The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-10-16
MONEY THEIR THEME
MEETING OF THE AMERICAN
BANKERS ASSOCIATION
In ATLANTA.
UNUSUALLY LARGE ATTENDANCE

Our National Currency System--Ex-
Gov. Merriam's Currency Scheme
OutIined-- of Treasurer.
ATLANTA, Ga Oct. Is The Ameri-
can Bankers Association began its ses-
sion in the Grand Opera House this
morning at 10 o'clock with an unusually
large attendance of delegates, and lib
eral sprinkling of visitors and onlookers.
The Association was welcomed to the
city by Mayor Porter King, and to the
State by Hon. G. Gunby Jordan, Presi-
dent of the State Bankers Association,
in brief addresses. To these words of
welcome, President John J. P. O'Dell,
responded in behalf of the visiting bank
ers, and delivered his annual address.
The report of the Executive Council
was then read by Mr.. Z FL. PuIlen,
Chairman, and the Treasurer's report
was read and accepted.
President J. j. P. O'Dell in the course
of his annual address said
"a year ago, at your convention in
Baltimore, plan for the reformation of
cur national currency system was
adopted, and while the recommendations
of the association did not meet with uni
versal approval, the action of the con
vention gave -rise.-to most extensive
agitation of the currency question, both
in and out of Congress, and great deal
of valuable discu sion followed.
s'The effort of the association TO deal
with this subject has NOT been fIuitless,
and it is to be hoped that the agitation
thus ioitiated VIII cootinue until the
government shall abandon the issuance
of noes and m re perfect currency
system sh III ha adopted The evils of
our present system Were never more ap
ptreDt than to-3sy Daring tbe period
since we last me6 together oar cJunFry
has p asse thr ugh al tx7esionc that
viii no. soou be- forgotten Following
season Of universal liquidation aid dis
tres3. RI country was confronted bY
national treasury forced almost to tie
very verge of bankruptcy, aud was saved
from this only by the heroic and patri-
otic action of wise and courageous
president. For weeks uncertainty and
confusion prevailed, and were not allayed
until By tie sale of a large amount of
bonds the government recovered its gold
reserve That this expedient offered but
temporary relief, we have had ample
evidelce, and the signs are not wanting
to indie tie that we have yet more trouble
in store, unless we shall depart entirely
from the present makeshift and perni-
cious system of governmental note issues.
To day, were it not for the uncertain cur
rency system, we might we'll congratulate
ourselves upon the condition of affairs.
Abundant crops have rewarded the
labors of the husbaL Oman, the wheels of
industry arr moving more smoothly a. d
rapidly, confidence is taking the place of
doubt. assurance of hesitation, and alto
gether the prospect. but for one single
cloud, is full of encouragement. With
the increasing prosperity of the people
We may hope TO prosper, even as We
suffer with them in their misfortunes
To us, as bankers, is committed che duty
of maintaining the credit of our people
This we can do by ab drg by those p1i J.
-c.ples Of Fl ancial moral ty, the trut of
which time and experience have demon
strated"
Ex Governor Merriam, OF Minnesota,
read paper entitled 'The currency for
the Twentieth century, in which he out
lined a currency scheme His sugges
ton was:
THAT, say forty per cent. of the capi-
tai of a na' i0nal bank be invested ia
United S ates notes, and circulation
issued against the same, the bills re
naming in the hands of tie Treasurer
and currency to an amount equal to the
remaining sixty per cent. of the capital
stock be delivered to the bank for issu
ance when desired
Before the unsecured currency is for
11I l. h --I~
TO the treasurer sum equal to five per
cent of its capital stock as bank circu
lation safety fund, upon which money
the government shall allow interest at
the rate of three per cent per annum
The government in the assets of insol
vent bank be insufficient to reimburse it
for the circulating notes of defaulting
institutions, may assess each bank in the
system, pro rata, to an amount sufficient
to fully indemnify it for any losses in
CURED, but in any one year no lnstitu-
ton shall be assessed more than one
per ent of the average circulation
for the previous year. Inasmuch as
there are likely to be at least four thous
and bangs organized under any National
law, the Treasurer might act as redeem
ing agent for all of the banks, and each
bank, should at all times, keep with the
Treasurer five per cent of its capital
stock as a redemption fund, which fund
should be in gold coin, and held in trust
for the specific purpose intended. As
fast as notes are redeemed, the bank
should at once remit sum that wculd
repair any deficiency made by redemp.
tion, and new notes be forwarded
fThe government would receive sew
eral million of dollars per annum into
its Golfers to aid in paying its bills as
a return for the privilege granted the
banks. In add tion, the interest on one
hundred millioEs of gold now main
tanned in idleness, would be saved, and
the gold put into active use instead OF