The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-13
FIRST PLANS PROPOSED.
Scottish Banking System-Mr.
commission Suggestion.

Mr.. Smalley. of Minnesota. called for the
regular order of business. the Introduction
of resolutions and papers for reference to
the m on resolutions. at the con-
clusion of Mr.. Rhoades's speech. H.. NJ.
Douseman being recognized. presented a
plan which was read by the secretary.
This plan embodied a bill to be presented
to Congress. II called for the appointment
of a commission of nine persons 10 consti-
tute a monetary commission. to be APP
pointed by the President; one member from
the Senate committee on finance. one from
the on banking and currency of
the House of Representatives. the other
members to be selected from particular sec
tons of the country. not more than five
members to be of one political party; no
member, except the senator and representa-
tive specified. 10 be an officeholder under
the United States: this commission 10 en-
ter. as soon as possible. upon the consid-
Grafton of the currency and banking affairs
Of the United States, and the laws relat-
ing thereto. and their relation 10 the bust
ness affairs and industrial conditions of the
country; to report to the Congress not lat
er than Jan. l, 1898. a concise and exact
report of their deliberations conclusions
and recommendation covering the subject.
The plan further provided that the COM
mission should meet in Washington and
that its members, excepting the senator and
representative on the commission. should
be paid a proper amount for their services.
Mr.. Martindale. of Indianapolis. pre-
scented a plan prepared by l.. +. Claypool,
which was read in part by the secretary.
The five minutes allowed expiring before
the conclusion had been reached, the paper
was referred without further reading 10 the
committee on resolutions.
This plan in the opening gave a resume
of the banking laws of the United States.
beginning with 1852 down to the present
time, together with some account of the
panics and monetary disturbances OF that
period.
SCOTTISH BANK SYSTEM.
Mr.. Chadwick. of Brooklyn. n. Y, offered
a resolution asking the committee on reso-
lutions to consider the advisability OF
adopting the principles of the Scottish
Branch Banks in the country's national
bank system. II will state. said Mr..
Chadwick. that the Scottish bank system
embodies ten principal banks. with a large
number of branches. Each bank has the
power to issue money redeemable i'm the
central bank. This system is found TO work
admirably. At any time when there is any
special call for money in any particular
section, all the money needed can be drawn
in from the other banks OF the system. An
other feature is the credit system. a young
man. known to possess the proper business
and moral qualifications. with the indorse-
ment of himself anu two responsible per-
sons. can secure n line of credits. The
money of the community was thus used
wisely to develop a particular industry.
I'VE must take into consideration the fact
that when Mr.. Bryan swept into view on "A
platform of Is TO ] he promised to solve the
him all over the country; but. although they
soon found the fallacy of his proposition.
that existed then exists to-day, and We
must, meet il fairly and squarely. The farm
er in the Northeast and the South. In the
Northwest and in Texas should be able TO
borrow money at the same rate of interest
as the business man in Brooklyn or New
York" (ApplauseD
ME-. Peet. OF st. PAUL. desire TO offer a
resolution passed by the st. Paul Chamber
of Commerce. ard will ask to have il read
by the secretary.
One of the features OF this plan was the
reduction OF the required capital of nation
al banks TO $25.00 or less in small
ties. II also Endorsed the issuing Of bank
notes up to the par value OF the bonds
which secured them.
The resolution was referred 10 the COM
mittee on resolutions.
Mr.. Tanner,-of Indianapolis-In order TO
relieve the apprehension OF some OF the gen
tlemen present. ! viii state that have
no plan. but that l Will b. very happy to
indorse any plan which will be for the in
terest of the country have drawn up "A
resolution which embodies-not the points
upon which wc~Shall certainly differ, but
fundamental principles upon which we Will.
are waiting to hear from this convention.
and IL this convention shall ADOPT the reso-
luton by unanimous vote; or nearly so,
IL VIII 20 ~ ,OiSAfrC VII "a AtiAt At8t
will command respect. Mr.. Tanner read his
resolution as follows:
Whereas. Our currency and banking sys-
tenn is such that business is seriously dis
turbed by frequent agitations OF the ques-
ton i'm which the stability Of our present
system IS involved, therefore be IL
Resolved, That il Is the sense OF this
convention that areviSion OF our currency
and banking system is necessary. and that
1t should be placed upon a sound and per-
manent basis
THAT we believe the government should
abandon the banking business and corkae
its monetary operations TO the receipt Of
money contributed by the people Tor its
support and the expenditure OF such money
for their benefit.
THAT the bonded debt of the government
should be efunded as rapidly as possible
by the issue OF gold bonds on long time at
a low rate OF interest. thus saving millions
of dollars annually by the difference In
rate of interest paid.
THAT the g~reenbacks and treasury notes
be retired as rapidly as they can be re-
placed by "A corresponding increase IN ma
tional bank Notes or other sound currency.
That we need a more elastic form OF
national bank currency.
That "A more thorough examination OF
national banks be required. and that tho