National Republican., 1880-08-13
BANKERS CONVENTION.
An Interesting Paper by Secretary Shcr
man Presented.
Relations Between tho National and Stat
Banks and General Govern
mcni Discussed.

SARATOGA N Y, Aug. 12.--The attendance
at the bankers convention is much larger than
IL was yesterday. Tho committee on nopiina.
tiops reported and an election of officers
followed Alexander Mitchell, president of
the Marine and Fire Insurance company
bank, Milwaukee, Wis, was elected president.
Among tho vice-presidomts elected were the
following: Alabama, Thomas Henry; Ar.
kansas, Logan II. Roots; Delaware Edward
Bots; District of Columbia, John A. j. Cress-
well; Florida d. G. Amber; Georgia, William
II. Patterson; Ken ucky, w. Proctor; Louis.
lana, J. j. Tarleton; Maryland, Daniel Annon;
| Mississippi, Edward s. Butts; North Carolina
| William Il. Anderson; South Carolina, An.
drew Simonds; Tennessee, Nathaniel Baxter;
Texas, Morris Kapperl; Virginia, John Echols,
and West Virginia, j. Nelson Vance.
| Resolutions In favor of a general bankrupt
law, indorscd by tho executive council, wcro
read and laid on tho table.
| resolution acknowledging the efficient
services Of James Buell., who has been secro.
| tary since the organization of tho association,
and expressing regret that ho Is compelled by
ill.health to retire therefrom, was adopted.
letter from Secretary Sherman was read
by Edward Atkinson. 1t traced tho eally
connection of tho banks with the government.
AZ long as banks redeemed, 10 trouble onsucd,
but when banks failed tho treasury was en-.
barrassed and public credit injured by having
the notes of the state banks on hand. Large
sums ofirrcdcemablo bank-notcs vet remain in
| the mai ional treasury TO embarrnss bookkeeperS
as unavailable items. In 1916 tho sub.treasury
law was passed, and until 1861 all public
moneys were received and dsburscd in gold
and silver by United States officers Tho ma
tional bank law passed February o. 1868, in.
augurated new system. The emiuent sue.
cess of this system nocd not be recountcl. In
no case has tho value of national bank notes
| fallen below the value of United States notes,
in which they were rodccmable. The preseu /
generation can hardly realize tho Importance
Of this stability of value, which bas come 10
| be accepted as a matter of course. The value
Of state banks has constantly lluctuatcd in
mercantile centres according to the location
of the banks from ono to twelve or
| fifteen per cent. The receipt safo keeping
and disbursement of public moneys has also
been amply secured by the national banking
law Tho government deposits In the ma.
tional banks to June 80, 1880 from the begin.
ming, had reached 81, ,349, ,903, $780, from reve.
nuo officers and discussing officers, S50O,O00,.
COO. This has at all times been received, paid
out and transferred TO whero 1t was needed
generally, without expense to the govern.
mcnt. Only n small amount has been lost
Had 1t not been for tho aid of tho national
banks, tho rounding operations, SO successful
last year, effocting a saving in annual interest
Of $l9,9O7,607 would have been impossible
If it had not been for tho national
banks the money paid for the new
bonds would have been placed l.. the sub
| treasury 10 await the maturity OF the called
bonds under tho three months notice re-
quired by law and somo $3.50, i,295 more
than half tho paper currency of the country
boon locked uptO be paid outonly as bonds wore
presented. As it was called the bonds wero
gathered and turned in by the banks for credit,
and refunding proceeded without withdrawing
any currency from circulation. This was done
by banks which, during tho past three years,
have been compelled TO charge Sl0000,000 to
profit and loss from the reduction of interest on
their bonds TO secure circulation. So long MS
bauks are a necessity to the people there is no
reason why they should not be so organized
as to help the government. Tho present sys-
| ten seems capable of meeting all probable dc.
mands aud is attracting the attention Of other
nations and should not be abandoned unless u
better one eau be devised to take its place.
On motion of General Il, IL. Pruyn of AL
| bany q vote of thanks was rendered TO SecrG-
tary Sherman for his interesting paper.