The Providence news. (Providence [R.I.]) 1891-1906, 1894-12-31


practical bank man of distinguished
ability. but an investigator of, and an
able and agreeable writer and speaker
| on, financial problems, made the prin-
cipal address, and it was timely, ex-
cellently well expressed and informing.
II was, of course, not Mr.. VERNoNs S
fault that the conditions OF the currency
complications in the Fifty-third Con-
gress Were not the same on the occasion
of the delivery of his address that they
were at the time, "a brief fortnight ago,
when he was asked by the jewelers. TO
prepare himself for discussing them.
AS the the speaker witlily observed :
Tonight, if you insist upon my sticking
to the text you gave me, my remarks
will necessarily assume a perfunctory
and obituary character, which would
consume time without giving pleasure
or profit. If this offspring of Mr.. CAR
Isle was not still-born, 1t died so soon
after its birth that the question arises
IL it was worth the labor and the pains of
the attempt TO resuscitate it by the sub
stitute bill introduced by Mr. SPRINGER.
Nevertheless the opportunity for ar
raigning the administration for the
financial heresies it had expressed as its
ideas was not lost, especially in view OF
the fact that the Springer substitute by
no means quashes the main fallacies that
made the Carlisle conception conspicu-
ous. And so Mr.. VERNON found it still
timely to lay down for the consideration
OF jewellers the sound principles which
should maintain in whatever changes
were made in our banking and currency
system, while disclaiming to assume
to propose sufficient scheme that shall
be cure-all or do-all.
Simple indeed are the fundamental
elements that should be conserved.
Mr.. VERNON summarized some of them
as () safety; (2) simplicity; (0 profits
to the banks; (4) advantages TO the
Government and to the public--the factor
of safety being meant to apply to the
bill holders, the depositors and to the
stockholders. The speaker opened up a
suggestive field for consideration by
pointing out that as our financial sys-
tenn is not the product of experts but
by changing bodies of Legislators
elected by the people, and accordingly
it is particularly necessary to educate
the mass of the people in financial sy IS
TENS and banking methods. Hence
simplicity should distinguish system
and method, and as obvious facts are ever
more convincing than argument, to the
popular mind, the results of expe-
rience are the best guide to contemplated
changes.
That the requirements of safety and
simplicity TO all concerned have been
met by the operation of the present
banking law is demonstrated by an ex-
perience of thirty years. The fac
tor of a business profit
to the banks has, however,
failed in recent years, SO the speaker
pointed out, while still later experience
has demonstrated that the present law
fails to secure advantage to the
Government-to wit: the maintenance
of the Government credit and available
resources. Parity through the oper-
alton of the laws own provis-
ions, more largely through the folly
OF the Government in attempt
ing to carry on the business of the banks,
whose hands had been previously tied,
instead of resulting advantageously to
Government and people, we saw the
Government well nigh bankrrpted and
thousands of its citizens wholly so, with
hundreds and thousands of millions of
value wiped out"
Still, with it's strong points well de-
monstrated, the present banking law
should not be abandoned. Rather
should it be amended to provide for the
defects proven by experience. A provi-
sien for retiring the icgai tender notes,
while it would find opposition in the
West and South, would operate bene-
ficially largely to stop the drain of
Treasury gold. And, with further
analysis of the situation, Mr.. VERNON
summarized proposition for amend
ments as follows:
]. Let Congress authorize tho issue OF 20. or
still better 5O-ycar bonds. bearing interest at
the rate of ~ per cent, which will be given
in exchange, dollars for dollars, for the legal
tender notes.
2 Authorize national banks to issue cir
culation up TO par on these bonds.
3. Continue the tax of per cent. upon cir
culation which would practically reduce tho
interest paid by the same TO li6 per cent. IL
the bonds were all taken by national banks
4. cContinue all the present provisions OF the
law for the Government redemption and sup
ervision at the expense OF the banks.
3. Empower the banks 20 issue additional
circulation 20 the extent of 20 per cent OF
their capital at any time, such additional cir
cuiation, however. TO be subject to "a tax OF
per cent. per annum while outstanding, the
L.x..