The herald., 1897-01-24
They NAnIAcOMM|SS|ON
The Funding BiIIers Are
Still Scheming
senator WHITE DENOUNCES It
:. The Railroad Will Get the
Best of 1t"
THE MONETARY CONFERENCE
Some Interesting History Regarding
Banks and Banking
The West Led In the Discussions at
Indianapolis
The National Banking System Must Be
Liberalized and Enlarged-The Mic
THE MONETARY CONFERENCE
Some Interesting History Regarding
Banks and Banking
The West Led In the Discussions al
indianapolis
The National Banking System Must Be
Liberalized and Enlarged-The Mic
aragua Canal Bill-Senator
Perkins Effort

WASHINGTON, D. c., Jan. 1s.-The
latest scheme regarding the funding bill
involves the appointment Of a commits
sion to adjust the matter. Just why a
commission is necessary has not been
stated. 1t is said that the suggestion
emanates from those antagonistic to
funding, but the California delegation
believe otherwise. The railroad people
seem to have a hobby for commissions,
and they always desire the majority Sc
lected from civil life. This, l presume,
is to show their faith in ordinary man.
kind, and no one ascribes to them any
Interior motives. 1t is true that 1t Is
much easier to influence those from civil
life than those officially connected with
the government, but the funding people
say they want this matter settled in a
square manner, and as it will be OBJ
served from the reports of the debate
last week, they worked hard in an honest
endeavor to pass an infamous bill. Some
of the anti-funding people favor the
commission idea, but that is because
they have not thoroughly considered the
new scheme. 1t is undoubtedly of rail-
TOdu OIlSlli, dUu no QOuDl everyone w llo
was upon that side of the fight in the
late skirmish will be found supporting
this commission idea. The California
delegation q say the California delega-
tion because l do not count johnson as
being in the delegation-he being now
engaged in flocking by himself, are op-
posed and will fight from start to fin
ish. 1t Is doubtful whether the Harri-
son bill can be called up in the house
y. ntI he 4 x,rr
bill as dead for this year at least, while
others say that Reed will permit the
committee to bring the bill before the
house even as early as next week. Sena-
tor White is outspoken in his opposition
to the new measure. Said he:
Il am utterly opposed to the new
proposition, which ! observe is being con-
sidered by the house and senate commit
tees. l regard it as a railroad scheme.
and l am afraid that some of those who
are really anxious to bring about a
square result may be misled into its
seeming advocacy. The law as it at
present stands is adequate to meet the
requirements of the situation. When the
railroad people find that the government t
is in earnest and is proceeding to collect
its due far better propositions will be
made than any that have been hereto
fore considered. If the government will
ance of the contract as now made, every
cent due to the treasury will be paid
in. The present proposition really comes
from the railroad. This will no doubt
be denied and those engineering that
side of the fight know better than to
show their hands too freely. I do not
hesitate to say that if the matter is
turned over to a, commission, the rail-
road will get the best of it, do not re-
ar1 q nrON-iciDr with rafaranca n thn
reserved right of congress to regulate
fares and freights as of any material
value. Such provisions have been tried
in the various states of this union and no
legislature has been able to cope sue
cessfully with the problem and it is un-
reasonable to expect that congress will
be able to satisfactorily adjust fares and
freights from time to time. This addi-
tional legislative burden ought not to
be cast upon congress, and congress is
utterly incompetent to deal with it, The
acceptance Of the present proposition,
in my judgment, will be an abandonment
of the field to men who have been doing
up the government for years and years"
MONETARY CONFERENCE
The monetary conference held at In
dfanapolis last week has been classed as
quite an important affair The financial
question was thoroughly discussed from
a to z, and it is believed that a great
deal of good Will follow. This suggests
some history regarding banks and bank
ing which may be of interest at this
time. The country had some difficulty
in the readjustment made necessary by
the proper establishment of an indepen-
dent treasury by Jackson, which made
necessary the withdrawal of deposits
of the United States from the United
States bank, which had served as its
banking capital and the basis of its
credit In the endeavor to supply the
localities remote from financial centers
with an adequate circulating medium
we had a period of paper issues, not
based upon proper security. This was
the 'red deg" and wild cat" period
which figures In all discussions of our
financial history. Finally out OF this
condition issued the system of state
banks for the issue Of paper currency
system which, for the most part,
proved sound and reliable, with security
to the bill holder and safety to the de-
positor. Such bank paper, however, was
subject to discount, increasing in the
ratio Of distance from the point of its
emission. 1t is not unfair to say that
this suspicion of which banking cur
rency was the victim had it's origin in
the preceding experience of the country
with the wind cat" and red dog
money. The financial legislation of 1862
put an end to the state banking system
before it had become fully developed.
In it's short history, however, there are
no facts that may be quoted to it's dis
credit. The mist tory of the national bank
ing system reflects many msunder-
standings as to its nature. 1t was at
drst identified in the poular mind with
the United states bank that had been
overthroWn by Jackson, though it pos
sessed no features in common with that
system. In the beginning it was I'M
popular, tcO because of the high raj
Of interest paid upon the bonds which
were deposited as security for it's circu-
lation, so that the great advantages Of
currency Of uniform value all over the
country and an absolute security to the
bin holder and better protection than
any other prior system to the depositor.
We're secured by this high rate of interest
paid on the bonds, making the currency
costly, ard the Identification of the sys-
tenn of the United States bank. After
resumption of specie payments in 1879