St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-12-16

market value at the discretion OF the
secretary OF the treasury, and it might
be well to similarly redeem the Sber-
man notes. With these changes our
currency system would become abso-
lutely sound and our banking system
Inc most perfect ever devised
Mr. Williams was questioned as TO the
condition OF his own bank. he said its
capital was S300,000. 1t had a surplus
OF 500, 90O The undivided profits were
more than sl,000,000. The deposits
reached $50, 600, 900, probably the largest
In The United States. If not in tue world.
The dividends were 150 per cent an
naally. The bank stock sold for a. 300
per share of 500.
president St. John lent much spirit
10 the hearing by the vlgnr of his state
Hient I ana lts novelty as coming from all
Eastern banker. Under official dicta-
tatlon," began he. "tutored by one of
the most aggressive OF all our handful
OF 'goldltes' In the United States. con-
gress 1lddIeS with bank notes while the
oaIhlis issue Is our primary
money = coin. ldentically tutored.
our chief executive has required
MS secretary to abandon the option
conferred 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-
deemlng coin. Had the option to re-
deem III silver dollars been exercised
boldly at the time when 10000 silver
dollars were owned by the United
States, with an ownership OF S11G,OOO,-
0OO gold, possible. alarm could have
Deeh laughed to ScOrn. 10 attempt to
seize upon and exercise the option now,
or under Immediately prospective con-
diuonS or the treasury would be TO court
all the
Perils of Disaster.
Mr.. St. John stated that this same
policy led to the present proposition of
substituting the bank promises of money
III place OF the primary and secondary
money gold and silver which they
promise. Mr.. st. John took up the case
or SllmOnO- metalliSm. He characterized
the repeal of the Sherman act last wear
and closing the mlnts to silver as "the
worlds blind experiment" in money.
1t severed the last link that coupled
silver to its crippled right of money in
the Western world.
Mr.. ST. Ohm declared that 1t was the
duty or con gresS to stop experimenting
and go back 10 the Hamilton Jefferson
coinage system to restore bimetailism
independent of other nations. He took
up the objections of what he termed the
'goldites."
He cited the record of France in in
dependent blmetailism. The conditions
III the United States were much more
propltl0uS for such action. Within ten
years there was promise of exceeding
the population Of Great Britain and
france, and our use for gold and silver
could circulate over a territory seven
teen times the area of France.
Mr.. 81. John closed with the notable
features Of the present financial condi-
Ton. Inc dollar is efficient. but prices
are ruinOuslY low, capital lacks Invest
ment, manufacturing is restricted by
low prices and labor starves. "The en-
during fact" said he, 'If this aspect Of
money is to be preserved, is that the
rich become richer and the poor poorer
as the one achievement of our statute
law"
At the conclusion Of Mr.. st. Johns
statement the committee took a recess,
a2k ag the witness to return for exam
ia ion.
Il want to combat every statement of
every banker who has appeared before
YOU" said Mr.. st. John, as an indica-
ton OF the line of questions he desired.
st. Johns Remedies.
After the recess Representative Cul-
berSOn, of TeXaX, questioned Mr.. ST.
John as to the remedy he would pro-
pose for the present condition. The
witness presented bill as remedy.
1t provides for silver coinage, on the
same basis as gold. To meet money
Strlngency the bill provides for coin
certificates based Oh bonds hypothe-
Gated by the banks in such Quan-
: tlty as the secretary of the treas
ury may determine. Mr.. st. John said
NJ
silver basis for a time, thereafter both
metals would circulate. AS to the Car
Isle plan, MIR. st. John said it would
fall fiat" Banks would not accept it.
They would become state banks. But
the secretary'S bill was better than the
Baltimore plan.
Chairman SprInger-Would the cur
rency under the Carlisle plan be safe?
Mr.. ST. John-Tnere would be no cur
rency Issued by them. They would not
accept 1t. Instead Of that you would
have the worst panic OH record.
lie pointed out that the safety fund"
under the Carlisle plan was to be accu-
mulated in small percentages, and
would not be realized for ten years.
In the meantime for the next ten
years there would be no safety fund
behind the proposed bank notes. Mr..
st. John said the bankers before the
committee mad weighed the retirement
Of greenbaeks, but he regarded as pre-
pOster0us that 1916, ,000.000 Of non-inter-
est~bearing greenbacks should be re-
tired by the government at the
very moment that the govern
ment was issuing S5O,O000OO of
3 per cent bonds> The witness said
state banks would be just as objection.
able today as they were in the past.
Whatever system is adopted should be
under federal control, and thus be uni
form the country over.
Representative Sperry-Are we on
gold basis today?
MIR. ST JOhn-Decidedly yes.
Mr.. Sperry-And your bill would
carry us 10 silver basis?
Mr.. st. JOhn-For the time being.
Within two years we would be on true
bl-metallic basis, both metals clrculat-
ing equally.
In conclusion Mr.. St. John criticised
statements made by Comptroller of the
Currency EckIes and Horace White be-
fore the committee.
This closed the weeks hearings. The
committee then went into executive
session, with view OF determining on
the currency bill to be reported.
GROVER Is TIRED.