The morning call., 1894-06-03
FAVORED BY THE BANKERS.
Some Rather Startling State
mentS Made.
STRENGTH OF BUSINESS MEN,
All That Saved the Nation From
Great Disaster in the Re.
cent Panic.

WASHINGTON, June "A resolution
introduced by Goldzier. calling on the
Commissioners of the District OF COlum-
bia for an explanation of their recent ac-
tion in reducing the wages of unskilled
labOrers, occupied some time in the
House to-day after the opening. A NIL
buster was started. not out of any opposl-
ton to the resolution, but because 1t did
not go far enough and include in its in-
quiry other places than Washington, and
the resolution was finally sent to the COM
mittee on the Distric; of Columbia.
Two private bills were passed. one to
pen sion Mary Leavens, and the other for
the relief of Thomas Reed. The Senate
bill to donate to the county of Laramie.
Wyo., certain bridges on the abandoned
Fort Laramie military reservation was
passed, also the House bill to authorize
the construction of a passenger and
wagon bridge across the south or main
Canadian River at Noble. o. L.
The House then went into committee
of he whole, and Islar of South Carolina
resumed his speech in favor OF Brawley's
State bank-taX bill.
AT the conclusion of 1slar's speech Hall
3D. of Minnesota made few remarks in
opposition to the bill and Warner 3D. of
New York followed.
Representative Warner said he believed
the condition of our financial affairs last
summer had demonstrated the worthless
ness of our bank-note currency for addi-
tions to natioDal-bank circulation during
the late panic was only about u per cent
and was less than b aft the amount by
which the banks of a single city virtually
increased it by clearinghouse certificates
alOne-less than half the amount by which
individual bankers increased it during the
month of August alone by actually buying
gold in Europe. The almost frenZed eff
forts of the national banks were utterly
futile in bringing material assistance until
after the crisis had passed, and the result
of their attempt to aid US has been 10 keep
the volume of national-bank currency
outstanding during the past five months,
while the amount of unemployed cur
rency was greater than it had ever been
before, at the highest point it had reached
in FIVE years. And this was not all. The
law permits but S3,000.000 contraction
monthly in any event. 1t will not be pos
sibie therefore TO get back to normal
basis before the annual stringency due
next September, aDd probably not before
a year thereafter. In any particular, there
fore, except security, our natioDal-bank
currency system has proved most s;rik-
ing example of what such currency
ought not to be. 1t was to such dead
fetch that stricken business men appealed
when caught in the panic of August last.
1t was stolid and helpless and they were
forced to help themselves, albeit the law
forbade il, and never was there offered
more conclusive proof of the self-reliance
of our citizens and the superiority of bust
ness expedients over Government direc-
ton. He pointed out that ii was delegate
from the northeast to the Chicago conven-
ton who argued the inclusion of the State
tax repeal plank in the platform. He cited
a number of conservative and well-known
financiers who favored the State bank cur
rency, including ex-Secretary of the Treas
ury Fairchild.
Proceeding, he added: II hold in my
hands communication received but few
days ago signed by the representatives. of
banks including three-fourths of the clear
ing-house capital and larger percentage
of the deposits and discount business of
New York City. and including the repre-
sentatives of nearly every leading national
bank in that city. the very institutions
whose hostility has been assured, or whose
acQuiescence has been credited to a desire
for wildcat currency. So far from sug
costing an objection TO the reinstatement
of our State bank currency or the repeal
of the 10 per cent tax. it simply suggests
that such repeal should be accompanied
by provisions under act of Congress pro-
vldng guarantee for the redemption of
the notes and such periodic official exam
nation and report of the condition OF the
issuing banks as shall properly inform the
public"
In conclusion Mr.. Warner said "All we
ask is that you do not shut us out from CO.
operation by insistence upon such details
or refusal to remedy such defects as shall
compel US to stand aloof. Ii you insist
upon this we believe you will fail. Should
you succeed in this, we believe you will
later realize that the effect has been to
obstruct rather than promote practical
legislation. Should you succeed in put
ting upon the statute-books such propo-
sition as that you now urge. we believe
that you will find that you have thereby
prevented the communities 10 which you
are most interested from the possibility OF
sharing in the benefits which would arise
from proper currency system"
Following Warner. Lester I'D of Geor-
gia and Meyer CD of Louisiana spoke in
favor Of the repeal and it was 500 P. NJ.
when Meyer finished and the House ad-
journed.