The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-11-29

was required to pay to the state treas
urer one-half per cent per annum upol
its capital stock until 3 per cent had &C
cumulated. In 1913 Willard Fillmore
then comptroller of the state, SHOWED
by his report that the contributions t
this fund had been $1,S7G,063, and thu
notes of failed banks amounted to onl!
81, 54S,55S, leaving a surplus as agains
loss by circulation of 1927 800. AS Mr.
Horace White very aptly says, in al
address delivered before the American
Academy of Political and Social Science
at Philadelphia, This is perhaps the
most pregnant fact in the history OF
banking in this country"
Our currency must be national; its
credit equally good North, South, East
and West. Commerce knows no state
| lines, and her handmade, the dollar
dare not halt upon the boundary of any
state, timid as to her rights, hesitating
as to her reception.
ADDRESS OF HON. A. B. HEPBURN
The underlying principles of the cur
rency plan presented by the bankers OF
Baltimore:
First-A currency to serve public and
private needs must be national, good
Throughout the nation.
Second-A perfectly safe currency can
be provided without stock or bonds us Sc
curity.
Third-No currency can be elastic that
is secured by bonds, since the cost of the
bonds exceeds the amount of currency that
can issue.
Fourth-The experience of the Domin-
ion of Canada, the statistical history of
the national banking system during pc
riod of 81 years in this country, shows
cOnclusively that the first lien upon n
failed banks assets, including stockhold-
ers' liability, together with a moderate
safety fund, affords ample protection to
bill holders and the government that guar
antees such notes.
Sound money advocates, relying upon
the impregnability of their position, until
aroused from their lethargy by the dan
gers that eliminated in the panic
of 1893, were for period of
years quiescent. On the other hand
the champions of silver, with mines to
work and Il commodity to market, and
the representatives of debtor commune
ties, have sounded and resounded the de-
mands of increasing trade and growing
population for more money. They struck
Il responsive chord in the honest cOnvic-
ton Of many, in the personal want of
more, q personal want that somehow
imagines that with plethora of money
more would fall to their portion, without
pausing to reflect that none could fall
to their portion except they have an
equivalent to exchange in form of labor
or property of some kind.
The political action of both parties,
expressed i'll party platform and statute
law, representing not honest conviction
but Il desire to placate and capture the
more money" and the silver" votes, is
responsible for conviction that has be-
in or n oil N hn nf m
that there can be no increase in our cir
culatiOn medium except it comes through
some form of silver legislation. They
say, Opposed to free coinage? What
are you going to do? Population and
business are increasing, our currency
should increase in the same ratio. The
government should not issue more fiat
money. State bank circulation is
fraught with danger. National banks
cannot supply currency because govern
ment bonds as security are fast being re-
tired. We must resort to silver as the
only alternative"
The action of the bankers of Baltimore
so ably presented to this convention and
for which they deserve the thanks of
the nation, is a complete answer to all
this, and Mr.. Chairman, it is Il timely
answer. With the Republicans of Cali
fornia and the Democrats of Ohio de-
handing free coinage of silver at the
ratio of 16 to /, and varying shades of
the same sentiment finding public and
party expression in different localities,
it is imperative that this convention of
bankers formulate the principles upon
which they believe the currency of the
country should be founded.
We have now in use gold and silver GER
tificates representing actual coin on de-
post. We have greenbacks and Ger
tifcates representing greenbacks on de-
posit. We have silver warehouse re-
ceipts issued under act of July IA, Io99,
in use as money, and also national bank
notes. Gold certificates are like Bank
of England notes, which with the eX-
ception of E2O,000,000 represents ac-
tual gold on deposit. Silver certificates
are the paper proxy for so much coin IN
the vaults of the treasury, and which,
notwithstanding it was the dollar of
our daddies," could not be coaXed into
circulation. The greenback is a non-In,
terest bearing forced loan OF doupttuI
constitutionality, and could only be held
legal as a war measure. The notes is
sued under the act of 1S90-Sherman
law-were given in payment for a, com,
modify which the government did not
want, and for no other purpose than tG
placate the silver interest and furnish
a note to circulate as money Ihey
are better than the Bland doliar vac,
of February 2S' 81 1873 igsua Oecf f6s1
represented a gold dollars worth OF sll
yer. The Bland dollar never did.
| In response to demand for more none!
which was supplied through silver leg
isation, we have coined since 1919 lou
hundred and twenty-five millions OF sll
yer dollars, which we have forced INT,
circulation either directly or through
their paper representatives, besides abou
one hundred and fifty millions of dollar
of Sherman notes, so called. The Dui
lion value of that dollar today is S.49f4
| The seyerest reflection upon our sllVe
coin is the fact that countertelter cal
reproduce the genuine, both as to quaint,
and intrinsic worth as well as to torn
and design. so the mint bureau could no
detect the difference, and still make NOR
than 30 per cent profit by so dong In
following table is instructive:
Total coinage of silver dol
lars under act of Feb. ~. so-o 100 20
| 1913. 'pc'O, AOOi w
lG nsad cost in such Ut S coinage. 3Os,27929
se ngg6f;f of "pp" 69,ss7, SO
Bullion value of silver used
in such coinage at pre- o oo- no
sent market price. .....: lo6,Zo',Zo
Difference between actual
cost and bullion value at ~
| DraSant market price. go. 122,OI1,JI