Los Angeles herald. [volume] (Los Angeles [Calif.]) 1890-1893, 1891-11-12
FOSTER ON FINANCE.
Bankers in Convention at
New Orleans.
Some Interesting Reports and
Addresses Made.
A Letter from Secretary Foster on
the Silver Question.
The Legislation of the Last Congress
Notwithstanding of the Farm
ers Congress General
News Gleanings.



New ORLEANS, Nov. 1.-THE Ameri-
can Bankers association began its sew
enteenth annual convention today, with
about 800 delegates in attendance. SEN
ator Randall delivered the address of
welcome. He made a brief but patri-
otto speech, referring to the necessity of
a fixed standard of value, and giving
the delegates warm welcome. After
the presidents annual address, John
Jay Knox read the report of the execu-
tive committee. The principal matter
was the request of state associations for
representation. The matter was finally
referred back to the executive commit
tee, which first reported adversely in Or
der that it might hear the views of all
the state associations, and report back
next year. The committee on protec-
ton was authorized to prepare plan for
protection against, and the punishment
of criminals. The standing committee
on finance and economy also reported.
Secretary Green's report showed 1893
members, against 5000 last year, the
falling off being caused by failures,
| deaths and designations.
A letter from Hon. Charles Foster,
| secretary of the treasury, on the opera
ton of the financial legislation of the
fifty-tirst congress, was received After
reciting the provisions OF that legisla-
ton, he says:
1.-THE amount of silver bullion pur-
chased with treasury notes under the
provisions of the new law, from
90 -
l, 1891, has aggregated 68,-
SIS, 536 fine ounces, costing SOS, 626, $50,
an average cost of $1.03 per fine ounce.
From this silver $27 .S4S, AIS has been
coined, and the remainder is stored in
the shape of fine bars in the vaults of
the minis, and as a reserve against the
treasury notes outstanding. While it is
true that the amount OF money in circu-
lation in this country at the present
time is greater than at any previous
period of our history, and greater per
capita than any OF the leading CONNER
cial nations of the world, with the single
exception of France, AM of the opinion
that owing to our rapid growth in popu-
lation, in wealth and the ex-
traordinary developments in all
kinds OF business, a yearly in
crease in our circulation somewhat
.proportionate to our growth in popula-
ton, is imperatively demanded. The
issue Of treasury notes under the act
affords such an increase 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 it at a par.
another object of the act was to
provide home market for the silver
products of the United States by requir-
ing the purchase of quantity of
silver approximating the monthly
product of our mines. Under
the operations of this law, silver
advanced from SO cents per fine ounce,
on the lst OF January, 1890, to $l.2l on
August 10. 1890. That it has again ret
regarded in price is owing in part to the
fact that, because of the liberal policy
exercised by the treasury in the pur-
purchased and the price paid, large
amounts of foreign silver were at
tracted to this market. Other
causes, which l cannot enlarge upon,
operated to produce this result,
prominent among which is the large
falling off in shipments OF silver to
India and China. The shipments of
silver from London to India, during the
first nine months of the present calendar
year, show reduction OF over SIT ,000,-
600 as compared with the same period
of the prior pear, while the shipments
of silver to China show even a greater
decrease.
cit is claimed by those conversant
with the product and movement OF sill
yer, that when the visible stock upon
our market is disposed of, the monthly
absorption 100000 ounces OF silver by
this government will have a tendency
to effectually and permanently steady
the price of that metal. If the remone-
tization OF silver as full legal tender
money is to be accomplished, it can
only be done by the action of nations of
sufficient commercial Importance to
maintain some fixed ratio in coinage
between the two metals. The new silver
act is an important step in that direc-
ton; first, because the compulsory coin
age and issue of silver dollars OF less in
trinsic value than their nominal value
is repealed; second, because it provides
for much larger absorption of silver
by this country, than heretofore, for
currency purposes: and because the
new law declares it is the established
policy of the United States to maintain
the two metals at a parity with each
other.
SIT seems to me the act under consid-
GRAFTON is decided improvement upon
the provisions of the act of 1873, which
it repeats, in that it furnishes 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 helps to restore