great Britain, the richest
nation in the world, have failed 10 40.
She has never reached a standard us
ow as . per cent for her national Dor
rowings. 1t seems TO me that we
should be sure of the rate OF interest
on which thcpublic debtca be funded
and maintained at par, ana make no
mistake in this regard the conse-
auences of failure would be disastrous.
III would be almost IL calamity for TINS
Government to refund It's bond ut 2
per cent. and later on, finding II I'M
practicable, be forced to refund at
higher rate Of interest. Such falltlrc
would be not only humillating, but a
national disgrace. 1t would destroy
confidence and impair the national
credit mt home and abroad. 1t would
hurt the bill, should it become u law,
in its other provisions. and give to the
opponents Of sound finance and stable
currency anargument against the gold
standard.
The chief argument Of the distin-
guished chairman in support Of the
refunding feature Of the bill is based
largely upon the supposition that ma
tional banks will aid materially in the
funding of the public debt, at 2per
cent: that the provisions of the bill al
lowing national banks to issue circula-
ton up to the face value OF bonds and
the reductiOnof the TAX on circulation
will be of such advantage to the banks
that they will at once buy the per
cent bonds and take out circulation on
them.
The circulation OF national banks Is
not 50 profitable nor the source of un-
told wealth rs some suppose. The
capitalization of national bankson the
LIST of December last was about s620,-
5l6, 10, to which may be added the
surplus and undivided profits which
could be converted into capital If IL
would pay TO do SO, $34l ,099.3s3, max
ing an aggregate of 1861 ,6l5,62s, while
the amount Of national-bank notes i'll
circulation secured by bonds was only
320T 100000. 1t is evident If crcula-
tion was rs Profitable rs claimed and
believed by many, the banks would
take out an amount equal to the full
amount Of their surplus and capital IN
stead Of less than one-fourth Of the
same. Speaking from some experience
gained by being interested ina small
way in national banks, | do not think
national banks lind note circulation
on the whole SO profitable that they
would makeany great effort TO prevent
its being taken from them. surely
would make no opposition, especially
if the banks could be assured that as
sound and safe a currency could be
provided to take the place OF note
circulation.
The great advantage national banks
enjoy over private or state banks is
not the profit realized from circula-
tion. but the safety that comes from
Government scrutiny through period
zeal examinations. The fact that the
Government at all times, through its
agents end officers. has authority to eX-
anime the books. accounts. securities.
aud cash Of national banks, and de-
eide whetheroruot they are in aSound
condition. induces confidence inthem
aud is worth more than the profits on
note circulation.
Reducing the tax on circulation one
huli per rentand permitting the issue
Of bank notes W 10 the face value OF ,
per cent bonds may not be a sufficient
tnducemcnt to national banks to
largely increase circulation. even