St. Paul daily globe., 1891-04-17
BUSINESS PROBLEMS.
The Commercial Congress at
Kansas City Wrestles With
Them.
Liberality With Railroads and
a New Bankruptcy Law
Favored.
Judge Widney Elabora tes a
Proposed National Money
System.
The Commit tee on Resolu-
tiOnS OiSappan on Imnop.
The Commit tee on ResOlu-
tions Disagree on Impor-
tant Questions.

gress assembled this morning. Bishop
liendricks opened the session with
prayer. The days programme was
then Immediately entered upon.
James Peabody. Of Chicago, read a
paper on railroad pools. Gen. Charles
W. Blair, of Kansas, read paper on
transportation as affecting commerce
and finance. Mr.. William E. Scweppe,
president of the wholesale grocers' asso-
citation of st. Louis. spoke on tranSpOr-
tation. The idea had long been eX-
pl0ded that railroads were private prop
erty. They are now recognized as pub
lie trusts, and it was just and right that
those trusts should be regulated
for the benefit of those who
held the bonds. Senator Cochrell.
of Missouri, spoke from the stand
point of the railroads and explained the
difficulties in the way of their earning
sufficient money to pay honest divi-
denGs on the actual capital invested
He thought railroads were due to re-
ceiye as much favorable consideration
as any private business concern. G. S.
Dietrichs, of Hastings, Neb, read a
paper on transportation in support of a
resolution introduced by him. The res
OlutlOn provided that the interstate
commerce commission should have Su-
pc rViSiOn and limited control of the
railroads. State Senator SWitZler, Of
Nebraska. said that this question of
transportation was the most important
before the congress. He advised that
the congress consider the matter thor
oughly and attempt to propose RENE
dy. Ii was well TO air grievances, but
it was better to provide remedy. He
had no remedy to suggest, but out of all
The Remedies Proposed
in the past he believed one remedy
could be found. James Madison, of
Missouri. speaker of the lower house of
the legislature of that state. hoped the
congress would be liberal with and tol-
Grant Of railroads. AT the afternoon
session Jay l.. Torrey, of st. Louis,
Laws" and devoted particular atten-
ton to the subject of bankrupt law.
A comprehensive law on that subject,
he said, could not emanate from any
source except the national legislature,
because the federal government had
power to enact such law, aud because
the states could not impair the obliga-
tions of contracts. There was no deny
ing that there was a demand fol-
new bankruptcy legislation by the
masses of tie people of this
country. The demand was that
congress should without further de-
lay pass a law which shall prevent
fraud. decrease the number of CONNER
clal failures, protect debtors from pre-
clpitate and unwarranted action on the
part of their creditors. prevent credit
ors taking unfair advantage of each
other, and provide for harmonious,
equitable, speedy and economical ad-
mlniStratlOn of bankrupt estates and
the prompt punishment OF debtors who
have been guilty of wrong, and the dis
charge of such as have been the sub
jects of honest misfortune. Sidney
Clark, of Oklahoma. read a paper on
the Indian question and the opening of
Indian lands. Hon. A. J. Warner, of
Ohio, addressed the congress on the
subject
s'UelatfOn OF Money to Bank
CreditS.,,
He defined money to be that which
has general acceptance in exchange for
everything else and in the discharge of
obligations. Bank checks were money
and bank credits were money. There
should be limit to bank credits. State
banks 10 longer had power to issue
money. but they created money by the
issuance of bank credits. Since they
arrOgated to themselves the function of
the state they should come under state
supervision. At present the bank cred
its in proportion to actual money in the
| banks was as from five to seven to one.
Judge Il. NJ. Widney, Of Los Angeles,
Cal, read paper on "a National
Money System" The circulating me-
dunn must be increased, said MI Wild
ney, sufficient to meet the growing
population or the business of the
country must be killed off until it is
| within the compass of the present circu-
latiOn. There was not enough money
in circulation, and want of money caused
Stringency in the money markets. Sew
| eral remedies for this condition have
been suggested at various times by
various classes of the people. Some
wanted free coinage of silver. Free
coinage would not accomplish the de-
sired results. for the population was in
creasing too fast. The great direction
to free coinage was that the annual
product of say S46.000,000 worth on the
market when coined represented S64,-
000,000, or a profit OF SIS, S,000, 1000 to a few
silver producers. That was of too great
local benefit to be of any benefit to the
whole people. Another remedy sug-
Z -
government of fifty-year 2 per cent
bonds. The speaker dismissed this sug-
gestion as improper, impracticable
and
Robbery Of the People
for the benent of the banks. Another
plan had been urged OF a national clear
ing house. The fatal objection to that
was that it would place the money
power in the hands Of few as monOp-
oily. The Farmers Alliance scheme of
loaning money at low rate of interest
secured by land had some good points.
but it was too local and partisan a
| plan to be acceptable. Continuing, Mr..
Widney said he would have a system
based upon the authority of the people.
backed by the wealth of the people and
,, administered for the benefit of the
whole population. using all the gold and
all the silver and supplementing their
| use by legal issue of from $40
to S25 per capita. Could congress
make paper money legal tender?
The supreme court at different times
had decided that it could and again
that it could not. Ruinous imitation.
constitutional reputation threatened
change of the gold dollar as the meas
! ure of value were the dangers to be
contended against. In order to over
come these dangers and to give his
SYSTEM stability which any financial
system ought to have he proposed the
following amendment to the constitu-
ton of the United States:
Section 1. A national currency circulat-
ing medium Shall be issued TO the amount of
S20 per capita as shown by the census of
1890 and by each succeeding census; for the
proper redemption of which when required
the resources, the property and the faith of
the nation are pledged, for which redemp-
ton congress by two-thirds vote of each
house may provide for the collection of
government revenues or taxes III gold and
silver coin.
See p Said currency, with
Sold and Silver Coin
of the United States of present weight an =
fineness. the gold dollar being the standard
or unit in values and such notes as may be
issued i'll lieu OF gold or silver coin and i'll
bullion held exclusively for redemption
thereof. Shall constitute the only legal money
of the United States, aud shall be received at
par in satisfaction for all obligations for the