The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1894-12-17
DIVERGENT OPINIONS.
Williams of the Chemical, and st.
John of the Mercantile, Before
the House Committee.
WILLIAMS PERFECT SYSTEM
st. Johns Views Were Distinctly in
Favor of Silver---SynOpsis Of
Their Views.

WASHINGTON, Dec. 17.-Great interest
was manifested in the closing hearing
on the question Of currency revision
before the committee ON banking and
currency of the house. Secretary Car
Isle was present at the opening Of the
session. The bankers to be heard rep
resented two widely divergent views,
President G.. G. Williams of the Chem
ical National bank of New York, repre-
senting the prevailing view among
bankers, while President W.P. st. John
of the Mercantile bank of New York,
represented the Eastern view favorable
to silver. The presence of Mr.. st. John
had drawn Senator Teller to the hear
ing, anxious to hear the views of an
Eastern silver man on currency revi-
sion.
Would He Mushroom Banks.
The statement of Mr.. Williams
opened the hearing. 'The situation is
one requiring firmness and common
sense" said he. THE first problem in
our clumsy and conglomerated finan-
cial system is the disposition to be
made of our legal tender notes" He
urged that these note should be funded
$50, DOC, 900 at a time until they were
eliminated. Bonds at = per cent should
be received as security Of national bank
notes ON a basis of par for the bonds,
the government to have a first lien on
the assets of the bank. These notes
should be redeemable in currency and
when issued in sufficient volume and
being readily convertible, would fur
nish elasticity to the currency.
As to the Baltimore plan Mr.. Will
Jams said it would be safe in large
cities but it might start many mush-
room banks merely with a view to issue
notes and the failure OF such banks
would cause loss to the whole system.
Conservative and we'll managed insti-
tutions would absolutely refuse 30 join
hands in meeting the losses sure to
arise from these mushroom banks.
Would Make N Perfect System.
After funding the legal tender notes
and giving q new national bank issue
Mr.. Williams said the next step was to
look after the silver certificates and
Sherman notes. The latter were amply
protected by 500. 600, 900 in the treas
ury. AS to the silver certificates con-
gross should pass alaw redeeming them
in silver bullion at its market value at
the discretion of the secretary Of the
treasury and it might be well to SINH
larly redeem the Sherman notes. With
these changes our currency system
~~1-ll hano-rrn nhrn1rr<o1wY CnurnI md nwFva
banking system the most perfect ever
devised.
Mr.. Williams was questioned al to
the condition of his owl bank. He
said it's capital was $500, coo. 1t had a
surplus of 90, O0O, 600. The undivided
profits were more than OIL, Oo0,0 The
deposits reached $30, 600, 600, probably
the largest in the United States, il not
in the world. The dividends were 100
per cent annually. The bank stock sold
for a. 800 per share of 500.
President 81. Johns Views.
President Sc. John lent much spirit
to the hearing by the vigor Of his state
ment, and its. novelty as coming from
an Eastern banker.
under official dlctat1On, began he,
'tutored by one of the most aggressive
of all our handful of 'goldites,' in the
United States, congress fiddles with
bank notes, while the burning issue is
our primary money, coin. Id~entically
tutored, our chief executive has required
his secretary to abandon the option on
ferred by The law upon the United
States, and grant to holders Of the
United States notes the right to exact
gold always, silver never, as their re-
deeming coin. Had the option to re-
deem in silver dollars been exercised
boldly at the time when 5000, 900 silver
dollars were owned by the United
States, with an ownership of $116, 00O,-
600 gold, any possible alarm could have
been laughed TO scorn. To attempt to
seize upon and exercise the option now,
or under Immediately prospective con.
ditions of the treasury, would be to
court all the perils OF disaster.