The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-11-12
TRADE AND MONEY.
Convention Of the American
Bankers Association.
Brief But Pertinent Address Of Wtlcoms
by Senator Randall.
Letter From Secretary Foster on the Opera
tlOnS Of the Financial Legislation
Of the Last Congress.
Special TO THE MoRSING CALL

New ORLEANS, Nov. 1.-THE American
Bankers Association began its seventeenth
annual convention to-day, with about 800
delegates in attendance. Senator Randall
delivered the address Of welcome. He de-
livered a brief but patriotic address, re-
ferring to the necessity for fixed standard
OF value, and giving the delegates a warm
welcome.
After the Presidents annual address John
Jay Knox read the report of the Executive
Committee. The principal matter was the
request of State associations for representa-
ton. The matter was finally referred back
to the Executive Committee, which first re-
ported adversely, in order that it might hear
the views of all State associations and re-
port back next year.
The Committee on Protection was author
lied to prepare plan for protection against
and the punishment OF criminals and stand
ing committees on schools, finance and
economy were also appointed.
Secretary Green's report showed 1898
members. against 2060 last year. the falling
off being caused by failures, deaths and
designations.
FINANCIAL LEGISLATION.
Secretary of the Treasury Foster. in re-
spunse TO an invitation, addressed letter
to the association on the operation of fnan-
eial legislation in the last Congress. After
reciting the provisions of that Legislation
the Secretary says:
''The amount of silver bullion purchased
with Treasury notes. under the provisions
OF the new law, from August 13, 1890, to
November l, 1891, has aggregated to, jsS, ,536
fine ounces, costing Sos 626, ,5S5, an average
cost of 81 03 per fine ounce From this sill
yer S27, S4S 475 has been coined, and the re-
mainder is stored, in the shape of fine bars,
in the vaults of the mints as reserve
against the Treasury notes outstanding.
INCREASED CIRCULATION.
Nv bile It is tue that the amount of
money in circulation in this country at the
present time is greater than at any previous
period IN our history, aud more per capita
than in any of the leading commercial ma
tlons of the world, with The single exception
OF France, | am OF the opinion that owing
TO our rapid growth in population and
wealth, and an extraordinary development
in all kinds of business, a yearly Increase in
our circulating medium somewhat proper
tiOnate to our growth in population is i'm
peratively demanded. The issue OF Treas
uTS notes uHutE lillS dCb dilDIuS SUCH uu III
crease Of perfectly convenient and sound
currency, based dollar for dollar upon the
cost value OF silver bullion, redeemable on
demand in gold coin. and with the pledge of
the Government to maintain 1t at par
PRICE OF SILVER.
Another object of the act was to pro-
vide home market for the silver products
of the United States by requiring the pur-
chase of a quantity of silver approximating
the monthly product of our mines. Under
the operations of this law silver advanced
from So cents per hne ounce on the 1>t OF
Januury, 1890, 10 81 q, August 19. 1890.
That. it has again retrograded in price is
owing in part to the TACT that because of the
libeI al policy exercised by the Treasury in
the purchase Of silver. both as to the guam
tity purchased and the price paid, large
amounts of foreign silver were attracted to
this market. Other causes which l cannot
| enlarge upon operated to produce this re-
suit, prominent among which is large
falling off In the shipments of silver to
India and China. The shipments of silver
from London to India during the first nine
months of the present calandar year show
a reduction of over S17,000000 as compared
with the same period of the prior year,
while the shipments OF silver 10 China show
even greater decrease.
THE NEW SILVER ACT.
1t Is claimed by those conversant with
the product and movement of silver, that
disposed of. the monthly absorption Of 4 50O,-
! 000 ounces of silver by this Government will
have a tendency to effectually and perma-
nently steady the price Of that metal If
| the reconciliation Of silver as full legal
! tender money is ever to be ACCOMPLISHED, il
| can only be done Dy the action of nations OF
! sufficient commercial importance to mair-
| tain some fixed ratio In the coinage between
the two metals. The new silver act is an
important step in that directlon-d) because
| compulsory coinage and the issue of silver
| dollars OF less intrinsic value than their nOm-
inal value is repealed; (2) because 1t pro-
| vides for much larger absorption of silver
| by this country than heretofore for currency
| purposes, and (3) because the new law de-
| clares it is an established policy of the
! United States to maintain the TWO metals at
parity with each other. 1t seems to me the
| act under consideration is a decided i'm
provement upon the provisions OF the act OF
| 1878, which it repeals. in that it furnished a
| sound currency to meet the growing wants
| of our country, and has a tendency to re-
| duce the difference in value between the two
metals and thus help restore the equilibrium
so much desired"
PAPERS READ.
The topic of discussion to-day was The
| Banking System and Currency of the Flu.
ture." George 5. Coe of New York opened
the discussion with an able paper on the
matter.
John J. Knox read a lengthy and able pa
| per on the same subject. In the course of
| his speech he devoted some space to the
question of permanent national banking cir
culatlon, presenting, in somewhat mod
| ifl"d form, proposition he laid before the
committee of the House OF Representatives
two years ago.
Mr.. Thadley of Yale read a paper upon
Recent Railroad Legislation and It's Ell
feet Upon Finances" He said that what
ever causes shrinkage in railroad values
is OF importance to financiers, because rail-
| road securities are more important than any
| other line OF investments. The loss of pei
cent III interest on railroad securities means
fall in capital valuation greater than the
whole wheat and cotton crop of the coun-
try. Since the passage of the Interstate
| Commerce law the systems west of Chicago
| have shrunk in value $4,000, 900, or more
than % per cent of the par value of theil
stocks. The Interstate Commerce law
| which had been supposed TO be the end OF
the struggle for railroad control, was only
the beginning. Individual States went fur.
ther and did many things with less wisdom
than the Interstate Commerce Commission
Finally the prohibition of pools prevented
the railroads from taking measures in self
defense. The result of such legislation il
shown in the almost entire stoppage of TAIL
| road construction In States like Iowa, whose
| legislation has been reckless. Local ship
pers want low rates, but they still m ore
want plenty of railroad service and will moi
persist in legislation which will prevent then
from getting it.