The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-01-04
FAULTS IN FINANCE
All Government Money Is In
flexible at Certain Times.
sPEEch 81 BANKER HEPsuRN.
An Individsai ssrsngthsns His Credit
Dv Psyi.e HIS Debts, tAs Un1tsA
States By Inersasang IAsn.

Boston. Jam 3-The annual banquet Of
the Boston Merchants Association oc-
CURED at the Hotel yendonse tonight.
vain over 30 guests present. At the head
al the table sat the president Of tke
mediate right was Hon. A. p. Hepburn.
president Of the Third National bank o<
New York: Thomas C. catcnings, con-
gresham from Mississippi. and Hon.
William Doisworrh, OF New York. AZ
his left sat George z. Leighton. president
Of the Commercial club Of 81 Louis:
Hon. Roger wncott, lieutenant governor
OF Massachusetts,. and Hon William E.
Barrett. congreSsman-elect from Massa-
cf5szsetss.
Mr.. Lane opened the postp-andial ex-
ercises. Turning his attention to the
banking and currency question: ct the
United States, which was the subject Of
the evening. he suggested that a new
banking and currency bill should be con-
structed 1T should be strictly national,
every note issued bearing the stamp OF
the comptroller and having the added
security Of a guarantee fund.-" he said
This means no state banks. We cam
not part with a national currency upon
any consideration whatever
President Hepburn began his address by
saying that our currency system IS wrong.
iil-conceived. unresponsive TO the va
rfous interests OF great nation,
and prejudicial to renewed and stable
prosperity. He entered into a his
tory of the greenbacks. the cugrowth of
q war exigency. and also sketehed the ca
49, l. - ~1-f-
der the Bland and Sherman acts fixed
amounts OF currency were put into circu-
iation monthly In exchange for silver pur-
chased, a fixed arbitrary amount which
could not be Increased however great the
need of commerce. nor diminished, how
ever great the plethora OF money. Since
the government can only put into eircu-
lation money In payment for debt, or in
exchange for values, this criticism of an
absolute want of fiexibiliiy or elasticity
must apply to all government cur
rency As long as revenues ex-
ceeded expenditures funds accumu-
lated in the treasury, frequently
creating money stringency until the
secretary would even up matters by pur-
chasing bonds In the open markets sort
Of STEADY by jerks methods OF admin
istration Now, the expenditure exceed
ing the income. we have the novel spec
tacle Of the government borrowing mon
ey for the avowed purpose of strength
eping Its credit. If a circulation IS based
on United States bonds, could see no rea-
son why state banks should not be al
lowed to take out circulation as well.
Let them deposit the bonds, maintain
the per cent redemption fund and have
circulation issued by the comptroller on
the same terms as national banks. He
referred to Secretary Carlisle's currency
reform scheme as containing some good
features and some decidedly poor ones.
Its provisions for the safety of circula-
ton WAS a discrimination which would
place the national banks at a disadyan-
tage similar 10 the restriction upon ma
tional banks against notes of less than
$40. while no restriction was placed upon
state banks.