The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-08-19
THE LEGISLATION NEEDED
BEFORE AMERICAN BANhhhS
ASSOCIATION AT DETROIT.
BANKS SHOULD ISSUE ALL NOTES
Other Notes Should be Retired and Govern
ment Go Out of Banking BUSINESSMAN
Ominous Prediction in Case of Fail
ure-- Monetary Commission.

At the meeting yesterday, in Detroit,
Of the American Bankers Association,
Mr.. John P. Branch, President of the
Merchants National Bank, of Rich
mond. a fnancier of accepted proml-
neuce. delivered the following address;
"Mr. President and Gentlemen:
"I am invited to suggest "What Legis-
lation is Needed in Respect to the Cur
Fency.'
81 maintain that our currency should
be the best. Nothing short of the best
will serve the higher and larger interests
of our country.
ats value should be fixed and stable.
at should be adequate to the needs OF
the country.
1T should expand and contract auto
matically.
at should be simple and uniform.
st should be so distributed throughout
our territory that every man entitled to
credit should be able to obtain its use al
q fair rate.
''Such an ideal currency is possible of
attainment if we approach the consldera-
ton of the subject with the determine
ton to overcome all prejudices, to forget
all petty interests, fully resolved, in spite
of difficulties, to give the country per-
feet medium of exchange.
1.-THE ignorance which surrounds the
currency question is profound.
''To reform our currency we must I'M
dertake and push to successful issue an
educational campaign, basing our instruc-
ton upon a broad foundation of recog-
nized economic principles, already clearly
demonstrated by the banking experience
of the world.
"We must not allow ourselvs to be dis
eouraged by the vastness of our under
taking.
"The interests of the people and the
bankers are one.
"The currency is the vital commercial
question of the day and upon the answer
of the American people much depends.
81 believe that answer will be wise. l
believe good sense and sound judgment
will prevail; but there is danger in delay
Our answer is awaited with interest
by the civilized world, for we stand in
the forefront of nations. Our national
progress is without parallel. Natural con-
ditions are helping us rapidly to emerge
from the depression of the past few years
depression easily and directly traceable
stand natural law and to our apparent
determination to be law unto ourselves
IN finance and economics.
1--WE are full of energy, hope and am
bition. Trade is reviving. But the basis
of all trade is the unit of exchange.
"What is the value of our unit? Perma-
nent prosperity cannot be ours while the
value of our unit is open to doubt. 1t is
essential we should define, once for all,
the meaning Of the word Dollar. Is it a
gold dollar, silver dollar, treasury
note, greenback, q national bank note?
The question must be answered. Each of
these dollars has a different intrinsic val
ne. Credit to-day keeps them at par.
"We know the value of an English SOW
ereign, a French franc, or a German
mark. In all exchanges they stand for
gold.
"The value of their unit fxed-ours I'M
certain-England, France and Germany
have prospered, while we have labored
under the shadow of deep distrust.
eve have lost valuable time.
I'VE must define the word Dollar and |
1t should mean, beyond peradventure of
a doubt, a Gold Dollar of the present |
weight and fneness of the United States
gold coin. That dollar is good for all, and |
everywhere commands respect.
'The paper currency Of England, |
France and Germany is bank notes, not |
government notes. They keep their reve-
nues ON deposit in their great chartered |
banks. There is a two-fold advantage in |
this The money Of the people, lying to |
the credit of the government in bank, is |
available for the use of the people, not |
idle and unproductive, as in the case of |
this country, where it lies in government
vaults. We borrow largely abroad. If |
the government money were available, |
we could curtail our foreign loans to that |
extent.
at is of grave import to the nation that |
the solvency Of the government should |
never be in doubt With government de- |
mand notes outstanding the question re-
turns, from time to time to unsettle bust |
ness, to destroy confidence.
''The greenbacks and treasury notes
should be retired. The experience Of the |
world in banking matters cannot be disre-
garded, and the government should retire
from the banking business. No other
frst-class power is in the banking bust
ness.
''The affairs of state, with which the
government must perforce cope, are so
weighty and serious, it is folly to COM
plicate them with business. The divorce
between government and banking should
be absolute.
'It has been we'll said, THE refinement
IN the use Of credit is a pretty accurate
measure Of national economic progress"
sour currency should be based on
q credit. All government interference q do
not say supervisory should be withdrawn.
'The function of government is to gov
ern. The legitimate function of banks is
to issue currency, receive deposits, buy
paper, and make loans.
"There should be no more interference
on the part of the government in the
banking business than in the milk bust
ness; but the government should see to it
that banks comply with reasonable, just