The New York herald., 1878-08-09
BANKERS IN COUNCIL

Yesterdays PEocEEDISGs or TEE AMERICAN
BANKERS ASSOCIATION IN
FAVOR OF SPECIE RESUMPTION
SARAroGA. August 8, 1878
In the American Bauksrs' Association meeting 20
day J. D. vsrmilye of New York, presented an
elaborate table, prepared a the Clearing House. show
ing the disastrous effects which had been produced
and wore st menacing the country with further mis-
chief by reason OF excessive taxation OF banks He
showed how the capital and surplus OF the banks
had been depleted during the past few years, and
asked the Executive Council tike action 10 bring
the facts to the knowledge OF Congress.
The Executive Council, by g. s. Coe, OF Now York,
and g. Murray, OF Louisville, reported the follow
ing:- W."
Resolved That the opiaon this association the
Of the y Sr 70 an
to s a. b sy Sna Nv wsfi U s
try srade and general tranquility and be
restored to ths people o amsrisan Esnssrs Aasses,
return specie standard the transaction OF the
Rsoea That the Of tn. country arising from
s ss %
other and from the rapid developments OF mechsn
try Sas sfS SsDpy
in supplying the necessary m cans Tor resumption.
Mr.. Fals, CINCINNATI, anu ono or two other West
cru opposed the rssoutons on grounds OF mex
pedieucy, although approving Their character
Lockwood, Rcumona; Mr. Roof, Arkansas; Mr. Al
k,ns, Michigan; Mr.. Hays, Detroit; A Il. Moss. San
Mr.. McMicnssl advocatsd the resolutions ana snoy @
wsro finally adopted unanimously. sffr rr
PRACTICAL BANKING
8. W. RoweI, OF Matnc, read a paper practical
banking and national banks It was OF a technical
character and will DO printed in tho proceedings
CONVERTIBLE PAPER MONEY.
George A. Butler, OF New Haven. presented
q paper advocating the necessity thai IN
provision for the convertibihiy oil paper
into coin. All paper money not convertible INTO
specie on demand unsettles values aud dlsturbs In
dustry and circumstances should be allowed
to cxist. Convertibihty should be something more
the most severe tost. without causing financial dis
turbancc 10 that END the issuc OF notes OF less do
nomination than IS should be prolnbitsd. Thers
should be reserve and redemption system.
TO insure those requires system OF national DanKs.
Tue ony way have what 10 caiiea elastic currency
Is 10 the national system anu give the banks
autnority to issue notes unsecured. 80
.fa4' THE BANK sYsTEM.
George Wilson, Jr.. cashier OF The Hull Savings
Bank OF Lexington, NO., presented paper arguing
against the proprey OF the federal char
srng banks, aud favoring return to tho State bunk
GREExBAcKs AND BANK NOTES.
B. T. Nourse OF Boston, presented paper on. the
popular demand for substitution OF greenbacks tor
/ pational bank notes. with objections TO It. He said
the demand rs Tor monetary revolution me people
stopped by derision or contempt. Tho reasons Tor
the schome must be fairly considered andHan swered
by bettcr roasona The hat money scheme would be
new experiment. II has never been tried. Nowhere,
except country, has IL entered the mind OF
stamp on a piece OF paper or leather "this
is y ooiiar.'' and making IL legal ten
der could impart to IL commercial or exchangcabi
value equal 10 "a coin dollar. In old tnlos absolute
rulers when pressed forced people to use and credi
tors, II not powerful, to accept debased ooin.
Though clothed with dospotic power and able to en-
force The use Of dobascd coin they never silly
to attempt enforce the OF hat money as cur.
rency. There is constitutional power ~ tho
country to mako anything but gold md silver coin
legal tender. Redemption in gold is constant
qua against excessive paper issues for any long
time. No commercial nation can afford to employ
u currency Of money whether metallic or mixed,
that IL Of less value than tue international
money OF the world. The lenst deprecia-
tion from that standard creates disadvantage,
increasing In rising ratio with tho degree OF depro.
citation the country permitting IT, The project OF
government currency Is an old one and has becn
often and ably discussed in this aud other countries
Here tn questen has been opened anew. Elsewhere
the conclusion boon reached that the Issuance Of
paper money, included ~ the sovereign power 10
re guato money of nations, must DO delegated To
some corporate body oi sufficient wealth and
capacity fcr the duty, that Gun be held responsible
for the full performance Of all Its obllgations.
as tho government Itself could not be. II must
the true consequences Of what Is ask ed IN
The way Of tho suostiiutop oil grccnbucks were uu-
dcrstood tho demand would cease. It's concession
would inlict severe punishment not alone on those
who ignorantly ask IT, but on all classes OF people,
opprossiveiy upon those whose trupsactions
are small-the wages earning aud small trading
classcs.
Mr. Judson, OF Syracuse, gave al interesting chap.
ter OF OF old bankers IN the State or
New York whom he had known.
There viii be another session tomorrow.