The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-13

OF the country as gold does in every Otner
country. By the loss on our normal method
of issuing currency and on the enormous
and unnecessary balance kept in the United
States treasury. the indirect and direct,
needless. and therefore oppressive, taxation
OF our people can be shown To be about
s75.000.Go per annum- 1t Will undoubtedly
be a great surprise to many even OF the
intelligence of the men I'm this assembly to
know that the average balance of free
moneys i'm the United States treasury for
the year 1896, Notwithstanding an annual
deficiency i'm revenue of $i0.00.U0 a year.
was S29i. 156. 697. and the taxation of the peo-
pie upon this sum was still further in
creased at 8 per cent. interest upon ii by
81. $40. 402.
Ii Is also wise for Us to ask what our
strength is as compared with other nations
in case of war. and our position among
them. in view of the facts that / have Civ
en-. 1t is believed by conservative persons
that the Venezuelan message sent to Con-
gress by President Cleveland on Dec. IL,
1880. cost the country more than two bill
lion dollars, and the panic of 1893 many
Jimes that, and wholly and only because
OF the acknowledged unsoundness of our
financial system. Such a message sent To
the legislative assembly of England or OF
France, under their system of finance,
would have scarcely caused a ripple as
compared with its disastrous effect upon
the business of this country. We have the
highest authority for believing hat our
financial system would go to wreck at once
upon a certainty of war.
WAR AND BANKING.
The Hon. John Sherman. in a speech in
the Senate of the United States. said;
There is scarcely a doubt but that in all
conditions of trade or influence. except the
contingency of war. the whole mass of
United States notes and treasury notes now
in circulation can be maintained at par
with COIN
Ahai But how i'm case of war? And at
what cost in taxation?
And again. Senator Sherman, in an arti-
Gle in the April Forum. entitled Def
cheney of Revenue the Cause of Our Finan-
cial Ills" said page 1i4):
There is scarcely a doubt but that. In
all conditions of trade or finance. except
United States notes and treasury notes now
in circulation can be maintained at par
with COIN
In the contingency of war; We should
twinkle.
The banking system of France was the
savior In the Franco-German war. How
would ours be? That of France stood like
a shaft of marble high in the air. while
everything was wreck and ruin about il. 1t
WAS about their bank that the French peo-
pie clustered in the rehabilitation of the
nation. The Bank of France was the agent
of the French nation in easily and prompt
ly satisfying the enormous money indem-
nifty demanded by Germany.
The practical question for this conven-
ton to consider is what ought to be done
to correct the evils made SO clearly mani
fest? | answer We ought to be satisfied
with nothing that does not relieve the
treasury of the United States absolutely
and forever from any responsibility for the
current redemption" of any form OF paper
money. and that at once. We must Danish
tary system Bankers must be allowed to
manage the banking business of the coun-
try, as the farmer the business of farming,
the cotton manufactures the cotton bust
ness. the wooden the wooden business, and as
every other business is managed. and in
~dependently OF the government, other than
in the supervision of banks. as now. The
national bank act must be made as liberal
as Ii is possible to make it. consistent with
safe banking. No substantial relief can
come in any other way than this. Scarcely
any two banks In the country can be man.
aged i'm their details exactly alike. or safely
issue the same amount of currency. The
very largest discrimination must be left TO
the controller of the currency. Some means
must be devised to furnish the country a
board of supervisors of the whole national
banking system. as i'm other countries. and
that also must have the widest discretion.
WHAT is TO BE DONE?
The question over and above what ought
to be done is what can be done under ex-
listing circumstances? And the answer to
that. TO my mind. is entirely clear. Moth
ing. absolutely nothing, until the business
men and farmers and all workers inter-
ested i'm a sound currency-in the prosper
ity of the country-bring a pressure to bear
upon Congress that will compel a thorough
formatio of the whole system. On this
point let me read You what is said in an
authorized interview by the Hon. John NJ.
Thurston. of Nebraska:
Il feel that all proposed financial legisla-
ton can and ought to be postponed until
this country has a chance to test the eff
feet of the new protective tariff. We are
not, therefore, very much interested about
any money issue"
long? And yet | think he expresses the
prevailing opinion of both the Senate and
House of Representatives. and if that is
so nothing Will be done until the cyclone
strikes us, as it surely will. in 1900. Wait.
wait. has been the word for years. How
long must we wait?
England reformed her coinage in 1895. in
the midst of one of the fiercest wars of
the time. and with France then her bitter
cannot be retired. that is sure. An attempt
was made To retire them under the act of
April II. 1866. which the people demanded
repealed i'm January, 1869. when only $50. GEO.
OO0 were retired. 1t was attempted again
in the act of Jan. Il. 1873. which WAS re-
pealed on May 4, 1878. when only $35, 600. 900
were retired. In 1881 there was a bill passed
known as the Carlisle refunding bill. and
the outcry against the bill was so strong
that the President was compelled to veto
it. Neither, can the 1o-per-cent. tax on
State bank circulation be uncondi-
tionally repealed. While the legal-tender
notes. treasury notes and silver notes and
silver dollars exist that would mean chaos.
1t seems to me the only. practical solu-
ton of the question is TO put the cur
EDl III 1lt IVY ~
and OF every form OF currency proper
tionately upon the banks of the country.
where 1t is in every other country. Then,
in Justice TO them. and to compensate them
for the service. allow them to issue cur
rency against their assets to an amount
equal 10 the amount of the legal-tender
notes they assumed the current redemp-
ton of.
Furthermore. the people never will con-
sent TO the use of any currency the pay
ment of which is not fully guaranteed by
the United States treasury in case of the
insolvency of the bank that puts ii in cir
culation. 1t has been proved by fgures
carefully made that a small tax of 2 mills
per annum on the currency thus issued by
the banks against their assets. retaining
the provisions of the present law as TO the
currency of banks having the first lien
upon its assets. will fully compensate the
government for any loss that could come
TO il from guaranteeing such notes.
At the conclusion of Mr.. Walkers adj
dress MIR. ingalls,. of Cincinnati. moved that
the convention take a recess until : O'Clock.
Before putting the motion the chair asked
the secretary To read an invitation. which
was from "a committee representing the Art
Association of indianapolis. TO attend a re-
ception to be given at the Propylaeum. The
thanks of the convention were extended to
the committee.
With MIR. Ingalls's consent. Il motion was
then carried Offering the floor To Mr.. Har-
son Rhodes upon r~easSemhli1g at ) o'clock.
The convention then adjourned.
(For Night Session See Fourth Page.)
------