The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-08-19
GREENBACKS AND GOLD.
THE HON. w. D. KELLEY, ON
FINANCE.
SPEECH AT EXCHANGE HALL.

SPEECH AT EXCHANGE HALL.
FALLACIEs OF THE SPECIE BAsIs-REvIEw OF
BANKING HISTORY IN THE UNITED STATES
CAUSE OF PANJcs, FAILURES AID PUBLIC
NEUTRALITY-SUSPICIOUS. PROPosED-THE CON
YERTrBLE 3:65 BoND-CREDIT OF THE Gov
ERNNENT-FREE AND RESPONSIBLE BANK
ING-RoITEN RAG MONEY AND SWEET Ma
TIoNAL BANK BILLs-AN ELOQUENT PRE-
sENTATIoS.
Wednesday, pursuant to appointment,
the Hon. W. D. Kelley appeared before an
assembiy in Exchange Hall which was
crowded with the thoughtful and calm
thinkers of the city who gave him most
cordial hearing whether they fully agreed
,gi.b his views or not. When Judge
Kelley arrived, the Hon. Franklin
Lenders offered motion when
was unanimously adopted that Maj.
chairman of the meeting. Major Gordon,
alter plsyiuily abiding to the fact that he
had no chair. said: will now introduce to
Won a man whose name is known as widely
as the continent extends, who stood by the
country when il was in peril, and Still stands
nv Y, whlQhasviews on hesuiject OF finance
which he Will present in clear manner
"a csther y-ou agree with him or not. Judge
Kerev tsen took the floor ana SAID;
Wv feilow-citiZans: j am here as your
cnUntrp man 10 speak to you on subject
tat Affects every ore from the highest to
Inc Lowest. the rich and the poor. 1 am
mere by Invitation TO try to answer q ques'
ton which one OF your citizens, the editor
of the Indianapolis Sentinel, has been writ
fae across the seas to obtain an answer Tor
&, Prof. Bonany Price, asking him the
cause O: the hard times. Prof.
Price Is the vspid little fellow who
was last year in this country lecturlng
around our great cities for the bankers. de
il considered high authority in England
On 5be subject of finance, but when the co
itor OF the Sentinel asked the cause OF the
hard times bs lodged the question aad pre-
sentad some oeneralities about overtrading,
that the banks had been discounting bad pa
Der and loaning money which belonged 70
dspositors. to persons who had failed, and
that the English iron trade had
not brought back wheat and wool,
ETC.. sll of which we all knew very
well before. But the professor was
too ipsincere, or else too shallow
q, explajn the real cause of hard times,
which ia the subject that l shall touch upon
,o.night. The direct cause of the financial
pressure is II denial TO the people OF an
-,lsduats amount of money with which TO
trsusscr the business OF the country and
permitting the banks to discount their
loans on unsound securities, their
means consisting OF the money
deposited with them which belongs 10 the
people. Now. there IS SuCn bnlnS o. o
legal tender and a medium OF exchange,
with which ron pay your doctor or your
grocer and which he can use Tor similar
purpose to discharge his bills and his oeoss.
Euglaud il her grea. bank allows S1O,OOOOOO
or IA 600 900 pounds sterling TO De issued On
the credit Of the government and no more.
After that no more bills on the Bank OF
Englsnd can be Issued WlthouS
an equivalent in solid golo'
some country banks are allowed 20 lssgo
-msil amounts Of circulating notes, out IN
reality only gold and the Bank OF England
,otss are a legal tender. The idea OF carry
irc on TIE business of the country on TINS
h-sis OF currency is of course prepcsCeIo 0,
rreGie has TO bn resorted to. The 1OOOOOOo
goes as far as it can, and the rest must be
run on the credit of individuals.
More than 100000 OF such credit
was found Iateiy dependent on the
insolvent firm of A. and W. Collie, 20.
(Other instances were named of the lste fali-
ing frns) Under thissystem the money at
the bottom ia a very small unit, and the
credit expands as the system rises, so that II
NAV De likened to an inverted Pyramid
standing on its agex. Let me here intro
ducs q paper showing the capital ana the
credit OF the banks OF England
TABLE sHowINE THE LEADING ITEMS OF
TaIRTEEN LONDON JOINT STOCK BANKS,
DECENBEa 81, 1874.