The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-10-11
BANKERS IN CONVENTION
annual Meeting of the American AS
ISOLATION at Louisville.
views of President Coe ON the Questions of
New Basis of Banking and the
Coinage of the Silver Dollar.

York called the convention to order, and an
nounced prayer by Rev. Charles Craik. of
Christ Church, Louisville. After prayer,
President Coe came forward to read his an
nual address, being received with applause by
the convention.
THE PRESIDENTS ADDRESS.
He at once proceeded to read his address.
Following are Mr.. Goes remarks concerning
new basis for banking, and his observa-
tions on the silver dollar:
We are confronted with the fact that not only
the paper circulation and currency of the coun-
try. but also its coined money, is subject TO early
and radical change and revolution The crisis
may not be immediate, but IL is sufficiently I'M
lniuent to awaken attention, and we are none
too early for its serious consideration. The ma
tional currency act, passed in 1868, permitted
them have az Feae6ed the mis Of sher iife2anG
about one-half the existing institutions $780,
representing more than half (S1S6, 0oOOOOl tine
outstanding national bank circulation, Will ex.
pre in 1884 and 1885, andit is a coincidence OF
great significance that more than half this
amount of circulation is secured by per cent
bonds 1902, 900, 000), which can be, and is be-
ing, paid off at the pleasure Of the government
and which WILL to great extent, be called in
within the intervening period, under the neces-
sary operation of existing revenue laws. Will
these banks renew their existence under the
national system, with the necessity of investing
capital TO protect circulating notes under their
new life at the rate of 20 to 80 per cent premium
extent prefer to relinquish their currency
and retire from the systema And, If
so, with what commercial results to the
country, or what substitute will be permitted
for such purpOse2 The idea of nationality
throughout this broad land has been strength
ened by the eventful history of the last few
years, and much more so by the immense ex-
tension of railways and telegraphs, which. pay
ing no respect whatever to State lines, and
traverstng them in all directions, have woven
diverse parts of the nation inseparably together
into social commercial and financial unity. This
national sentiment. potent and all-pr6-
valng, will make 1t forever difficult, if not i'm
possible. to remove the existing restriction
upon private currency issues, and will prevent
q return to the ancient and heter ogeneous State
systems, and it is hoped that the people of this
great country have irrevocaoly pronounced
against the greenback heresy which crept In
during the agonies of dismembered nation,
when its constitution was strained and tortured
by civil war. The danger lies in delaying the
subject until necessity compels some hasty and
rash legislation.
1t IS WE'LL also, TO bear in mind, that the
thread of utilization so ingeniously introduced
into the national system, whereby banks In the
country at large are hound by interest TO those
in the redemption cities, when once weakened
by many retiring members, may suddenly dis
member the whole organization. If so, what
will take its place9 The present indication
by establishing banks of smaller capitals and
limited issues, but this does not meet the public
But equally, if not the more important fnan-
cial question before this nati0n is the silent prog
ress of the congressional mandate by which
two millions OF dollars. containing each 412ls
and buried In the vaults of the treasury as cash
in hand. These dollars are not created in
response to any commercial demand. In fact,
commerce repels them. Yet the mandate Is i'm
perative and memorable. They must be pro-
duced in defiance OF all rules which govern sup
ply ana demand. Congress has solemnly de-
creed that commerce shall want at least two
million silver dollars month. These coins have
accumulated, and accommodating, in over
whelming quantity, until new vaults OF extra
ordinary capacity, like artificial silver mines,
nave mad to be- constructed to contain them.
lie side side with gold dollars. under a
reign of law commanding them to be OF equal
value Yet the treasury, which executes the
law, declares that they are not, because it is
daily purchasing the contents of one of them for
81 to SO cents with that of the other for 100
cents, and with seven dollars of tile one it is
making more than eight OF the other And the
newspapers all over the land daily declare this
to be the ID difference reno in the commercial
is the absurdity of the claim that
TWO pieces Of metal Of such confessedly unequal
intrinsic value can, by any miraculous force of
government stamp. be- instantly endowed with
equal power for paying Just debts. Here, then,
two coins of the same denomination. yet of
such varying inherent power, cOntending for
supremacy, the weaker one sheltering it's ac-
knowled ged defect under the strong arm of this
great nation. The American eagle against JUS
tce aud against the world. Can such an anomaly
constitutionally exist in this free government
Here are two weights of different ponderosity
two measures of varying LENGTH both legally
CURED to mete ont equal Justice; two ehronom-
eters keeping different time, both legally APP
pointed TO regulate the hours of labor, and this
most remarkable act is done before the world,
v, d
ing in wealth, and holding commercial relations
of vast magnitude with other nations of the
earth. The change was inaugurated under the
assumption that by launching boldly into the
experiment, these two once equal, but now diff
fering values, would return again to their
cient unity; but they do not. On the contrary,
they ohstlnately further separate, and refuse to
obey the mandate even OF the American Con-
gress 1t was omen question whether the
somewhat sudden change in the commercial
value of silver bullion brought about
by natural events, such as the cost
i've legislation of European states. But there
can be doubt that If the relative value of the
two precious metals to each other so dis
turbed changed by the suspension of the
coinage of silver in one great European state,
in the compulsory act of the United States Con-
gress could only give market here TO the thing
prohibited there, aud so not only relieve Europe
from the absolute necessity of reconsiderlng the
situation, but throw upon this nation the whole
Inconvenience and responsibility of changing it's
measure of value from gold to silver standard,
and subject us to the immea surable conse-
queDces of the social diseord and the intarna-
tional disadvantages which our commerce must
suffer by the change. While, therefore, COM
merce securely holds on Its independent way,
these dollars increase In volume, and the i'm
pending conflict of standards casts its long
shadow over the business of the nation.
In enforcing the introduction of silver dollars
commercial standard against the
natural and instructive Fepugnauce of banks to
become the medium of this great revolution,
Congress- has decreed that no national bank
sl all be member or Clearinghouse association
which refuses to receive silver certificates i'll
payment OF balances"
This law is expressed in ambiguous words,
which render its meaning at least doubtful. But
accepting them for their proha BILE intent, great
er difficulty becomes apparent, because
First-Silver certificates are not legal tender
In payment OF debts.
Seeond-Congress certainly cannot deprive
banks of their right to claim lawful money Of
each other. or compel them accept through
clearing houses what they cannot enforce over
their counters upon their own creditors.
Thrd-These balances, to be legal money,
hpp