The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-16
REFORM OF The CURRENCY.
Two New York Bankers Before the
House Committee.


Parties to the Guarantee Scheme.
President St. John of the Mercantile
National Puts Himself on Record as
in Favor Of Free Coinage of Silver.
The Committee to Report the Carlisle
Plan to the House without Amend
ment.
Washington. Dec 15.-To-day's session
Of the House committee on banking cur
rency closed the hearings that have been
given during the past week on the subject
Of revising the national banking and cur
rency system. Secretary Carlisle, Senator
Teller and a number of others interested
In financial matters, were present.
Bankers representing views directly op-
posite occupied the attention Of the COM
mittee. They were G. G. Williams, presl-
dent Of the Chemical National Bank of
New York, and w. p. st. John, presi-
Of the Mercantile National Bank Of New
York. Mr.. St. John is in favor of free
silver, while Mr.. Williams is against II.
Mr.. Williams maintained that the pres
ent situation in currency matters was one
requiring only firmness and common sense.
The first problem In a clumsy and con-
glomerated financial system was the dis
position to be made of the legal tender
notes. No financial system, he said. could
be permanently successful without pro-
viding for the elimination Of these notes
from our fiscal system. Provision should
be made at once for funding a part of
them, say 5O0OO, OOO in amounts Of per-
haps $50 100000 at a time, at the discretion
of the Secretary Of the Treasury, with
United States bonds bearing a rate of in
terest not over per cent. and his idea
would be that per cent. bond would
be the most advisable to issue, as il would
never go below par, and that these bonds
should be received as security for the
circulating notes Of national banks on the
basis Of par for the bonds, the govern
ment having a first lien also on the assets
OF the banks as additional security, was
suggested by Mr.. Williams. These notes
would be redeemable in New York city,
and would furnish adequate elasticity to
the currency when issued in sufficient
volume, and being readily convertible, the
the security would be ample. The tax on
the circulation Of national banks, he said,
should be removed at once, and with
3 per cent. bond at par and no tax on
circulation, there would be sufficient in
ducement for national banks to take out
circulating notes.
Mr.. Williams was asked a number of
questions by members Of the committee
TO one of these he said he did not believe
1t was the business of the government to
issue notes He was opposed to the the
ory of the Carlisle bills for protecting note
holders by safety fund. Conservative
institutions, he said, would not join hands
and be jointly responsible for the circu-
lation of from 5000 to 1900 other banks as
provided in the Carlisle plan in cases
where the safety and the guarantee funds
were not sufficient to pay the debts Of
failed banks. incidentally, Mr.. Williams
gave a statement concerning his own bank
which caused some of the members of the
committee to raise their eyebrows in sur
prise. Its capital is 100000; its surplus,
Sc, 100000; its undivided profits more than
81, 100000; its deposits $30,000,0O0, its divi-
dends 150 per cent per annum, and its
stock was selling at $4,000 per shares Of
$780,
Mr.. st. John started off with a state
ment that showed the temper of his sub
sequent remarks. Under official dictation,
he said, tutored by the one most aggres-
sive of all our handful of "Goldites," the
United States congress fddled with bank
notes while the burning issue is our pri-
ry money. Redundant bank notes had in
variably banished gold and silver. They
never were suspected of enticing either
into money. The aggregate of money,
said Mr. st. John, determines prices, and
to enlarge the aggregate of money in the
United States was to raise normal prices
for home and internationally consumed
commodities here.
Mr.. St John spoke In favor
Of silver and urged bimetal-
lism by concert Of laws. But" he said,
at4 to q
independently is to yield silver as our
only money my conviction is the convic-
ton OF Robert Morris, namely, that silver
is preferable TO gold If either is to be the
only current money OF the United States.
The present Secretary Of the Treasury Of
the United States, and his associates Of
the Presidents cabinet have lately shared
well advertised effort to heap posthu-
nous honors on Robert Morris"
Criticising the repeal of the Sherman
act and pointing out the results and per-
lis of gold monometallism, Mr. st.
John urged that congress restore our
Hamilton-Jefferson coinage sytem, found
ed with the mint, maintained for eighty
years without complaint, and Withdrawn
unobservedly at a time when neither
gold nor silver was our current money.
Mr. ST. Johns entire statement was de-
voted to an argument that congress
should enact law providing bimetalhsm.
This, he claimed, would 90 away Win
the necessity for other financial legislation
and If only such a law was passed and
approved there would be no reason for
passing banking laws Bimetallism and
not banking legislation was what the
country needed. He concluded his re-
marks with the statement that acting
entirely in good faith, he wished 70 say
that he would antagonize everything
that he had seen printed and heard said
by gentlemen Of his profession before
the committee.
During the absence Of the members or
the minority it was decided to report the
Carlisle bill without amendment. Several
members of the majority gave notice
that they wished to amend the bill, but
II was agreed not to do this in commit
tee. II was decided to report the bill
10 the house and allow amendments to be
offered to Il when IL comes up for con-
sideration No action was taken binding
the majority to support the measure in
the House or to support any amendment
that may be offered. When this agree
ment had been reached the republicans
we're sent for.
Soon after the full committee met
motion to report the Carlisle bill favora-
bIv and without amendment was made.
The motion was agreed TO by a vote of
yeas TO s nays. On this motion Messrs.
johnson of Ohio, and Ellis OF Kentucky,