The midland journal. (Rising Sun, Md.) 1885-1947, 1893-11-10
QUESTIONS OF THE DAY
American BANKERS Association.


ings are reported in the Financier, the
leading bank paper of the country, in
condensed but unusually intelligent
and comprehensive manner. No better
reading for students of financial reforms
has been provided than the proceedings
of this last convention of the money
sharks. We do not use the term in an
inviduous sense. The shark is fish
of prey, and is armed with triple
row of powerful teeth which expand
and contract at the fishes pleasure when
its prey is in reach. So is it the
nature of the bank to I've on the indus
try of the country by the usury it gorges
itself with. This is its natural food,
and it is as blameless as the man eating
SHARK. Safety of their vitims demands
the determination of both.
The valuable lessons contained in
this report Of the Bankers Association
agree with the contention Of the most
radical financial reiormer, but they are
not so bluntly stated and must be read
between the lines. The conclusion of
all their speeches and papers read
results in confession that our money
and banking system need reform badly
Their faults and imperfections were
never before so frankly owned up to by
the bankers. They fairly admit the
present national banking system is a
bad failure and must be reformed, but
here the Peoples Party reformers and
the banker reformers part company.
The latter demand unlimited privileges,
with no control by law. This is the
meaning Of their demand but they
avoid stating it in plain terms. Mr.,
w. G. Cornwell, president Of the City
BBnk of Buffalo, read paper on a
sound basis for our currency. The
following extract contains the gist Of
the paper:
1--WE desire to place our currency
upon sound basis, and, while elimin-
ating all false elements, to maintain
sufficient volume, with a provision for
increase and provision for elasticity
In order to accomplish this, first of al
silver purchasing must cease; without
this it is absolutelv useless to institute
other reforms. Then our legal tenders.
the greenback and the treasury note
must be retired. This brings US to the
question, What shall fill the gap Gre
ated? There is but one answer. The
present tendency in all the great nation.
of the world Is toward bank currency
Bank currency is what we, too, must
depend upon. This is strictly in accord
ance with scientific sequences. The
wealth of country should be the basis
Of its currency. The basis is furnished
by commerce itself. The products Of
the labor of the people represent al
there is Of financial value-wealth-ir
nation. Commercial banks, the friends
Of all classes Of the people. of the wage
Garner, the merchant and the capitalist
commercial banks, the longest lived
and soundest institutions of the repre-
resentatives of this wealth in the shape
OF commercial assets, all time proves
are the highest form Of security fol-
note circulation.
"We would then have for our mair
circulating medium a bank currency
absolutely secure, subject to daily re-
demption in specie, of uniform value il
every part of the United States, and
because of daily redemption, possessing
the necessary elasticity for the require
ments of our commerce, at one time
growing rapidly to meet it's swelling
volume, and afterward sinking out O.
sight, as the need subsidized. Trade
could then go on. for the first time il
the history Of this country, unhinderec
by the fear of disturbance and corrup-
ton at its very base, sure of the essen
tial foundation of all enduring COM
mercial prosperity sound currency
We could then take the lead as thu
foremost commercial nation of the
earth. and it would not be long before
the dollar of the United States, instead
of the pound sterling, would rule the
world"
This is as strong greenback doctrine
as any "crank' ever advanced. Mr.
Cornwell wants a national currency
issued by the banks. The greenbackel
wants it issued by the government
The wealth of the country should b.
the basis of the currency, says Mr.
Cornwell, so say we.
"a bank currency i * subjec
to daily redemption in specie" Thu
specie redemption phrase is dragged il
as blind to keep up the gold deIusion
Such currency issued by the govern
ment in place of banks is redeemed
in commodities every time bill il
paid, and this process under govern
ment sanction would go on forever, al
estimated by mundane matters, with nj
specie redemption 10 it.