The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-13
Protest by the Wool Manufacturers Associa-
tion Against Any Change in the Duty on
Wool-Springer's Bill Denounced.
FOR SOUND MONEY.
Arguments OF Editor White, Representative
Harrer and Controiler HepburD

York and Baltimore occupied seats on the
stage. The topic of the evening was ma
tlonal Versus State Banks of ISSUE"
Papers had been submitted to the academy
on this subject by Hon. Horace White.
editor of the New York Evening Post: by
Hon. w. L. Trenholm, of New York, ex-
Controller of the Currency; by Hon. M. ID.
Harter, of Mansfield, o.. and by Hon. A. ).
Hepburn, present Controller of the Cur
rency.
The discussion had q asiRnificanoe far be-
yond that of q mere academic debate, as
the first three gentlemen arc known to be
intimate advisers of Presldent-elect Cleve-
land in financial matters. while Mr.. Hep
burn represents Mr.. Harrlson's administra-
tion. Mr.. White presented the leading pa
per of the evening, which was discussed
either impromptu or in briefly written pa
pers by Messrs. Trenh holm. Harter. Hep
burn and others. The views advanced are
of peculiar in terest at this juncture, as they
undoubtedly represent the leading tenden-
cies which will make themselves felt In the
approaching struggle in Congress and In
the country at large on this Issue.
Me-. White gave sketch of the good and
bad systems of banking that existed before
the war. In the former category were the
State Bank of Indiana. the Louisiana bank
law of lS42, and the Suffolk bank system Of
Massachusetts. The governing principle of
all these was that the banks assets should
redeem the circulating notes. This was. In
the Speakers opinion. the true theory OF
banking. The bad systems that existed
before the war were the free banks, more
especially of the Northwestern States,
which were copied after the New York sys-
tenn OF issning notes of securities lodged
tenn was step backward in the evolution
of ban king because it absorbed the banks
capital before it's doors were opened for
business.
Mr. w hite thought the sy stem of banking
On pcDds security was destined 20 perish
seook. because all the securities lit to be
used for this purpose were fast disappear
ing. The national bank-note system could
be preserved and improved. however. by
very slight change in the present law: N ame-
ly, ont OF the present Tax on bank notes con-
stitute q safety fund, TO be lodged IN the
treasury. the amount of 1t to be computed
by actuaries. taking the national banking
q basis. Let the government continue as
now to be responsible for the notes,
and let it continue to hold as now
a first lien on the assets and on the
personal liability of the shareholders
for Its own protection; all the other parts of
the Dational-bank law to stand as now.
Whenever the safety fund reached the ascer
tanned amount let the partici patnR banks
who draw their bonds sell them If they
choose. The plan would dispense with the
craving for silver currency. because IL
would furnish all the circulating notes
needed, and it would dispense with the
need of State bank-nOtes. because every
facility for sound banking that State
could possibly grant would be granted by
the national government.
HARTERs FINANCIAL VIEWS
Hon. NJ. ID. Harter. of Ohio, using as q
text American Banking and the Money
Supply of the Future" reviewed the bank
ing periods or epochs on this continent,
four In number. and laid down conditions
the adoption of which were. in his opinion,
essential to the successful financial future
of the United States. Tho first was that
gold must continue to be, as it is now. the
sole standard of value III the United states.
and the bimetallism must and can only be
maintained by limiting the coinage Of the
other metal Isilverl, as We do now. The
silly waste. loss and general insanity which
generally marked the government purchase
of pig.silver must never be re-
peated. The second was that the
government must stop the Issue of legal
tender currency, retire 1t In the best man.
ner and at an early date as can properly
be done. all the paper 1t has out and there
after cODtine itself to collecting taxes, dis.
bureing the proceeds and keep it's hands
OIL the money market. With the gOvern-
ment simply coming freely all gold and re.
stricting the coinage OF the baser metals.
silver, nickel and copper, every other form
| of money would be promptly redeemabie
or convertible into gold. and the volume
| under any good banking system would al
| ways be what the business OF the Nation
needed.
| Mr.. Harter then presented the bill intro
duced in Congress- and proceeded to an
mar hfp ttnnc ~ n ri hA
| banking system which would follow it's
| passage. This portion of his address
| cleared ND every objection made to date.
and the speaker said that under such law
We would never have too little or too much
| money in the United States: that 1t would
always be promptly redeemable In gold.
| and, therefore. equal 70 1t; that ability
| and elasticity would marvelonsly assist
| business; that every feature existing be-
| fore and at the opening Of the civil war
! showed that with il we would have car
ried the war on upon gold basis and at
| little. If any, more than two
thirds the cost. and that all our
| financial ups and downs and practically
all the business uncertainties since 1866
! would have been eliminated. He pictured
the business OF the United States free from
congressional control which would follow
the adoption OF his plan, and said that,
while 1t very properly provided for State
| banking. the banking of the future wouid.
| IN the nature of the case nnder this bill, be
very largely done by national banks and
| by banks and bankers not issuinR notes.
! He said that, with the United States ad her.
! ing strictly to the Democratic gold dollar
! of 1881. % 20 grains fine. and with such .
| banking system as his bill provided. 1t
would be but O few years nntll the inter-
national trade of the world was measured
by the convenient dollars and cents sy stem
! of the United States, thrs discarding the
| awkward. clumsy and cumbersome basis of
| the English pound sterling
! CONTROLLER HEPBURN'S PAPER.
Apaper was submitted by the Hon. A. s.
Hepburn. Controller Of the Currency. on the
subject of State and Nationsl Bank Cir
cnlation." In substance il was as follows:
"The Constitution prohibits the States
! from coming money or making anything
! except gold and silver legal tender. State
bank bills could not become legal tender.
neither are national bank bills. In times
| of prosperity State bank bills would cir
culate freely, but in times Of striDgenoy