Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-12-15
A FRIEND OF SILVER
is Banker 1T. John. OF New YOrk-.An
Interesting Financial Discus
sion Before the House C0m:ss.
mittee To-day.

Washington, Dec. l5.--Great interest
was manifested to-day in the closing
hearing on the question of currency revis
ion before the house committee on bank
ing and currency. Secretary Carlisle was
present, as were a number of bankers
These latter represented widely diverging
views.
President G. G. Williams, of the Chemi.
cal National bank of New York, repre-.
sented the prevailing view among banks
while w. p. st. John, of the Mercantile
bank of New York, represented the east.
ern view
FAVORABLE TO SILVER.
''The first problem in our clumsy and
conglomerate financial system is the dis.
position to be made of our legal tender
notes." said Williams. He urged that
these notes should be funded at the rate
of $5OO00,O0O at a time until they are
eliminated from our financial system
Bonds at 3 per cent should be received as
security for national bank notes on the
basis of par value, the government to
have first lien on the assets of the bank
These notes should be redeemable IN New
York City and when issued in sufficient
volume, being readily convertible, would
FURNISH ADEQUATE ELASTICITY
to the currency. The tax on the circula-
tion of national banks should at once be
removed. As to the Baltimore plan Mr.
Williams said that it would be safe in big
cities, but might start many mushroom
banks whose purpose would be merely to
issue notes. The failure of such banks
would cause loss to the whole system
Conservative and well-manage9 inst1tu-
tions would absolutely refuse to join
hands in meeting the losses sure to arise
from
THESE MUSHROOM BANKS.
After funding the legal tender notes and
giving new national bank issue, Mr.
Williams said the next step was to look
after the silver certificates and Sherman
notes. The latter we're amply protected
by the $l00,000,000 in the treasury. AS
to the silver certificates, congress should
pass law redeeming them i'll silver bul
lion at market value, at the discretion OF
the secretary of the treasury, and it might
be we'll similarly to redeem the Sherman
notes. With these changes the currency
system
WOULD BECOME ABSOLUTELY SOUND
and the banking system the most perfect
ever devised. Mr.. Williams was ques
toned as to the condition of his owr
bank. He said that its capital was $780,,
600. 1t had a surplus of $6,000,000. The
Undivided profits were more than $1,000
600. The deposits reached $30,O0OO00
probably the largest in the United States
if not in the world. The dividends were
$50 per cent annually. The bank stock
sold for $4,000 per share of 800. Pres
ident st. John lent much spirit to the
hearing by the vigor of his statement and
its novelty as coming from an eastern
banker.
''Under official dictatien," said he
"tutored by one of the most aggressive
of all our handful of goldites in the
United States,
CONGRESS RIDDLES WITH BANK NOTES,
while the burning issue is our primar,
money, coin. Identically tutored, ou
chief executive has required his secretar,
to abandon the option conferred by Law
upon the United States and grant tt
holders of United States notes the righ
to exact gold always, silver never, al
their redeeming coin.
Had the option to redeem in silver dol
lars been exercised boldly at timt
when only 100000 silver dollars were
owned by the United States, with az
ownership of $116,ooO,Oo0 in gold, an.
possible alarm would
HAVE BEEN HUsHED TO sCoRN.
Gan amendment looking toward seizlnG
upon and exercising the option under
the present or protective conditions O
the treasury would be to court disaster
THEY WANT A rosT.
Representative Wilson, of Washington
has introduced bill for the establish
ment of military post at Spokane. Il
provides that 900 acres must be do
mated by the city of Spokane.