The morning call., 1892-08-07
THE POLITICAL WORLD.
Secretary Fester addresses the Farmers
of Ohio.
Review Of the Financial Condition Of The Country
GeappOriiOnmeRt in Michigan Settled.
The Alabama Election Returns.
Special to THE MORNING CALL

VERMIJLIoS, Ohio. Aug 6-The Repub-
lican Presidential campaign was opened
here this afternoon In Linwood Grove In the
presence of a great throng Of people, mos tly
farmers.
Hon. Charles Foster, Secretary of the
Treasury. who came from Washington for
the purpose. delivered the principal speech
OF the day on THE Currency of the Couu-
try" The meet ng was held under the
auspices OF the Erie County Agricultural
Society.
In opening Mr.. Foster said 1t was not per-
missible for him TO enter on political dis
eussian. His talk therefore, was largely
historical and free fIom partisanship. Said
he:
"Since / commenced an investigation OF
this subject Que of the great nartIes of the
country has, in effect. declared In favor of
the rehabilitation of the present discarded
system OF State banks" II his hearers
should think he exceeded the bounds of
prOpriety in what he should say on the SUBJ
1ect of the proposed substitution of the old
State bank system for the present national
banks, the blame, if any, should rest upon
the party convention, not upon the
speaker.
History OF the Currency.
The Secretary then gave an historical nc
count OF American currency from IevoIu-
tlonary times, speaking Of the Continental
currency and the policy of borrowing
money to maintain the Government during
the late war Instead of paving the ma
tional debts in greenbaeks, the experience
or the Continental currency showed the
folly OF this. The cost OF the Revolutionary
War fell on the patriotic people who re-
celyed the currency, while the Tories, who
refused TO accept II, were the only ones who
escaped ruin.
The, speaker then reviewed the condi-
ton OF circulation prior to 1860, described
the panies OF 1914, 1887 and 1857, and said
the arrangement of the paper currency was
an important factor in each. The banks
issued money and encouraged wild specu-
iatlon, thereby greatly aggravstiug the re-
suits. lie then gave an interesting account
OF the War circulation and the means used
by the Government to carry on the con-
test.
The National Bank Act.
lie dwelt at length on the national bank
act of 1864 and the changes 1t wrought in
the character of the eOuntry's De per circula-
ton. Instead of being subjected TO the ex-
tortlon OF note-shavers, as under the State
bank system, the holder of a national bank
note found 1t equally good in all parts of
the Union. and no money has been lost to
the people through the failure Of any ma
tional bank.
The Secretary next gave an account OF the
resumption OF specie payment. and extolled
the wisdom OF Congress which provided for
IT. lie referred tc the restoration of the
standard silver dollar. the increase in VOL
ume OF money in circulation. and presented
tables showing that the amount of money in
the United States on August l. 1892, was
$3.50, 08, All. The amount In circulation at
the same date was 81 1,69l, ,949. S25; money per
eapita, $50 09; circulation per capita, S24 Al.
This. ne said, was the greatest per capita
circulation the country ever had.
Better Than State Banks.
Concluding, the Secretary said: $40 me
1t seems perfectly clear that if this country
is to have any kind of paper money issued
by banks, the national bank system Is uu-
dOubtedly preferable to that OF banks of
issue under State authority. If more bank
Issues are needed they can easily and safely
be had. AT present there is no profit in the
circulation or banks. If our $3.50, 600 900
per cent bonds we're extended so years at
2per cent relieving the banks from taxation
beyond the cost To the Government of issu-
Ing notes and maintaining the Bureau of the
Comptroller OF the Currency, ana permitting
them to issue notes up to par of the bonds,
the banks, | think, would freely take these
bonds and issue notes upon them, thus fur
nishing the currency to any amount re-
Quired by the business interests Of the cOun-
try. and at the same time reduce the rate of
interest One-half to the extent of the bonds
taken for such purposes. l am not advising
this to be done. but express my opinion as
TO the preference of the issue of the bank
notes by the national banks as against the
proposed rehabilitation of the old State
bank SYSTEM"