New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-08
-,o,,0r. wn,cn or. admitted to be necessary in

II acguafnt with the facts are 80
by such reasoning; but have carefully examiner LIE
subject and all parties-it II noI nee
assure the members OF tins con mon
upon sn average, per cent OF prOnt annu cen
bank Circulation n based upon per cent bonds e
re , nyoa 10 All Of the National banks now organ,
Ted arising from their circulation uooS ~ Iner-
SO 800 900 annually and that The net amour, men that
81 paid by the Government TO the banks upon .,
portion of their bonds which equals me Srcui1tinn
turned 10 them loss the tax upon that , honJs
would be but 50 564.75o annually. II pei con' oo"'
are deposited 4. ,o,- "a the National
hanks hold uearl, one-third OF the le1al-ienner
reserve fand and the State banks ana ,iveI, sna
amount of cola is sufficient for the ,hs Gov
Tor redemption OF its present r%ana, of the
eruIueui u 10 issue all OF the paper cuIi"he' h an
country then banks fearing tbe tsu VI ~ ,viii
ISSUE will prefer TO mold coin or I've n"d as fpnd Tor
p ed nnion ~ rs notes increased amount OF re-
-yo. The interest upon nieh at pei cent VIII
,ne nearly 10 the amount OF net interest
nov received 10y the banEs upon Their Dond lhe ploi
",au nov adv ocated is TO substitute United States
ISL -, Of hank notes This Is impossible OF ac-
coplnlishment. mean that whe t9ls ptoJect my W
many seem judicOus and plausible IL Is an ipr"co1
THE ATTITUDE OF CONGRESS.
took some pains during the last Congress. not that
of the extra session. inform myself Of the Opinions
OF the members OF thar body upon this sunlee', anu
came 10 the that there were not six members
from the Eastern and Middle States who were in favor
~ issue of the reenback IA tho only paper currency
of the country. and in the Southern states 50 a' 40
could learn, t3er- was not one lnshDer 10 hIol W SO
sub-tltuuon believe that II careful canvass were
MADE OF the opinions OF ne presSut CV6aisSs I'm
would be found many memO-r, rom mes ~ N
and South who would favor the abohHoh OF lue "
uoual banking system. but NorI rev VINO eApc0t ~
largely norease the amount o. RIeeIIaeks low ~ af
the National banking system VIII oe -
lowed not Dy the OF more grcen0htAs' hut 10y ho
eeai OF 34I2 Of the Revised Statutes. consist
I'M, of four lines the Ststuie ocok, "hich = - ~"
ne. RAID Every Naroual banking associa-
go state banF or state baking shan pay
tax of 20 cenIum on tbs amount OF noes ol ahJ
person or of any 5tats bank st~e banking as'oGia
ftgu uspdfO
Syuth desires the repeal 0' TINS section Dtalse ~
believes that such repeal viii DE loiOWou py
Inc ORGANIZATION OF numerous bank, oi circulation
under state charters will for the ume oehH az
least stimulate the business o tnat section of the coa
nv The Els AM she North in the event ~ TIE repea
of the National banking systoIn, viii JOIN with the
south IN the repeal OF tnis section, Dut Tor derenS
reason namely, prevent the Increase OF
the issue OF Government notes; Deca9sr dne,
believe that system OF state bdnk notes.
of the worst can only injure the credit OF
individuals, While the unrestricted ISSUE OF om l.eu
States notes will he likely TO produce ne" suspensio
of specle PAYMENTS and thereby ujure not only every
Kind OF private business OuV also me cieul' VI 'H
Nation.
1 look hopefully into the future. ana during tho'e
years venture to predict that there VIII De no sus
pension OF specie payments; that the gold standard
viii prevail although the Of silver as coin issued
under restrictions will that the interest upon
the public debt viii he paid in gold dollars OF -0olQ
grains or its equivalent; that tue egtemdeI nov VIZ
disappear that the United statos noe Sii OI
rrd,WutIon rather tIan Increase; thAt ihe NAiuhal
banking system Will extend and CONTINUE; thA' uhuel
good Of finance or honest MONEY puI
and manufacturing Interests " ~ rtJo'Os ~
properily ana that there will be seen numerou. wei
bOttOmed aud welhhod American shlps III INC Plin0f
pal commercial Giles OF the world
William J. Bacon president Of the Second Ma
tional Bank of Utica. spoke briefly III praise Oh
Controller Knox's paper He SAID the author was an
Oneida boy of whom the people OF that county
were very proud. lie referred to the Controller 5
services in Office and IT, the excellence OF his annual
reports, from which congressman, II they would
study these papers would derive the greatest bene-
fit Unfortunately, the average Congressman had
not intelligence enough 10 appreciate the lmpor-
lance of Mr. Knoxs services and the value of ms re-
ports. A vote of thanks to Mr. Knox was adopted
OTHER SPEAKERS.
GEORGE s. COE on RESUMPTION OF SPECIE PAY
MENTs.
George s. Coe, president Of the American Ex-
change National Bank. spoke on resumption. He de-
sired to develop general discussion on Controller
Kuox's admirable paper. After touching on the
reasons for cOngratulatIOn because the resumption
of specie payments had been reached, he said that
the question now is whether all the conditions
have been removed which belong TO the country IN
a time Of restoration. Have all the bealthtnl conol-
tions of commerce been brought back, or lis IL only
an accidental, partial and temporary resumption
After Clancing at the last years Of abundance
Mr. Coe SAID that the reason for resumption rs tue
hapnv general commercial condition, ana not any
new policy of the Governments Contrasting the
state of things before and after the war he remarked
that before the war the banks the holders
of the reserve coin of the country. Now the United
States Treasury is the sole custodian of the whole
sum- and the banks aud the people Sc IN content to
permit the Government to be the custodian, and
tbamse yes to use the notes Of the Government for
which they can obtain the coin when they want IT,.
T. thar lie condition which wedesiTe To perpetuate1
Is that the best economical condition of the country
All the signs OF the times Mr.. Coe remarked
further point to a change of commercial empire
from the Old World to the New. In few years,
ten or twenty probably, New-YOrk aud not London
will be the financial centre of the world We have
canital in abundance and even in excess TO loan
others. The decline in EnganPs prosperity
and the almost incredible growth of the re-
sources of this country were referred to by
Mr. Coe who then asked if financial affairs in this
country were on sound basis at present, such Il
basis as should be perpetuated. The bank notes
of all the National banks rest on other notes tor
which you can get coin II you want It, Thu you
have two systems where only one is really neces-
sary What is the use OF ali that superutv 1t Is
.an illogical arrangement. One OF the other of these
syste.l 8 ought TO ne superseded Why not dispense
with all of one and let the other rest directly the
conf
Mr. Coe then presented briefly, clearly and
forcibly the well-known arguments in dcmonstra-
ton of the impossiblity of the Governments
creating property industry, and of tho worth
lessness Of paper money except a. representing
directly actual value The Government has
no power to create, though II has power to
borrow. He described tho system of bills
of exchange, and the bank transfers through
the clearing house in New-York. and showed
that in every instance the bits of paper
used In such business transactions represented
actual property. Replying tersey to the false as
sertons of the greenback advocates, he added that
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