Evening capital journal. (Salem, Or.) 1888-1893, 1892-08-08
rosrER ON FINANCE.
Initiates the Republican Campaign
in Ohio.

Saturday afternoon In Linwood
grove, IN the presence of great
throug Of people, mostly farmers
Hon. Charles Foster, secretary Of
the ireasury, who came from Wash
ington for the purpose, delivered the
principal speech of the day, on the
currency Of the country. The meet
ing was held under the auspices OF
Erie County Agricultural society.
IL opening, Foster said it was not
permissible for bim to enter into a
political discussion. His talk,
therefore, was largely historical and
free from partisanship. He said that
since he commenced the investiga
ton of this subject, one great party
of the country had in effect declared
ia favor of rehabilitation of the pre-
sent discarded system of state banks.
IL his hearers should think lie ex-
ceeded the bounds Of propriety Ill
what he should say on the subject Of
he proposed substitution of the old
-tate-bank system for the present
national banks, the blame, If any,
should rest upon the convention, not
upon the speaker. The secretary
then gave an historical account of
American currency from revolution
ary times. The cost Of the revolu-
tionary war fell upon the patriotic
people WHO received the currency,
while the tories who refused to &C
cept 1t were the oply ones who
escaped ruin. The speaker then re.
viewed the condition Of the circula-
Iiou prior to 1860. He described the
panics Of 1914, 1887 and 1857, and
nid the arrangement Of paper cur
gency was an important feature ia
zach. The banks issued money and
encouraged wild speculation, thereby
greatly aggravating the results. He
'hen gave an interesting account of
the war circulation, and the means
used by the government to raise
money TO carry on the contest.
He uvxt dwelt at length on the
national bank act of 1854, and the
change il wrought in the character
of the couDtry's paper circulation.
Instead of being subjected to extor-
tioDs Of uote-shavers, as under the
state. bank system, the holder of a
national bsuk note found it equally
good in all parts of the Union. And
no money had been lost to people
through the failure of any national
bank. The secretary next gave an
account Of the resumption of specie
payments, aud extolled the wisdom
of congress, which had provided for
1t. The secretary then referred to the
restoration of the standard silver
dollar, the increase In volume of
money in circulation, and presented
tables showing that the amount of
money in the United States August
l, 1892, was $1,000, ,o34,4 All. The a
mount in circulation at the same
date was 81 ,601, ,940,3 1925. The money
per capita was $36 90. Circu.
lation per capita was $24 Al. This,
be said, was the greatest per capita
circulation the country had ever
had. Concluding, the secretary
said: "To me 1t seems perfectly
clear If this country Is to have any
kind Of paper money issued by
banks, the national bank system is
undoubtedly preferable to that of
banks Of issue under state authority.
Ii more bank issues are needed, they
can easily, safely be had. AT pres
ent there is no profit in the circula-
tiop of the banks. If our S550,00O,-
Geo Of a per cent bonds were extend
ed for 90 years at per cent, reliev-
isg the banks from taxation beyond
cost to the government of issuing
notes, maintaining the bureau ofthe
comptroller currency, and permit
ing them to issue notes up to par of
the bonds, the banks, l think
would freely take these bonds, issue
notes upon them and thus furnish
currency to any amount required by
the business interests of the country,
and at the same time reduce the
rate Of Interest one halfto the extent
Of the bonds taken for such pur-
poses. | an not advising this to be
done, but am expressing my opinion
As to preference of an issue of bank
notes 10y national banks as against
he proposed rehabilitation of the
,ld stale-bank system"