St. Paul daily globe., 1891-11-12
FOSTER TO BANKERS,
Secretary Of the Treasury Re-
views the Silver Law and
It's Results.
Figures and Arguments Are
Addueed to Back His
Opinions.
Master Workman PoWderly Is
Still Popular With the
Knights.
Farmers in Congress Adopt
Resolutions on Various
Subjects.

New ORLEANS, La, Nov, 1.-THE
American Bankers association began
its seventeenth annual convention to-
day. with about 800 delegates in attend
ance. John Jay Knox read the report
of the executive committee. The princi-
pal matter was the request of the state
associations for representation, which
was referred back to the executive
association, which first reported ad-
verSely in order that it might hear the
views of all the state associations and
report back next year. The treaSurer'S
report showed balance of S5.275.1S, be-
sides balance of S1O,692 invested by
the executive council. The following
letter from Hon. Charles Foster, secre-
tary of the treasury, was read in re-
SpOnSe to request for letter upon the
operation of the act of July IA, $500:
The essential provisions of the law OF July
IA. $780, are these: Monthly purchases by
the.government of 100000 ounces of silver at
the market price; payment TO be made in a
ury notes; the notes to be a full legal tender
for all debts, public and private, and to be
held by any national bank ASSOCIATION as part
of its lawful reserve; 1t is declared 10 be thu
two metals on a parity with each other at
the present legal ratio, or such ratio as may
be provided by law; 2,OJ0.O00 ounces of silver
shall be coined monthly into silver dollars
until July |. 1891; after July !, 1891, the COM
pulsory coinage of silver dollars ceases, and
only such dollars need be coined as are nee
essary for the redemption of treasury notes;
The provision of the act of Feb Is. 1873, re-
quiring the monthly purchase and coinage
Into silver dollars of not less than s.. OO0.000,
nor more than $i,000,010 worth of bullion. is
repealed; the moneys on deposit with the
treasury for the redemption of national bank
M Qrdn nn ir1fn a frnp
tired bank notes are 10 be redeemed from
current cash
The amount of silver bullion purchased
with treasury notes under the provisions of
the new law from Aug. Ii, 1890, to Nov. l,
1891, has aggregated 66.5SS, ,5S6 fine ounces,
costing sos 626,565, an average cost of 81 .O3
per fine ounce. From this silver 27,S4S, AS
dollars have been coined, and the remainder
is stored i'll the shape OF fine bars as re-
serve against the treasury notes out
standing. While the new silver law
provides for the purchase OF nearly
two and half times the amount of silver
required by the act of 1878, the compulsory
coinage and issue OF 2,001,000 silver dollars
monthly (and of silver certificates represent
ing such dollars) is done away with. In lieu
of such dollars. United States notes of full
debt-paylng power, redeemable i'll gold or
silver coin, at the option of the secretary of
the treasury. and having behind them prac-
tically gold dollars worth of silver bullion,
has been substituted. The new law provides
proximating ,OG0. or, dedueung the
average retirement of national bank notes in
recent years, an annual addition to our cir
culating medium of S24, ,009,009.
While it is true that the amount of money
in circulation III this country at the present
time is greater than at any previous period in
our history, and more per capita than in any
of the leading commercial nations of the
world, with the single exception of France,
| am of the opinion that owing to our rapid
growth Ill population and wealth. and the
extraordinary development in all kinds of
business a yearly increase in our circulating
medium somewhat in proportion to our
growth i'll population, is imperatively de-
manded. The issue of treasury notes under
this act affords such an increase of a per
fecuy convenient and sound currency, based
dollar for dollar upon the cost Of silver bull
lion, redeemabIe on demand in gold coin,
and with the pledge of the government to
maintain ii at par
Another object of the act of July a. 1890, was
to provide home market for the silver prod
uct of the United States by requiring the pur-
chase of a quantity of silver Spproximaling
the monthly product of our mines. Under
the operations of this law silver advanced
from S0.96 per fine ounce on the first of Jan
uary. 1890 10 S1.2l on August 10, 1899. That
it has again retrOgraded is owing in part to
the fact that large amounts of foreign silver
were attracted to this market. If the remon-
citation of silver as full legal enGer money
is ever accomplished, ii can only be done by
the action of nations Of sufficient commercial
Importance to maintain some fixed ratio in
coinage between the two metals. 1t seems
TO me that The act under consideration is a
decided Improvement upon the provisions
of the act of 1876, which it repeals. in that it
furnishes q sound currency to meet the
growing wants of our country, and has a
tendency to reduce the difference i'll value
between the two metals and thus help re-
store the equilibrium so much desired.
The committee on schools of finance
aud economics reported in favor of agi-
tating the subject and sending a COM
missioner to Europe to study the best
system there. The topic of discussion
to-day was Banking System and Cur
rency of the Future" George S. Coe,
of New York, opened the discussion
and read paper OH IAN Inside View
of the Financial Situation" He said
that the conflicts between the advocates
of white and c0iored metal seems DOW
an irrepresSiblc one. The only obvious
and practical solution is the ''reunion
in mOney of those ancient but tempo
rarily discovered elements" John j.
Knox continued the discussion.