The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-11-12
INCREASED EACH YEAR,
Our Circulating Medium Should Ex-
pand With the Great Growth y !,
in Population. &
Secretary Foster Says Treasury
Notes Are q Sufficient and
Sound Currency.
or the silver Law Discussed
In y Letter to the American
Hankcrs' Association.

Bankers Association.
NEW ORrnANs. Nov. 1.-THE American
Bankers association began its seventh an
nual convention to-day with about 800 dele
gates = attendance. Senator Randall de-
livered the address Of Welcome. referring to
the necessity for a 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 committee OF protection
was authorized to prepare a plan for pro-
lection against and punishment of crimi-
nails and a standing committee on schools
of finance and economy was also appointed.
Secretary GREEN'S report showed !, 1888 rlem-
bers against 2,060 last year, the falling OF
being caused by failures, deaths and Iesie-
nations. A paper from Hon. Chas. Foster.
secretary Of the treasury, was then read, on
the operation of the financial legislation of
the last congress-. After reciting tho pro
visions Of that legislation, the secretary
says:
The amount Of silver bullion purchased
with treasury notes under the provisions of
the new law from Aug. ID. 1890, to Nov. 1,
1891. has aggregated 665. OSS, 536 ounces,
costing $3.50, 265, $50, an average cost of
S1.OS per fine ounce. From this silver
$27.S4S,475 have been coined and the re-
mainder is stored in the shape of fine bars
in the vaults of the mint as q reserve
against the treasury notes outstanding.
While it Is true the amount of money in
circulation in this country at the present
time is greater than at any previous period
in our history. and moro per capita than in
any of the leading commercial nations of
the world, with the single exception of
France. I Am of the opinion that owing to
our rapid growth in population and the ex-
traordinary development. in all kinds of
business, a yearly increase in our ~circulat-
ing Medium somewhat proportionate to
the growth in population is imperatively
demanded. The issue Of treasury notes
under this act affords an increase of per-
based dollar for dollar upon the cost value
of our silver bullion. redeemable on de-
mand in gold coin, and with the pledge of
the government to maintain it at par.
Another object of the act vas to provide
a home market for the silver products of
the United States by requiring the purchase
of a quantity of silver approximatinR the
monthly product OF our mines. Under the
operations of this law silver advanced from
ninety-six cents per ounce Jan. l, 1890, to
$l.2l on Aug. 10. 1880. That it has again
retrograded In price is owing in part to the
fact that, because OF the liberal policy exer-
cised by the treasury in the purchase of sill
yer both as to quantity purchased and price
paid, large amounts of foreign silver we're
attracted to this market. Other causes
also operated to produce this result, ptomi-
nent among which is the large falling of in
shipments of silver to India and Gnina.
Shipments of silver from London to India
during the first line months of the present
calendar year show a reduction of over $17,-
600, 900, as compared with the same period
of the prior year, while shipments of silver
to China show even a greater decrease. 1t
is claimed by those conversant with the
product and movement, that when the yisi-
the monthly absorption of 1850, 900 ounces
of silver by this government will have a
tendency to efectually and permanently
steady the price of that metal. N8
IF the RECOMMENDATION OF silver as a full
legal tender money is ever to be accom-
of nations of sufficient commercial impor-
lance to maintain some fixed rate in the
between the two metals. The new
silver act is an important step in that di-
.rection. First, because the compulsory
coinage and issue of silver dollars of less
1AltklASlC ydlAO sudA tA0lI AOuluAl Valu0 Is
repealed; second, because it provides for q
much larger absorption of silver by this
than heretofore for currency pur-
poses, and third. because the new law de-
that it is the established policy of the
States to maintain the two metals
at par with each other. 1t seems to me
the act under consideration is a de-
cided Improvement upon the provisions of
ID eact of 1873, which it repeats, in that it
has furnished a sound currency to meet the
wants of our country and has
. tendency to reduce the difference in value
the two metals and thus help to
.estore an equivalent SO much desired"
The topic of discussion to-day was the
system and currency of the future.
s. Coe, of New York, opened the
with an able paper on the mat
er. John Jay Knox read a lengthy and
lble paper on the same subject. In the
course of bis speech he devoted some space
the question of permanent national
circulation, presenting in a some
What modified form this proposition he laid
before the committee of the
house of representatives. two years
Prof: Hadley, Of Yale,
md the effect pom finance" He said
causes %shrinkage in railroad val
les is of Importance to inanciers, because
abroad securities are more important than
my other line Of investment. The loss of
'ns per cent. IN interest on railroad 8ocnri-
tiles means a fall in capital valuation
than this whole wheat and cotton
'rop OF the country. Since the
of the Interstate COM
nerce law systems west of Chicago
lave shrunk in value $50, 900, 900 or more
han 20 por cent. of the par value of their
'tocks. Tbs interstate law,
which had been supposed to be the end of
he struggle for railroad control, was only
he beginning. Individual states went fur
her and did many things with less wisdom
han the interstate commits
Finally the prohibition of
FOOLS prevented railroads from
,aking measures in self-defense.
he result of such legislation ia shown in
he almost entire stoppage of railroad con-
in states like Iowa. whose lepisla-
ion has been reckless. Local shippers want
ow rates but they still want plenty of rail-
Dad service, and will not persist in legisla-
,lOn which will prevent them from ~oat+in,