The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-05-22
COSMOS AND CURRENCY
Opposing the Renswal Of Wild
Cat and Red-Dog
Issues.

Senator Peffer's plan TO repeal the law
imposing a ten per cent. tax on State Banks
occupied the earnest attention Of the Cos
mos Club last night in the Hotel Washing
ton.
The President, Mr.. John A. Walker, be-
ing in Europe, the chair was filed by Mr..
George L. Record, who, when dinner was
disposed of, launched into the subject of
banks and currency, and then called on
Major Pangborn to say something about the
question OF reviving the old State bank sys-
tenn with its necessary attendants of will
cat and red-dog issues. ssasg
The Major entered into q general history
Of the system which, be thinks the present
Administrator viii not favor. The object
Of the biknowb before Congress is to revive
the old regime. He coptended that there is
no necessity for it. The real motive of the
measure Is to create banking institutions
and give certain parties the right to issue
money. This, in tbs speakers opinion, Is a
dangerous, m~ischievous proposition. The
existence of State banks, With their diversi-
fed currency, means disordersd finances.
Major Pangborn alluded to the pauics and
times of commercial depression during the
past half century as entirely the result of
the issue of State bank money. He OPP
poses it because it makes an uncurrent cur
rency.
A postcard was read from President
Walker endorsing the national system,
which, he says. has been the bulwark of
national strength for twenty-five years.
Mr.. Record thought the bill to repeal
the tax was not aimed to destroy the ma
tional banking system. for that is going al
ready. In a few years it will be gone out Of
existence. He, Mr.. Record, is more con-
cerned with the question, What is to be
done in tho future hen the present system
goes to piecesf He believes that the bank
ing and commercial world will work out the
question for themselves
H REPEAL A s~TUPENDouS BLUNDER.
Mr.. James . Simnnohds. Of the banking
house of Brown Bros, said that the con-
census Of opinion of New York bankers and
~inanciers generally is that a change from
the National TO the State banking system
would be a stupendous blunder. Mr.. Sim
monds q v some statistics showing the
small proportion of failures under the pres
ent system as against the large number
when the State banks hourished and issued
their own notes. He ridiculed the idea of
having forty-four different kinds of cur
rency on the market. He advocated q
sinking fund or premium for the benefit of
depositors in time of panic.
Mr.. Frank O. Cole said that he did not
pretend to know much about the subject.
but be docs. not believe that it is the func-
ton of the Government to issue money or
NEEDLE in any way with the subject. He ia
vored the repeal.
Mr.. Charles Heike's view OF the matter
was hat the whole thing is to get the moni-
tary system out of the hands Of people at
Washington who are so impressionable and
an easy pray, to cranks, whose mania is to
disturb the coinage. Gold, no contended,
should be the only legal teuder. As for
Washington authorities, it was none of their
business to Interfere on the matter.
SlsH POSSIBLY A BENEFIT.
y MI. Joseph A. Dear, while approving Of
the old system, generally Things that it has
many defects. He would not personally OBJ
jet TO the repeal Of the tax, If by that same
it does not follow that the National Govern
ment shall surrender It's rightful control of
the circulating notes OF the country. These
notes are most important factors in inter
state commerce. Mr.. Dear insisted that the
special function Of banks is not to
issue notes, but to provide exchanges,
and If tho Government should impose
on State banks that q failure to redeem
their notes on demand was an equivalent to
bankruptcy be saw no reason why the re-
peal should be carried. With o uniform
government inspection Of banks and estab-
hsnment Of the sinking fund as suggested
the bill might prove a benefit. Mr.. Murray
opposed the repeal. 1t is the duty of gov
eminent to protect the peoples interests.
The State banks cannot an the place Of the
National Bank. and the revival Of the for
mer means chaos. 1t is universally hold
that bad money drives good money out Of
tho market and this would follow from the
establishment Of bank notes. From q flnan-
cha standpoint the bill is q grave mistake.
Other speeches followed from Messrs.
Brown and Holt and Cosmos adjourned,
the majority Of its members being opposed
to the repeal.