The Providence news. (Providence [R.I.]) 1891-1906, 1896-03-14
HARVARD WON.
princeton Men 0utcIassed In tn,
Great Forensic Battle.
CRIMSON HAD THE NEGATIVE
In Discussing Retirement Of
Legal Tender Notes.

wards young orators won the competitive
debate with Princeton last night, and the
Crimson's long record of oratorical tri-
umphs remains unbroken. 1t was an able
debate. and. as the judges said in render
ing their decision, IL reflected great credit
on both sides.
Where Harvard won was through their
more perfect acquaintance with both sides
OF the question and their facility in pick.
ing TO pieccs'th points made by the visi-
tors, while the Princeton speakers seemed
TO rely chiefly on their set speeches, and
did not succeed so well in refuting the
arguments OF their opponents.
Fletcher Dobyns carried of the palm
for Harvard, by his clear statements and
clean cut delivery, while Youngman
proved the most eloquent speaker. j. Il.
Warren, although having been sick all the
week, presented an able argument-the
best in substance on the Harvard side.
For Princeton, McElroy was far and
away the best speaker His diction was
clear and easy and he drove home his
points with force and eloquence. Loet-
scher, too, spoke ably.
At the close of the debate the judges,
Professor Arthur Il. Hadley OF Yale, Hon.
George Fred Williams and Professor
Richard Mayo Smith Of Columbia, an
nounced that after some hesitancy they
had accorded the debate 10 Harvard. The
verdict was received with tumultuous APP
plause and three hearty cheers were given
for the victors.
The question was: Resolved, That
congress should take immediate steps to-
ward the complete retirement of all the
legal tender notes" Each speaker was al
lowed i2 minutes for his first speech. and
for closing the debate each was given five
minutes more. Harvard had the mega
tive.
Ex-Governor w. X. Russell presided,
and, after bright aud pungent opening
speech he introduced tho first speaker
Herbert Ure, 80, OF ofPrinceton, who opened
the debate for the affirmative
The Debate.
He opeEod with brief summary OF the
history Of the legal tender notes, followed
by an explanation of the present financial
situation. He thea proceeded TO prove the
governments inability to properly assume
banking functions. An examination OF
these functions shows: First, that issue
is such function and Is dependent on
discount and deposit; second, to insure IN
adequate reserve fund.- easily convertible
and definitely calculable, assets are neces-
sary; third, for banking functions to be
successful. the credit issues must possess
elasticity, as in the national bank system.
From these three considerations" he
continued, "the affirmative holds that
legal tender notes are unfit for use as a
means OF credit issue, for in the first place
the treasury has no deposit system; Sec
ondly. It's assets are not convertible or
definitely calculable and hence do not
constitute an adequate reserve fund;
thirdly, its credit issue is inelastic, since
the amount cannot be speedily adjusted
TO the country needs, and congress is un-
fit to carry on such business. Further
more historical evidence shows that the
keeping OF these notes in circulation is
violation of the governments original
intention concerning them"
Harvard's Opening.
w. s. Youngmau Of the Harvard law.
school made the opening speech in the
negative He said in substances. ave
stand for sound money, but favor secur-
Ing the most economical currency pos
sibe and yet retain perfect assurance OF
safety. Since the resumption Of specie
payments the United States notes have
always been unquestionably at par with
gold.
"From Jan. /, 1879, to July. 1890, our
S346, 600, 900 legal tenders gave the treasury
no moro trouble than they would have
done had they been all gold certificates.
and during that time only Sos, 600, 600 of
them were redeemed. During the same
period. $780, 900 in gold was presented
at the treasury tc cover the withdrawal of
legal tenders. We admit there are defects
in our present financial system, and are
emphatically for reform.
1--WE maintain. however, that such an
indiscriminate remedy as the retirement
OF all the legal tenders would only plunge
our country's finances into new and
greater embarrassmcnts. None of the
present evils Is inherent in the legal
tenders themselves. The history of the
recent troubles contains not single fact
which can weaken the fundamental eco.
nomic principle that the government
should supply the country's minimum OF
paper money"
The speaker then went into n minute
analysis of the causes of recent financial
troubles. and argued that the chief reason
for them was the fear that the silver
purchasing act of 1890 would depreciate
the silver standard. This resulted in a
general unloading OF American securities
by foreign investors and the withdrawal
of gold from the country.
Princeton Again.
Robert NJ McElroy of Louisville, Prince.
tons second speaker, continued by prov.
Ing that the existence of legal tender
notes seriously injured our national credit
by undermining confidence as to our
ability to settle our obligations I'm gold.
They necessitatc gold reserve and act as
q means for its depletion, which operates
TO destroy confidence, leading to the with.
lrawal of capital by foreigners.
He continued by showing that the exist.
snce Of legal tcnder notes creates aud
spreads serious financial hereses. Money
Is an educator, nc said, "and legal tender
has served 10 teach tho people that q gov
ernment cannot stamp and create dollar
or hundred dollars, nor can IL pay it's
debts, by merely Issuing its promises"
He pointed ont the fallacies OF the inila-
ton bill of 1874. and tho principles of the