Los Angeles herald., 1892-08-07
THE CAMPAIGN In OHIO.
sEcRETARE0 OF THE TREAsURY FOs-
TER ON THE STUMP.
He Addresses Meeting of Farmers at
Vermfllfon ON the Subject OF
Currency Versus Ma
tionaI Banks.

FnhMibLiors ~. aug Us-- lub 1SopuUs
lican presidential campaign opened here
this afternoon in Linwood grove, in the
presence of great throng Of people.
mostly farmers. Hon. Charles Foster,
secretary of the treasury, who came
down from Washington for the purpose,
delivered the principal speech of the
day, on the currency OF the country.
The meeting was held under the aus
pices of the Erie County Agricultural
society.
In opening, Foster said it was not
permissible for him to enter on politi-
cal discussion; his talIts would therefore
be largely practical and free from partis-
sanship. Said he:
Since you commenced an investiga-.
tion Of this subject, one Of the great
parties of the country has ia effect de-
clared in favor of the rehabilitation of.
the present discarded system of state
banks. II you shoulda think I exceed
the bounds of propriety In what shall
say on the subject of the proposed sub
stitution of the old state bank system
for the present nation banks the blame,
if any, should rest upon the convention,
not upon me. !"
The secretary then gave a historical
account of the American currency from
the revolutionary times. He reviewed
the condition of the circulation prior to
1860, described the panics of 1914, 1887
and 1857, and said the arrangement of
paper currency was an important factor
in each. Banks issued money and en-,
couraged wild speculation, thereby.
greatly aggravating the results. Then
he gave an interesting account OF the
war circulation, and the means used by
the government to.raise money to carry,
on the contest.
He. next dwelt at length on the
national bank act of 1854 and the change
it wrought in the character of the
country's paper circulation. Instead of.
being subjected to the extoYtions OF note
shavers, as under the state bank sys-
tenn, the holder of national bank notes
found them equally good in all parts of
the union, and no money bad been lost
to the people through the failure of any
national bank.
The secretary next gave an account Of
the redemption of specie payments, and
extelled the wisdom of the congress
which provided for it. He referred to
the restoration of standard silver dollars,
the increase in the volume Of money in
circulation, and presented tables show
ing that the amount of money in the
United States August /, 1891, was
$2,360, ,034.4l1. The amount in circula-
tion at the same date was 81, SOL ,949,-
1926. The money per capita was 5000.
circulation per capita $24 Al. This, he
said, was the greatest circulation per
capita the country ever had.
Continuing, he said $50 me IL seems
perfectly clear that if this country is to
have any kind of paper money issued
by banks, the national bank system ia
| undoubtedly preferable to that Of banks
of issue under state authority. If more
banks of issue are needed, that can
| easily and safely be had. At present
there is no profit in the circulation Of
banks. If our $3.50, ,000, ,00C of per cent
bonds were extended fifty years at
2 per cent, relieving the banks
from taxation beyond the coet
to the government of issuing
notes, maintaining the bureau of the
comptroller OF the currency, and per-
mitting them to issue notes up to the
par of the bonds, the banks, think,
would freely take these bonds, Issue
notes upon them, and thus furnish cur
rency to any amount required by the
business interests of the country, and
at the same time reduce the rate of in
terest one-half, to the extent of the
bonds taken for such purposes. / am
\ not advising this to be done, but state
it merely to express my opinion as to
the preference OF the issue OF bank notes
by national banks. as against the pro-
| posed rehabilitation of the old state
hank systen,