The Saint Paul globe., 1896-12-19
CHAMBER OFC0MMERCE DISCUSSES
THE GOVERNMENTS RELATION
TO MONEY DRAINS.
MAKE A BIG FINANCIAL POOL
AND LET THE BANKERS AND CAPI-
TALIsrsg TAKE CARE
isrOF 1T.
MONEY suPRLY AND THE PRICES.
Their ReIations-Are Weighed by the
Members Of the Chamber Mt
Length.

The financial problem now confront
ing the nation was given a thorough
| discussion at a special meeting of the
chamber Of commerce, called last night
Tor that purpose. w. B. Dean, of the
chamber committee on banks and bank
ing, took an active part in the discus
sion and started the ball rolling, so to
speak Said he:
The retirement of greenbacks, to my
mind, does not mean contraction. Just
as water seeks it's level, so the money
VIII flow into the vacuum, or where it
Is needed. From the close of the war
until 1878, when specie payment was re-
sumed, though the volume of money did
not increase, prices constantly fell''
Mr.. Dean cited other periods of finan-
clal history, showing that vast in
creases in the volume of money had
not afTected prices, and adduced these
instances to show that the amount or
volume OF money had nothing to do
with prices Mr.. Dean said he had no
| reverence for the greenbaek, and did
net fear the result Of the retirement of
| the greenback
Col w. P. Clough at this stage said
that the report of the committee was
| submitted, not as the recommendation
| OF system Of finance, but rather to
| serve as a basis of discussion. Col.
| Clough did not consider that any mem
! Der of the committee felt himself
| bound by the report. The report start
| ed Off with a proposition to retire the
greenbacks without proposing that any
thing be put in it's place
Col. Clough said that he con-
sidered it would not be wise for the
chamber of commerce to demand a
reduction Of the value of the currency
| without recommending the substitution
of anything. q
Mr.. Dean said that there was only
$135; ;000, 900 in greenbacks in circulation
| although people talked about the re-
tirement Of $345.000,0 600 in greenbacks
| These greenbacksf were only the prom
issory notes of the United States, pay
| able on demand The United States
| bonds differed from the greenbaeks
! only in respect to the time of payment,
| the bonds payable in the future. If
/ $346, ,000, 600 in bbOnds were burned up
the people would shout with joy az
/ the Wiptng out such a government
debt But when it Is proposed to re-
| tire $346, ,000, 900 in greenEacks. the peo-
| pie cry out that currency is about to
| be contracted and that in consequence
| prices will go up.
+. w. Anderson agreed with Mr.
| Dean that the volume Of money did
| not affect prices, notwithstanding the
| general impression that contraction
| or currency meant lower prices. Mr.
Anderson, therefore, deemed it unwiSe
| to urge contraction without offering
| substitute. If the national banks
| were not hampered by the laws thei,.
business would be profitable and there
| would be an abundance of currency.
| But if stringent laws hedging the
| banks swere passed, the banking bust.
ness would cease.
Bank Examiner Kenyon suggested
! that If the greenback was to be re
! talned, 1t should be made an interest
| bearing obligation. Mr.. KENYON said
| he did not believe the people would
ever consent to a national bank cur
fency not secured by the government
| A. B. Stickney said he had no doubt
| that the issue of the greenbaeks orig
| lnally was a stupendous blunder and
| that their continuance was a stupend-
| Gus blunder. 1t was a raisnomer 10
call any promise to pay money, money.
| The treasurer of the United States
| ought to be abolished Yes. the United
states treasurer performed a function
no bank could perform The United
| states treasury furnished the means
| OF international exchanges. How could
| the national banks do this? The is
suing OF currency by the national
| BANKS under the existing conditions
4 p
| IL the greenbackS were retired Tho
| greatest function of the bank is not TO
| issue currency, but to receive deposits
and loan four, Ave or ten or fifteen
times as muchitmoney as they've got.
| Ioday the banks know they're not go
ing to be called on for gold for export.
| Ii they were, they would be uneasy
| from morning till night. This was not
to say that there was not enough gold
| on the contrary there was an abun-
| dance OF it. There was no system Of
banks that could sustain the present
pumping OF congress, unless they were
SO arranged thatgall that is pumped
out, is eventually precipitated into the
| bank again. You draw your money
out Of one bank, but you deposit it in
4 another. 2
IF YOU establish national banks al,
over the country the banks of New
York will be called upon to redeem
In gold, and will necessarily refuse Go
! accept the national bank hills IF a.
Paul.
England, with its area less than
Minnesota has 35,00000O people. Build
| renee around the British Isles ana
with all their productive capacity from
the SOIL, the mines and factories the
| people would starVe to death within a
year. Tney lived upon their commerce
ana their, interest. The. country re-
ceiyes enormous sums in the way OF
interest. Why, we are paying interest
| on their credit. They are simply loan
ing US their credit They say we bor-
row their money. but have found that
| we have sent them millions more than
| they have sent us. We are sending
| them more goods than they have been
selling for the past thirty years, and
yet we are In debt to them all the
| time.
''The Bank of England manages the
foreign exchanges, as the United
States treasury does In this country"
Col Clough, in speaking on the gen
eral subject, called attention to the
fact that there were $4,000, ,o00, 900 in
railroad bonds.e goid-bearing, held by
European capitalists. This, with the
redemption of greenbacks, was a con-
slant drain on the national treasury.
! He believed that the government
should go out Of the banking business.
and let the banks, establish and capt.
taiists establish a great financial pool,
| the better to meet this drain.
The chamber adjourned at the con-
clusion of Col. Clough's remarks.
Yale Men Disappointed.
| NEW HAVEN, Conn.,, Dec. 1S.--Harvard's q