The herald., 1895-10-18
As Outlined Before the Bankers
Convention
A COOPERATING COMMITTEE
To Assist tine Governments Executive
Department
Resolution Adopted by the Convention
Looking to the Maintenance Of
the National Credit


ATLANTA, Ca, Oct. 17.-Edward At
kinson of Boston delivered an address
before the Bankers association today ad
vocating the issuance of 500. 600. 600 in
bonds by the government to redeem and
retire the outstanding notes of 1890. Mr..
Atkinson said in part: 1.-The suggestion
of the appointment of a committee or
commission to cooperate with the exec
utive department. OF the government
might be supplemented by sumo further
practical sugg gsstions for attaining the
purposes aimed at"
After outlining what constitutes our
present non.system he submitted the fol-
lowing as a remedy for existing financial
ills:
Fjrst-The government might sell in
terest bearineg bonds to such an extent
for gold as to increase the gold reserve up
to the point when the confidence of the
community in absolute redemption in
gold coin will be revived, but no living
man can determine what that reserve
of gold m ust be.
Second-The true way out is simple
and ready one. The treasury may pro-
vide itself with gold by the sale of bonds
the national banks, to meet any possible
demand of the people for the redemption
OF the government notes as fast as they
are presented. In that event, if the vol
ume OF paper money is redundant, it will
be reduced by redemption if 1t is not
redundant it will continue In circulation.
There may be no present question
about the lawful power of the secretary
OF the treasury to reissue the legal tender
notes of 1S62-63, under the povisions OF
the act which has converted that loan
into permanent loan until further &C.
tion OF congress. There is, however, very
grave doubt of the lawful power of the
secretary of the treasury to REISSUE the
treasury notes of 1890 which have been
paid in coin.
There is no question about it being his
duty to cancel and destroy all the notes
of this issue whcih 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 dollars
coined therefrom under this act snail al
ways be no more and no less than thu
amount of MISUNDERSTANDING under the
act. 1t has sometimes been held that un-
der this provision it might be the duty
of the secretary OF the treasury to reissue
the notes which are not paid IN silver,
notwithstanding the fact that it is left
entirely to the discretion of the secretary
to pay these notes either in gold or in
silver, according to mis- Judgment. 1t is
urged that if these treasury notes are
paid in gold and are not reissued, the
amount of silver in the teasury at its cost
anu the dollars coined therefrom will ex-
ceed the amount of the notes outstanding
which were issued under the act. What,
then, shall the secreatry do with this sill
yer? What will congress do with it?
Who can tell?
The way in which the banks may now
cooperate with the treasury so as to in
stanJly remove all cause of distrust and
discredit would bs for a com bination of
the national and state banks to offer to
purchase sucn amount OF the four per
cent thirty-year bonds as would suffice
to withdraw all of the treasury notes of
1890 which are now in circulation. Less
than 10000, 900 of bonds would ne re-
quired to cover in all the outstanding
notes of 1890.
l hold that it is not only the privilege
but the duty of the national banks to
place all their gold at the command of
the treasury. In other words the treas
ury is but one of the national banks of
issue upon its absolute solven cy and DOW
er to meet every demand for prom pit re-
demption rests, not only its own credItE
but that of all the national banks alike.
If the banks cannot trust the treasury
what is their own credit worth?
MIR. Atkinson closed by expressing the
hope that committee representing this
association would be appointed to cooper
ate with the government, by which COM
mittee .the several PROPOSITIONS made
should be CAREFUL" considered.
Indirect references to President Clsve-
land in Atkinson speech were loudly
lapplauded. The convention adopted
resolution offered by w. II SRahwan of
Philadelphia that committee of seven
or eleven OF each section of the country
be appointed by the bankers association
to confer with the secretary of the treas
ury with reference to cooper alton OF the
banks in maintaining the national credit
Mr.. William P. st. John of New York
addressed the convention in favor Of the
free coinage of silver. He was listened
to respectfully but without enthusiasm,
the delegates being unit.in opposition
to the policy.
Eugene II. Pullen was nominated for
president and elected by acoIamation.
and Robert J. Lowry of Atlanta was
made vice president. The convention
then adjourned sine die. This evening the
delegates were entertained at genuine
Georgia bar rbecup