The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-08-14
BANKERS IN COUNCIL.
Assembling at Saratoga of the Amer.
lean Bankers A ssociation.
Disc usatng the Panic-SuggestIons a :
10 PreyentiOn-The silver Doll
lar-The Diminishing
National Debt.

National Debt.
SARATOGA, N. Y, Aug 14-The Ameri
can Bankers association assembled i'll an
nual convention with quite large repre-
sentation Of prominent bankers in attend
ance. The meeting was called to order by
President Lyman j. Gage, of Chicago.
Prayer was offered by Rev. DR. Harper, Of
Phi adelphia Mr. Gage delivered an in
aGgural address, which was received with
great favor The applause at the close was
unbounded
After complimenting the association on the
fact that their skirts were clear of lobby
scandals, and it had devoted itself to the
broad work of enhancing the national pros
rerity and making several practical sugges-
tions he outlined the work which still lies
before the organization, and said AT
present We meet in the midst of some
of the most interesting and important phe'
nomena OF finance, the result of what is pop
uiarly known as panic. panic is possible
at any time 1t means unreasonable fear
among the great mass Of the people At such
times men doubt everything; they dis
trust their own Judgment, and refuse
to act, or, if they act, it is in a
wild, unreasonable manner. Your mem
ories are yet alive with the financial
panic Of May last. The causes which led up
to it, the course and range Of its action, the
results which followed and will follow, must
excite our deepest interest. A proper under
standing of its causes will suggest valuable
safeguards for the future. Its course Of ac-
ton, if fairly recorded, would become most
valuable reference i'll similar periods here
after. To comprehend its full and final
effects is important to us all am not set
ting forth any new doctrine in affirming that
the true remedy for panic is of a two-fold
character: First, the maintenance, in all or
dinary times, of adequate cash reserves.
Second, a liberal use of cash reserves in times
of panic by judicious loans "Mr Gage thought
the - per cent. fixed by the national bank
act too small minimum, but in panics the
reserve should be freely but judiciously
used
He offered these four general suggestions
as a remedy for financial panics:
!. The keeping of cash reserves consider
ably larger than 25 per cent. in ordinary
periods by banks in the reserve periods.
:. A repeal of the usury laws-thus Ieav-
ing the price of money to be regulated, as are
all other commodities, by the law of supply
and demand,
) A removal of the injurious restriction
now imposed by the national bank act-a re-
stTictiou which, if observed in time of panic,
will prejudice the bank and imperil all bust
ness interests.
i The adoption of some rule to secure a
IS
panic out of cash reserves.
Secretary Marsland read the resolution sub
mltted by the executive council, as follows;
Resolved That it is the sense Of the Ameri-
can Bankers association that the coming of
standard silver dollars of 41215 grains is
against the welfare of the country, and we
recommend to congress the discontinuance of
such coinage.
George Butler coneurred with the resolu-
ton, and thought we ought to suspend the
coinage Of silver until other countries Joined
with the United States
Mr. Groesbeck, Of Cincinnati favored bi.
metallic currency, and went on to show that
for centuries gold and silver had been OF
equal value as currency. The change took
place i'll Is. or 1872 What has been done
in the past could he done in the future. II
might be impossible for the country to carry
gold and silver alone for its currency, and he
favored, under the present conditions, the
suspension of silver coinage III the United
States until other nations took action on the
subject.
a vote OF thanks was extended to Mr.
GrOesbeck and the resolution was then car
Tied
The following resolution was adopted:
Resolved, That in view Of the fact that the
articles Of association of the national banks
Of the country are rapidly expiring without
sufficient inducement for renewal, owing tC
the constantly diminishing amount and the
high prices of government bonds, upoI
| which bank circulation is based, thus
threatening a serious curtailment of the
currency Of the country; and since bank
note circulation, absolutely secured and
issued under ample safeguards for its re
demption on demand in coin, is necessary fol-
the convenient transaction of the business Of
the country, and such conditions can be bes1
| provided through the continued operation Of
The national bank act as has been attestec
| by the responses of the last twenty-ont
| years, the attention of congress of the United
States should be urgently called to tht
necessity Of Immediate legislation to mee
| the emergency.
Judge Poland, OF Vermont, one OF the com
mittee on commercial paper, made remark
| on the subject of commercial paper. He saiC
| all commerce, so far as negotiable paper wa
! connected with trade, congress had full juris
diction over it. Secretary Marshall then reat
paper on the Banking and Currency System
| in Its Relation to the Business of the Coun
| try" furnished by Hon. Hugh McCulloch, ex
| secretary of the treasury, who was unable t
| be present. He deprecates any interference
| with the existing national bank system as
national financial peril, and regards the con
! tinuance of the silver coinage as perniciou
| danger of financial disturbance in the future
B. p Comegys, Of Philadelphia, presentet
paper upon The Conditions of SAT
| Banking"
Mr. W P. St John read paper explana
tory and in support of the Potter refundin
bill. Papers on the silver and other tinancia
questions were SORT in and accepted withou
reading, by John Thompson, of New York
H. G. Yates, of Nebraska; {. Sutton, G
Massachusetts; II. B, Sigh, of Texas an
Others. Mr.. C. e. Graham, of Newark, de
livered a brief address on measures to
| adopted for the continuance of the nation6
| bopIr ppta pl4ry-pufv