The morning call., 1894-12-16
SILVER OR GOLD.
To Use One or Both of
Them.
THAT IS THE QUESTION.
ST. John on the Real Issue of
the Day.
ON A ONE METAL BASIS NOW.
He Points the Way TO Get the Coun-
try Back Again to Safe
BimetaIIism.
On A ONE METAL BASIS NOW.


Ing on the question of currency revision
before the Committee on Banking and
Currency of the House. President G. G.
Williams OF the Chemical National Bank
of New York represented the prevailing
view among the bankers. while W. P. st.
John of the Mercantile Bank Of New Y ork
represented the Eastern view favorable to
silver.
"The first problem in our clumsy and
conglomerate financial system is, the dis
position to lie made of our legal tender
notes." said Williams. He urged that
these notes should be funded, 500, 600 600 at
time, until elimn ated from the financial
system. The bonds al 3 per cent should be
redeemable at New York City, and wheu
issued in sufficient volume, being readily
convertible, would furnish adequate elias
ticity to the currency. The tax on the
circulation of national banks should at
once be removed. "As TO the Baltimore
plan." Williams said. SIS would be safe in
large cities, but it might originate many
mushroom banks, merely with a view to
the issue of notes, and the failure OF such
banks would cause loss to the whole sys-
lem. Conservative and we'll managed in
stituticns 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 a new national bank issue"
Williams said ''the next step was to look
after the silver certificates and Sherman
notes. The latter were amply protected
by S100.0 coo in the treasury. AS to the
silver certificates, Congress should pass
law redeeming them in silver bullion at its
market value at the discretion of the Sec
rotary of the Treasury; and 1t might be
well 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"
Williams was questioned as to the con-
6itiOn of his bank. He said its capital
was S300,00 1t had a surplus of Sc, 000,
co., The undivided profits were more
than $1,002 600. The deposits reached
$3O00O,UO0. probably the largest in the
United StaAs, if not in the world. The
dividends were 80 per cent annually. The
bank stock sold for $4,000 share of $780,
President ST. John lent much spirit to
the hearing by the vigor of his statement
and its novelty. coming from an Eastern
banker. Under official dictation," said
he. "tutored by one of the most aggressive
handful of goldites in the United
States, Congress fddles with bank notes,
while the burning issue Is our primary
money coin. Ideniically tutored, our
Chief Executive has required his Secretary
to aband he option conferred by law
upon the United States and to grant the
holders of United States notes the right 10
exact gold always, silver never. as their
redeeming coin. Had the option to re-
deem silver dollars been exercised boldly
al time when only 5000. 900 silver dollars
were owned by the United States, with
the ownership of SIG, COO, 900 in gold, any
possible alarm would have been hushed to
scorn. To seize upon and exercise the
option now. or under prospective condi-
tons of the Treasury, would be 10 court
all the perils of disaster"
Mr.. St. John stated that the same policy
led to the present proposition of substitut-
ing the bank promises of money in place
of the primary and secondary money gold
and silver which they promise. Mr.. St.
John took up the cases of silver mono
metallism. He characterized the repeal
of the Sherman act last year and the clos
ing of the mint to silver as 1.-The worlds
blind experiment" In money. 1t severed
the last link that coupled silver to it's
crippled right of money in the western
world.
Mr.. ST. John declared il was the duty of
Congress to stop experimenting and go
back to the Hamilton-Jefferso coinage
system. ana TO restore bimetallism indie
pendent of other nations. He took up The
subject of what he termed the ''goldites, I"
and cited the record of France in inGe-
pendent bimetallism. The conditions in
the United States were much more pro-
pitious for such action. Within ten years
there was promise of exceeding the popu-
lation of Great Britain and France, and
our gold aud silver could circulate over a
territory seventeen times the area of
France.
Mr.. St John closed with a review of the
notable features of the present financial
condition. The dollar is efficient but
prices are ruinously low. capital lacks in
vestment and manufacturing is restricted
by low prices and labor starves. 1.-THE
enduring fact" said he, "if this aspect of
money is to be preserved, is that the rich
will be made richer and the poor poorer
as the one achievement Of our statute
law" At the conclusion of Mr.. ST. johns
statement the committee took a recess ask
ing the witness to return for further
examination.
81 want to combat every statement of
every banker who has appeared before
you," said Mr.. ST. John as an indication
Of the line of questions he desired. Repre-
sentative Culbersou of Texas, question: ed
Mr.. S.. John as to the remedy he would
propose Tor the present conditions. The
witness presented bill as remedy. 1t
provides for silver coinage on the same
basis as gold. To meet a money strin-
geney, the bill provides for coin certif-
Gates based on bonds hypothetical by the
banks in such quantities as the Secretary
of the Treasury may determine. Mr.. st.
John said the bill would put the country
on silver basis for time thereafter and
both metals would circulate. As to the
Carlisle plan, Mr.. st. John said it would
''falI fat" Banks would not accept it.
they would become st ate banks. But the
Secretary's bill was better than the Balti-
more plan.
Chairman Springer-Would the currency
,ndar tho rlisla pIan ha eqfeo