The morning call., 1891-11-13
THE SILVER PROBLEM.
Coinage and Currency Discussed by Tie
Bankers Association.

New ORLEANS, Nov. 12.-The American
Bankers Association resumed its session
to-day and the silver question had the right
of way from the start.
w. P. st. John of New York read
paper in which he made the following
propositions: cease buying silver bullion
and restore to the United States the coinage
system, founded with the Mint in 1872 and
only abrogated in 1873; that is, reopen the
mnts to equally unrestricted coinage for
gold and silver, and as the best method to
allow the owners of gold and silver to re-
ceive legal tender notes at coin value in
stead OF coin at their option. the notes to be
redeemed In either coin at the Treasury op-
tlon, but the Secretary is to redeem in bull
lon at not less than the coin value thereof
on the request of nOte-hOlders; moderate
coinage to be prescribed, all the remainder
TO be coined only at the Secretary's discre-
ton.
DOLLAR FOR DOLLAR.
"All gold and silver bullion and coin re-
sulting TO be held as a dollar for dollar
metallic reserve for notes outstanding; all
Treasury notes Of the act of 1890 and gold
and silver certificates when received to be re-
placed by the proposed new notes. secured
as provided and redeemable as prescribed: ::
required to proclaim our adoption of
European coinage ratio for gold and silver
when Continental Europe reopens her
mints to silver; our mints thereupon buy
ing up our silver dollars tileu outstanding
at premium OF cents each and replacing
them with silver dollars containing 800
grains Of pure silver.
sELF-PRoTECTION.
BY such provision in our statutes, and
without international ENHANCEMENT, we
assure Europe against the flight OF our
silver dollars fer recoinage at their mints.
and assure ourselves against such contrac-
tion of our current money whenever Eu-
rope renpens her mints to silver" st.
John dismiSses the alleged impending
avalanche of European silver with statis-
tics of the financial condition of all the
European nations in detail. showing their
present need of silver money. In every
case his proposition coutemplate3 the re-
fusal of gold for legll tender notes and
their redemption in silver only if ever the
Secretary OF the Treasury suspects flood
of foreign silver for our gold.
FREE COINAGE ADVOCATES.
In opposition to Senator Sherman's pro-
nounced attitude as to silver money St John
quotes England'S present First Lord of the
Treasury, supported by the eminent profess
sors of political economy Of Oxford, Cam
bridge, Edinburgh and Liege universities.
LagelYe favors our adoption Of free coinage
al all hazards, because Sin the event of a
possible failure Europe will be a greater
sufferer than America" The British FL
nance Secretary recently commended free
coinage for the United States independently,
assuring success, and urging that no ma
ti0n OF the world is mole independent of the
foreigner" The statistics furnished by the
late Secretary Window tend to confirm tine
British Finance Secretary.
SUPPLY AND DEMAND.
st. JOHN furnished statistics Of the produc-
ton, consumption and coinage of silver,
showing the present annual absorption was
exceeding the present annual production,
and the Government would be unable to
continue obtaining the amount now re-
qulred by law at the maximum price pre-
scribed; hence, that the act of 1890 will
gradually but irregularly advance the price
to 81 for 81 IA grains. Therefore free coin
age, By fixing hat as a minimum price at
once, and thereby establishing even ex-
change between the far East and Europe,
will greatly enlarge Chna's and India
absorption of silver annually. In eonGe-
quence free coinage will diminish the an
nual silver addition to our currency COM
pared with that addition under our present
law and necessitate material increase in
the worlds production of silver to meet the
demands OF trade for money.
THE MEXICAN DOLLAR.
At the conclusion of St. Johns paper
John Jay Knox took the floor and said he
fully agreed with st. John in some Of his re-
marks. After citing certain facts, giving
figures, he said some time ago the Mexican
dollar was to be found in nearly every bank
in this country, but to-day where were these
coins? They have been sent back to Mex
leo in paynent for goods, being accepted at
their face value, less transportation to Mex
leo. Why was this? Because Mexcaus
have advantage of free coinage. We have
dollar which will not be accepted in Mex
leo for Its face value, and yet, this country
has credit which Is nnSurnaSSp6 nv in
world.
st. John replied that it was mistaken
idea to compare the United States with
Mexico, because all of the latter's products
were beneath the soil, aud, though she did
not coin cent, all her gold and silver
would naturally 90 away from her, while in
the United States all the products were
above ground.
TIE CANADIAN SYSTEM.
William C. Cornwell of Buffalo read a
paper on the Canadian Bank-note Circula-
tion," contrasting their system with ours
The Canadian system, he says. is one
of the best in the world. 1t gives Canada
circulating medium fully meeting all re-
quirements both as to elasticity and safety
No bank can issue notes with less than
$780, 600 paid-up capital; notes are first
lien upon all assets of the bank; the stock
holders are doubly liable. and there is,
in addition, guarantee fund contributed 10
by all the banks. In brief, every dollar of
Canadian bank notes has over SO on an
average, S. at the lowest, in security at the
back of it. The American currency system
is inadequate, unsatisfactory and danger
Gus, and the speaker thought the Canadian
system one of the best eXtant Panics, for
fear of stringency, are unknown there, as it
has never been necessary to issue more than
about 60 per cent of the notes authorized by
law.
RESOLUTION REFERRED.
Mr.. Vanslick of Albany offered a resOlu-
tiou looking to the formation by the ESecu-
tive Council of bill TO be furnished each
State association for presentation to the
Legislatures abOlishing or making uniform
"days of grace" He thought the country
had outived the grace" system. This
resolution was referred.
Richard NJ. Nelson of Selma. Ala, was
elected President of the association and
John j. Knox First Vice-Presiden After
the usual resolutions thu convention ad-
IOurned.
Sensational Developments Expected
LEWISTON (Me.), Nov. l2-The Journal
says there are rumors of large shortage in
the books OF one of Portland's prominent
men. and sensational developments are ex-
| pected.
- 2 = G. -