St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-04
HEPBURN SEES DEFECTS,
From His Point of View, in
Secretary Carlisle's Cur
rency Plan.
NON PARTISAN METHODS
OF Currency Reform Sug-
gested by a st. Louis
Banker.

ton occurred at the Hotel Vsndome to-
night, with over 200 guests present. At
the head of the table sat the president
of the association, John A. Lane, on his
immediate right were Hon. A. P. Hep-
burn, president of the Third National
Bank Of New York; Thomas G. Catch
ings, congressman from Massachusetts,
and Hon. William Dodsworth, of New
York; at his left sat George E. Leigh
ton, president OF the Commercial Club
Of st. Louis; Hon. Roger Wolcott,
lieutenant governor of Massachusetts,
and Hon. William F. Barrett. congress
man.elect FROM Massachusetts.
President Lane opened the post pran-
dial exercises. Turning attention to the
Banking and Currency System Of the
United States," which was the subject
of the evening, he suggested that new
banking and currency bill should be
constructed. sit should be strictly ma
tional, every note issued bearing the
stamp of the comptroller and having
the added security of guarantee
fund.-" he said. "This means no state
banks. We cannot part with national
currency upon any consideration, how
ever"
President Hepburn began his address
by saying that our
Currency System Is Wrong,
ill-coneeiyed, unresponsive to the vari
GUS interests Of great nation, and
prejudicial to renewed and stable pros
perity. He then entered into history
of the greenback, the OutgroWth Of
war exigency, and also sKetched the
career of the national banking system.
Under the Bland and Sherman acts
fixed amounts of currency were put into
circulation monthly in exchange for
silver purchased. fixed, arbitrary
amount which could not be increased,
however great the need of commerce,
nor diminished, however great the
plethora Of money. Since the govern
ment can only put into circulation
money in payment for debt or la
exchange for value, this criticism Of
absolute want of fexibility or
elasticity must apply to all government
currency. AS long as revenues eX-
ceeded incomes funds accumulated in
the treasury. frequently creating
money stringencY, until the secretary
would even up matters by purchasing
bonds in the open market-a sort of
STEADY by jerks" method OF admins
traton. Now, with expenditures eX-
ceeding income. we have the novel
spectacle of the government borrowing
money for the avowed purpose of
strengthening its credit - individuals
pay up to strengthen their credit.
If a circulation is to continue based
on United States bonds. can see no
reason why state banks should not be
allowed to take out circulation as well.
Let them deposit the bonds, maintain
the per cent redemption fund. and
have circulation issued by the comp
troller on the same terms as national
banks. He referred to Secretary
CarIisle's Currency Reform
scheme as containing some good features
and some decidedly Objectionable ones.
Its provision for the safety of circulate
ing notes he considered ample. Curren-
cy should be issued against all the assets
Of bank, not any specified portion.
The proposal to relieve state banks
of all taxation, while leVylng
tax of half OF per cent
upon national bank circulation
was a discrimination which would place
the national banks at disadvantage.
similarly the restriction upon national
banks against notes of less than $40.
while no restriction was placed upon
state banks.
Every consideration Of public safety
required that institutions issuing circu-
lating notes should be under one central
control, with uniform laws, uniform re-
ouirements and uniform usage.
In conclusion he said: We want hon.
est money and we want honest admin.
istration of public and private trusts,
and we should strive to obtain the same
by influencing legislation and by arOus-
ing the coercive power Of public senti-
ment.
Hon. T. c. Catchings. of Mississippi.
was the next speaker, and was followed
by Hon. W. A. DodsWorth, Of New
York, and CONGRESSMAN D0lliver, Of
Iowa. The latter said:
1t is not necessary to discuss the
wisdom of the many changes pro-
posed. Even the sudden approach
of the millennium would paralyze
trade at least till people got time to
see what a genuine millennium looked
crack of doom than the dawn
of the perfect day, would operate
even worse. Give us back the prosper-
ity of 1892. and the American people
will 90 Joyously on their way without
any further suggestions from the secre-
tary of the treasury. Take the badges
of idleness and poverty from the work
ing people of the United States, and |
they Will manage to struggle on even |
without receiving the blessings of life
on the Baltimore plan.
Col. George F. Leighton, Of st. Louis. |
was the last speaker. He recommended |
the appointment of non.partisan COM |
mission to formulate plan of currency |
and had figures to show that |
state banks divide equally with national
banks the commercial field. He also
advocated extending the national bank
ing system by recognizing the state
banks as branches.