The Portland daily press., 1893-10-20
WASTED In AUSTRALIA.
The Foreign Capital Which Was
Frightened from America.
BANKERS DISCUSS THE PROBLEM
OF THE HOUR.

The Senate Advised by Telegraph to
Repeal the Purchase Clause of the
Sherman B.n-President Hendrix
Thinks the Time Is Ripe for Per-
manent and Elastic Banking System
Others Have Schemes to Secure 1t.
Chicago, October 19.-The second ard
closing day of the 18th annual convention
of the American Bankers Association
opened with prayer. The first paper on
the programme dealt with the panic in
Australia and the United States, and
was presented by Hon. Joseph C. Hendrix,
president of the National Union bank
of New York. He attributed our late
panic to the Bland and Sherman acts
which drove away foreign capital which
Australia has since squandered Deposi-
tors in our banks, he said, suspected the
future of the money of the country. He
contrasted the methods of the Australian
and American banks during the panics
in the two countries to the advantage of
the latter, praised the New York
Clearing House committee for it's SPLEEN
did generalship and declared that the
afresh in the late panic. Mr.. Hendrix
affirmed that the time was ripe for a
permanent, stable and elastic banking
system in this country.
A lengthy and able paper on elastic
currency Gu, was presented by Hon. Horace
White of New York. Mr.. White declared
that the draft and check system used by
business men of this country is elastic
while the bank note system is not. He
said the government cannot impart
elasticity to currency unless it goes into
the business of discounting commercial
paper. The requisites for an elastic cur
rency are that it must be limited only by
the demand for Instruments with which
to exchange the consumable products and
materials moving through the country
and it must be issuable at once as the
demand for it arises. He contended that
bond security for bank notes was not
consistent with elasticity and advocated
elasticity by bank notes which can be-
secured by the unlimited liability of the
banks stockholders, or by making one
bank so large that it cannot fail and
making it the sole issuer of currency, or
by small lax on bank notes to be ac-
cumulated as a safety fund
Sydney Sherwood of Johns Hopkins
University. of Baltimore. gave resume
of the Bankers association it's origin,
work and prospects
Hon. E. G .Leech OF New York, took for
his subject The silver Question as Re
lated to the Appreciation of Gold.1 MIR.
Leech said that foreign investors ard the
great mass of our business people believe
it is not possible for this country to con-
tinue stosabsorb in its currency depTe-
ciated and depreciating metal without
placing our monetary system on q silver
basis where ourpaper dollar will repre-
sent on any promise to pay silver dol
lar. This is the logical reason for the
distrust that has been created To main
tain our credit with foreign nations all
our currency must be redeemable on de-
mand in the money which civilized
countries have decided to do business
with, gold. He quoted statistics to show
that the decline In prices of certain staple
commodities, brought about by natural
causes, is no Justi1ication for the theory
that gold has appreciated in value
through the issue of silver money.
George Leighton of St. Louis, spoke on
The Need of Conscientious Currency
Reform. A resolution demanding, in the
name of the American Bankers Associ-
alton the immediate and Unconditional
repeal OF the purchasing clause of the
Sherman silver bill, was Immediately
adopted and ordered telegraphed to the
Senate. These officers were elected:
President, M. M. White president of 1.-THE
Fourth National bank, Cincinnati, first
vice president, John G. P. Odell, president
of the Union NATIONAL bank, Chicago;
members OF the executive council to fill
vacancies, Bumont Clark. J.B. Fargan,
NJ. B. Hepburn, M. II. Rhawn, John B.
Branch, L. B. Day, F. Hayes. A vice
president from each state was chosen.