The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-11-13
DISCUSS SILVER,
Friends Of the White Metal Carried
the Day at New
Orleans
Tho Scheme for q National Our
rency Advocated by Banker
st. John.
ity-The Currency of Canada
Wherein 1t Il Superior.

L H Na E
New ORLEANS, Nov. 1.-THE American
Bankers association resumed its session
to-day. and the silver question had the
right of way from the start, led by w. +.
st. John, of New York. In ST. Johns
paper he made the following proposition:
"Cease buying silver bullion and restore
the United States coinage system, founded
with the mint in 1852, and only abrogatsd
in 1873; that is, reopen the minis to the
equally unrestricted coinage of gold and
silver, and to allow the owners of gold n
silver to receive legal tender notes at coin
value instead of coin at their option. notes
to DO redeemed in other Join at the treas
ury option. but the secretary to redeem in
bullion at not less than the coin value
thereof on the request of noteholders;
moderate coinage to be prescribed, and
oil that remained to be- coined or not, at
the sscrstary's discretion; all gold and sill
yer bullion and coin resulting 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 replaced by the pro-
posed new notes secured as provided. and
redeemsble al prescribed; the president of
the United States to be required to pro-
claim our adoption of the European coin
age ratio for gold and silver when the con :
tinent rsopens her mlnts to silver; our
mints thereupon buying up our silver dol
lars then outstanding at a premium of
three cents each. and replacing
them with silver dollars containing
pure silver, by such provision of statutes,
and without international ENHANCEMENT, as
we can assure Europe against the flight OF
our silver dollars for rscoinage at their
mints, and assure ourselves against such
contraction of our current money whenever
Europe reopens her mints to silver"
st. John dismissed the allegation of an
impending avalanche of European silver
with statistics of the financial condition OF
all European nations in detail, showing
that they need their present silver money
in every case. His proposition contem-
plates the refusal Of gold for legal tender
notes, and their redemption in silver only,
if the secretary of the treasury suspects a
hood Of foreign silver coming for our gold.
In opposition to So nator Sherman's pro-
nounoea attitude as to silver money, st.
John quotes Eneland's present first lord of
tno treasury, suppOTteu Dy tne eminent
professors Of political eoonomy Of Oxford,
Cambridge, Edinburgh and Liepsiz univer-
sities. Lavslye favors our adoption of free
coinage at all hazards because in the event
of a possible failure Europe would be a
greater sufferer than the United
coinage for United stat.s independently,
assuring success. and urging that mo ma
tion Of the world il more independent Of
Foreigners" st. John furnished statistics
of the production, consumption and COIN
age OF silver. showing . present annual alb
sorption exceeding the present annual pro-
dIction, and that the treasury is unable to
sontinue obtaining the amount now re-
qrirsd by law at the maximum price pre-
ally, but irreRularly, advance the price to
81 for 3714 gains. Therefore free COIN
age by fixing that as the minimum price,
at once becomes a fact, thereby establish
ing even exchange between the far east and
Europe, which will greatly enlarge China
and India's absorption of silver.
At the conclusion of st. Johns paper
John Jay Knox took the floor and said he
fully agreed with st. Joh IN some of his
remarks. After citing certain facts and
giving figures, he said that 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 had
been sent back to Mexico in payment for
goods, being accepted at face value, less
transportation to Mexico. Why was this?
Because the Mexicans have the advantage
of free coinage. We have a dollar which
will not be accepted in Mexico for it's face
value. And yet this country has q credit
which is unsurpassed by any in the world.
st. John replied that it was a mistaken idea
to compare the United States with Mexico,
we're beneath the soil and, though
she need not coin a cent. all her gold and
silver would naturally go away from her.
while in the United States all products were
above ground. Johnston, of Birmingham,
expressed satisfaction with st. Johns
stand in favor of a fair currency. He SAID it
was a race between the white metal and
colored metal, and he did not want to see
the colored metal put ahead of the white
metal. He announced himself in favor of
reciprocity and against artificial laws
which admitted one product and excluded
another.
VIM. G. Cornwell, of Buffalo, read a
paper on Canadian bank note circulation,
contrasting their system with ours. Ths
Canadian system, he says, is one of the
best in the world. 1t gives Canada a circu-
lating medium fully meeting all require
ments. both az to elasticity and safety,
No bank can issue notes with less than
S25O,0O0 paid-up capital. The notes are a
first lien upon the assets of the bank,
stockholders are doubly liable, and there is.
in addition, a guarantee fund contributed
to by all banks, In brief, every dollar in a
Canadian bank has over So on an average,
and IS at the lowest, in security
back of it. The American cur
rency system is inadequate, %unsatis-
factory and dangerous, and the speaker
thought the Canadian system one of the
best e1tant. Panics and stringencies are
unknown, as it has never been necessary to
issue more than about 60 per cent OF the
notes authorized by law.
Mr. VaDsIiCE. Of ALBANY Offared q racoIp-
tion looking to the formation by tine execu-
tive council of n bill to be furnished each
state association for presentation to legis-
~latures. abolishing or making uniform tie
DAYS of grace. He thought the country had
outlived the grace system. The resolution
was referred. Richard M. Nelson, of Selma,
Ala. was elected president of the %associa-
ton, and John Jay Knox first vice rresi-
dent.