Omaha daily bee., 1891-11-12
BANKERS AND LABORINCMEN.
Representative Conventions Of Both Meet
to Further Their interests.
PAPERS READ AND TOPICS DISCUSSED,
Amendments Made { o the Constitu-
ton of the Knights OF Labor-
Farmers Meet and Talk
On Timely Subjects.

can Bankers association began its seven
teenth annual convention today with about
300 delegates in attendance. Senator Kan
dali delivered the address of welcome. Flo
delivered a brief but patriotic address, re-
ferring to the necessity for u fixed standard
OF values, aud giving the delegates u well
come.
After the presidents annual, the address of
John Jay Knox was read.
In the report of the executive committee
the principal matter was a request from
banking associations for a representation.
The matter was finally referred back to
the executive committee, which first
reported adversely, in order that it
might hear the views of all state associations
and report back next year.
The committee on protection was author
lied TO prepare a plan for the protection
against and punishment of criminals and a
standing committee on schools of finance and
economy was also appointed.
Secretary Green's report showed l,993
members against 1000 last year, the falling
off being caused by failures, deaths and res
ignations.
Financial Legi lation.
A letter from Hon. Charles Foster, secre-
tarv treasurer, was then read.
Ou Tue operations Oh Une 1lanClhl leRlSld-
tion OF the last congress-, after r~eciting the
provisions of that legislation, the secretary
says: The amount of silver bull
lion purchased with treasury notes,
under the provisions of the new
law from August IL. 1899 to November 1, 1891
has aggregated 66,5SS, 535 fine ounces, costing
SOS, G26, 5G5, an average cost of Sl.03 per fine
ounce. From this silver S21, SIS, 415 have
been coined and the remainder is stored in
the shape of fine bars in the vaults Of the
mi - 20 nc n ,rA,,.A ns.Afrat h. t.a,nn g. 49, 4
outstanding.
"While it is true that theamount of money
in circulation in this country at the present
time Is greater than at any previous period i'll
our history, and more per capita than in any
of the leading commercial nations of the
world. with the single exception OF France, l
am OF the option, owing TO our rapid growth
in population and weak and extraordinary
development In all kinds of business the
yearly increase in our circulating medium,
somewhat proportionate to our growth in
population, is imperatively demanded. The
issue OF treasury notes under this act affords
SUCH an increase OF perfectly conveniently
aud sound currency, based dollar for dollar
upon the cost value of silver bullion, redeem
able on demand in gold coin, and with the
pledge or the government to maintain 1t at
par.
Another object of the act was to provided
home market for the silver product of the
United States by requiring the purchase of q
tull VI oilNS upDlOAllIdIluS u IllOhlilN
product of our mines. Under the operations
of this law silver advanced from 96 cents per
fine ounce on January |, 1890. to Sl.2l on Au-
gust 10, 1890. That it has again refrigerated
in price is owing in part to the fact that be-
cause Of the liberal policy exercised by
the treasury IN the purchase of silver
both as TO quantity purchased and price paid,
large amounts of foreign silver were at
tracted to this market. Other causes, which
| cannot enlarge upon, operated to produce
this rnSit1t n-np1iy,npf M tyhirh is q lf.rn
falling off in shipments OF silver to India and
China. Shipments of silver from London to
India during the first nine months of the
present calendar year show a reduction of
over SIT, 900, 900 as compared with the same
period OF the previous year, while shipments
to China show even Il greater decrease
The committee on schools of finance and
economy reported in favor of agitating the
subject and sending a commissioner to Eu-
rope to study the best system there.
Recent Railro id Legislation.
Prof. Arthur Thadley of Yale read a paper
on '~'ttecent Railroad Legislation and Its
Effect Upon the Finances of the United
States" of which the following is a synopsis:
Whatever causes shrinkage in railroad
values is of Importance to a body OF fnan-
ciers because their securities are Of more inn
portance than any other line of investments
and properties more than all others put to-
gether. A loss Of l per cent in interest on
railroad securities would mean u fall in
ul'bh INV man NlS
wheat and cotton crop of the country put to-
gcther. If we look at the systems i'm
mediate,y west of Chicago we find that
since the passage of the interstate IN
law they have shrunk in value $50, 900, 0UN, or
more than p per cent of the par value of their
stocks. This Is unprecedented in amount.
The same thing happened in 1873, and again in
1885. 1t is peculiar, IN coming without a crisis
in general business. in affect ng railroad Sc
cui tiles alone and in affecting different groups
of railway securities, according to the amount
Of legislation to which they were, subject.
~ HAS war; OiVnn In Gnnnnrt nj fhiG nSGnr.
toni
Such a fall can only have been due to the
legislative action. The interstate
law. which has been supposed to be the end of
a struggle for raj road control, was only the
beginning. The Interstate Commerce com
mission extended its jurisdiction so that the
law applied to many more things than was
expected The individual states went further,
and did u great many things with far less
vision than the Interstate Commerce COM
mission, Finally the prohibition of pools pre-
vented the railrpnds from taking measures in
self-defense. This legislation, though osten-
slbly directed against the railroad abuses,
was really, in considerable measure, tho re-
selves.
The railroad question in : 9orlca is like the
the east and operated In the west, 1nsI as the
Irish land is owned in England, and there Is
an eifort on the part of the people Who use the
property to fix the rates instead OF letting 1T
be done by the people who own 1t. 1t is not
likely that this effort Will succeed; high prices
are II result of scarcity. Wherever the con-
sumors attempt to force prices down by law
they prevent such scarcity from curing itself,
The result is shown In the almost entire
stoppage of the railroad construction in
states like Iowa. whose legislation
has been reckless. Although local
more want plenty OF railroad service and will
not persist in legislation which will prevent
them from getting IL. 1t IS to u process of
this kind, rather than to the action of the SUI
premo court, that the investor must looi to
FOR protection. The recent decisions OF the
supreme court arc wise. but their operation
is too slow. IL Is the duty of tnanc!ers to as
sist this natural process OF cure by directing
adverse legislation is least | kelly to come. IL
they attempt to be dealers in securities alone
rather than Intelligent dealers with public
opinion, both they aud the investors mus .
suffer.
Topic OF Discussion.
The topic OF discussion today was Bank
ing System and Currency OF the Future
MIR. George S. Coe of New York opened the
discussion and read a paper on Inside View
of the Financial Situation He SAID that
the conflicts between the advocates of white
and colored metal seems now an irrepressible
one. The only obvious and practical solution
is the reunion IN money of those ancient but
temporarily discovered dement's.
Mr.. John Jay Knox continued the discus
sion on another line. The following are the
material portions of his speech;
About two years ago | had the honor to pre-
sent to the committee on banking aud cur
for a permanent national banking circulation.
| wish to present, in a much modified form,
this proposition, and | do not wish to consume
more than about ten minutes of your time, |