Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-05-10
''You do not consider this a strictly hon.


the proposition by which they would force
great and honorable nation to become
party to a fraudulent transaction. the VIC
Tins of which shall be Its own people: or
Of their further proposition that the gov
eminent having become implicated shall
receive these false tokens In payment of Its
just dues. No such bald-faced proposition
has ever before received the serious con-
find their chief allies among those who be-
neve that we need a larger volume of cur
rency to proftably carry on the business
operations of the country. They demand
1t no matter in what way it comes. or
what its ultimate cost to the country may
be-"
Currency Reforms Needed.
you consider, do you not. Mr.. Coombs.
that our currency laws are defective and
need revision?"
Eyes. While believe that the volume of
currency Is sufficient and more than suffl-
Client for our wants. If properly distributed,
I am convinced that there is lack of
proper distribution, and that by wise and
safe amendments to our banking laws we
can remedy this defect. I believe that this
demand can be safely met, and at infin-
itely less cost than that involved in the
proposition of the silver propaganda, and
by meeting it We shall deprive them of
their strongest supporters. Even green
backism. pure and simple, would be more
for we could limit the amount of our is
sues of government paper by action of
Congress: but with free and unlimited COIN
age Of silver and the consequent unlimited
issue Of silver certificates we should take
away from the government Of the country
the power of limiting 1t at all.
mo large portion Of our people would
sreenbacks unless It was disguised under
such plan as is proposed by the silver
propaganda While believe that the
volume of currency Is sufficient and more
than sufficient for our wants, taking the
country as whole. am equally well con-
WINGED that owing to defects in our bank
ing laws there Is a great lack of proper
distribution of 1t. That the natural ten
dency to accumulate at the great financial
centers to the detriment of other parts Of
the country Is increased by some unwise
provision of our laws We frequently find
that money is loaning in New York at 1
or per cent per annum, while 1t Is worth
or per cent per annum in some parts of
the west or south. Such state of things
is not desirable either for New York or for
pie would be glad to have 1t changed"
Changes In Ranking Laws.
But can a plan be effected by which
these objections can be overcome?'
Eyes. This. I believe. can be easily eff
fected by change In our banking laws and
by giving the right to establish state banks
the security of such issues. I would not
make it obligatory upon such banks to re-
deem their bills in Washington or at any
of the financial centers. Their circulation
would then be practically confined to their
own immediate neighborhood or state, and
assist In carrying on the homo industries. I
believe that such banks could exist along
side OF the national banks without serious
injury to that system. for they would profit
by the broader circulation Of their paper,
and would naturally, on account of their
connections. become their medium for dis
tant transactions. There Is one thing that
We must recognize. and that Is that the
conditions existing at the time of the es-
Enlistment of our present banking system
no longer prevail. and that it must be ad-
jrsted to meet the demands of the new
order of things. We have too long ignored
the demands of the west and south for
such change in our system as will give
them a better chance to secure their proper
share of the circulation of currency. We
may say that there is sufficient bank circu-
iation for the wants of the country, and
may thoroughly believe 1t. But they know
their wants better than we do, and a per-
sistence on our part will continue to do as
1t already has done, excite sectional jeal-
ousies and foster the growth Of rank finan-
cial heresies.
Although upon the surface the present
greater influence on the part of govern
ment in the matter of currency, l think
that l discover that the underlying motive
Is the resentment at the part it has taken
In controlling the details Of financial mat
tiers that under normal conditions should
have been left to the machinery of COM
merce; at all events, it Is a legitimate result
OF 1t. We have not been satisfied to legts-
late upon broad lines within which auto
matte action might have existed, but have
brought the strong hand of government in
to every detail. A sudden change of policy
may bring temporary trouble or confusion,
III ho hDd off, 1,,,l
those which will result from a persistence
IN a course that has been abandoned by
every great commercial nation. Our govern
ment has not only assumed the power to
regulate the currency, but in doing SO has
also taken upon itself responsibilities that
should have been avoided.
mere is, for instance, no good reason why
the task of maintaining the parity of gold
shoulders. 1t is one of those things that
any nation enjoying an average degree of
prosperity can afford to leave to the action
or commerce. and the laws of supply and
demand we have much to do before we
can get back to normal conditions and the
result of attempts at legislation upon flnan-
cial questions in the Fifty-third Congress
were not encouraging. Nevertheless, the
discussions threw flood of light upon our
position in relation to the banking question
and convinced us that the government can
not remain in the banking business with
any advantage to itself or to the country,
easy to solve the problem as to how we can
retire from it.
No Compromises.
I'm conclusion, I wish to say that we
shall have to meet the enemies of sound
money by altering our banking system In
such a way as to give more currency to
the sections of the country that demand it.
AM thus withdraw from the ranks of the
silver men those who have no personal in
terest in making market for that metal.
We fortunately have two years IN which to
make these changes, and IN which to push
forward the campaign Of education
the violence of the assault oonvinces me
that no compromises will be accepted. and
mono should be offered. Experiments in the
way Of compromises have been very ex-
pensive and demoralizing to the country.
and should not be further encouraged. 1t
is due to the business interests of the
country that we shall determine, as soon as
possible whether we are to have an honest
currency upon which they may base their
business operations among themselves and
with other nations or whether we are to be
governed by the wild theorists who, Inn
PEELED by selfish motives or political am
biuons ignoring everY lesson tof history,
would establish conditions which would
separate US from the other commercial ma
- 90 = 6ar