Evening star., 1895-10-18
ADJOURNMENT OF BANKERS
Edward Atkinson Advocates Reform in Our
Monetary System.
Urges the Retirement of Greenbacks
by the Issue of Bonds - Mr.. st.
John y1ea1. for silver.

Mr.. Edward Atkinson, who spoke upon
practical Suggestions for Reform Of the
Monetary Syseem," before the bankers
convention at Atlanta, Ga, yesterday, said
In part:
II need not say that unless some way is
found under existing laws for the with
drawal by the government of whatever
excess of legal tender notes there are now
in forced circulation, or unless Congress
shall enact laws to that end if present
laws will not permit the Secretary to act,
all our efforts to reform our monetary
system will fail. In that event there can
be no such cooperation between the banks
and the treasury I hope for, and each
class of money corporations must protect
itself until through recurring panics and
financial crises public opinion is brought
to the point of compelling Congress to act.
'I do not anticipate any such necessity.
The existing laws are adequate, and one
panic has sufficed-public opinion will sus-
tain effective action. and If that power is
used no Congress. no matter how bitter
it may be in Its partisan quality, will dare
interfere with the application of existing
acts to the remedy of the evil. We must
adequate supply of full legal tender money
The lawful money which is of full legal
tender in this country now consists of four
kinds:
Second. OF silver dollars of full legal
teEder. represented in circulation by silver
certificates, which are not themselves a
legal tender
Third The legal tender notes which
were issued for the collection of a forced
loan during the conduct Of the war in 1862
and 1853.
Fourth. The legal tender treasury
notes. which were issued under the act
Of $780,. for the collection of forced loan
for purchasing additional silver bullion.
Why Government Credit is Impaired.
1.-The fact cannot be too urgently or too
often stated that the reason why the
credit of the government notes has been
impaired, and the reason why the debt
bearing interest has lately been increased
sl63, ,0Oo, 600 and may be increased $1O0, ,OOO.-
COO more, is because the government has
incurred debt due on demand by means
of a forced loan to the amount Of over
$780, 900. 600 for the purchase of silver bull
Lon under the Bland and Sherman acts.
The mine owners and bullion dealers have
put the silver upon the government, which
was forced to buy it, under the Bland and
Sherman acts. The government has paid
for the silver by Increasing its demand
debt S5OO.OOO,00O in legal tender notes The
silver miners and bullion dealers have been
enabled to force these notes into circula-
ton under the legal tender provisions. The
mine owners and bullion dealers have Sc
cured their profits, and the community
must pay the debt and interest and meet
the loss by way of taxation. The Bland
ard Sherman acts have cost us $780, 600, 900
less the valus1ofD the bullion in the treas
ury and the dollars coined. There are now
but two ways out of these evil conditions.
Two Ways Out.
First. The government might sell inter-
est-bearing bonds to such an extent for
gold as to increase the gold reserve up to
the point when the confidence of the COM
munity in absolute redemption In gold coin
will be revived but no living man can de-
termine what that reserve of gold must be.
Second. The true way out is a simple
and ready one The treasury may provide
itself with gold by the sale of bonds, so as
to enable ii in cooperation with the ma
tional banks to meet any possible demand
of the people tori the redemption of the
government notes jas fast as they are pre-
sented.- In that event If the volume of
paper money is redundant it will be reduc-
ed by redemption; if it is not redundant 1t
will continue inecirculation.
There may be no present question about
the lawful power of the Secretary of the
Treasury to reissue the legal tender notes
of 1862 and 1853 under the provisions of
the act. which has converted that loan into
a permanent loan until further action of
Congress. There Is, he wever, very grave
doubt of the lawful power of the Secretary
OF the Treasury to reissue the treasury
notes Of 1880. which have been paid in
coin. There Is no question about it's being
his duty to cancel and destroy all the notes
OF this issue which are paid in silver dol
lars.
There is a clause in the Sherman act
which provides that the amount of silver
bullion at its cost and the silver dollars
coined therefrom under this act shall al
ways be no more and no less than the
amount Of notes outstanding under the act
1t has sometimes been held that under this
provision 1t might be the duty Of the Secre-
tary of the Treasury to reissue the notes
wnlch are not paid in silver, notwithstand-
frnrs ftA fn<,
discretion of the Secretary to pay these
notes either In gold or silver. according to
his Judgment. 1t is urged that If these
treasury notes are paid in gold and are not
refssued the amount of silver in the treas
ury at its cost and the dollars coined there
from will exceed the amount of the notes
outstanding, which were issued under this
act; What. then. shall the Secretary do
with the silver? What will Congress do
with 1t: Who can tell?
How Bank. Might Help.
'The way in which the banks may now
cooperate with the treasury so as to in
stantly remove all cause of distrust and
discredit would be for combination of
the national and state banks to offer to
purcha3e such amount of the 4 per cent
thirty-year bonds as would suffice to with
draw all the treasury notes of 1890, which
are now in circulation. Less than $90,OO0,
600 of bonds would be required to cover in
all the Outstanding notes of 1880.
Il hold that it is not only the privilege,
but tho duty of the national banks to
place all their gold at the command of the
treasury; in other words, the treasury is
but one Of the national banks of issue, and
being the hank of largest issue. upon its
absolute solvency and power to meet every
demand for prompt redemption rests not
only Its own credit, but that of all the ma
tional banks alike. If the banks cannot
trust the treasury what is their own credit
WORTH"
Mr.. Atkinson closed by expressing the
hope that 4 committee representing this
association will be appointed to cooperate
with the government, by which committee
the several propositions made should be
carefully considered.
Mr.. William P. ST. John of New York ad-
dressed the convention in favor of the free
coinage of silver. He was listened to re-
spectfrlly. but without enthusiasm, the del
egates being almost unit in opposing that
policy.
Eugene H. Pullen was nominated for
president and elected by aoclamation. and
Robert j. Lo&ery of Atlanta was made
vice president. The convention then ad
1ourned sine die and the delegates were en-
tertained at a egerlaine Georgia barbecue.