Evening star., 1897-01-12
THE NATIONS MONEY.
Commercial Bodies Represented in
Convention at Indianapolis.
DISCUSSING THE CURRENCY QUESTION
Ex-Governor Stanard on Retiring
United States Notes.
BANKING LAW

INDIANAPOLIS, Ind, January 12.-The
monetary convention which began in Tom
linson Hall this afternoon had its inception
In this city November 1e last. On that
date the governing committee Of the local
board of trade was called together by the
boards president, J. c. Adams. At this
meeting President Adams stated that it
was the wish of many members of the
board Of trade that steps be taken with
view to holding a conference Of the boards
Of trade Of the larger cities Of the central
west, the object of which should be the
consideration Of the financial situation and
a national convention of boards of trade.
The purpose Of this convention should be
the consideration Of general currency
plan and a possible recommendation to
Congress looking toward national financial
legislation. H. H. Hanna, at the request of
a number Of business men. presented the
question Of currency reform. Resolutions
were passed inviting the boards Of trade of
Chicago Cincinnati. st. Louis. Louisville,
Columbus. Cleveland, Toledo, Kansas City,
Detroit. Milwaukee, Minneapolis, st. Paul
and Des Moines to be represented by three
delegates each at preliminary conference
in this city, December !. 1885,
The resolutions declared that at this pre-
liminary conference the advisability of
calling a larger conference of delegates
from the commercial organizations of the
cities of the United States and the pro-
priety of creating non-partisan commits
sion. whose duty should be the formulat
ing of a plan for the improvement of
currency system. would be considered
At the conference, held December 1, fif-
teen cities were represented. Mr.. H. H.
Hanna, as temporary chairman, addressed
the meeting, as did E. o. Stanard of St.
Louis, who was chosen permanent chair
man. Among other speakers was ex-At-
torney General w. H. H. Miller. A resolu-
tion was adopted inviting all commercial
bodies in cities over 5000 inhabitants to
send delegates to a national convention to
be held in this city January II.
Tomlinson Hall, the scene OF so many i'm
portant conventions during the past year,
has been modestly decorated, though the
idea of convenience has been the first pur-
pose in the minds of the local committee.
Delegates continued to arrive during the
morning, and all registered at the commit
tee headquarters at the Dension Hotel.
Chairman Stnnnrd's Address.
Ex-Goy. E. o. Stanard of Missouri, the
temporary chairman Of the convention, said
IN the course of his remarks:
The present financial methods of the
government are largely those adopted dur
ing the war when there were great emer-
gencies. 1 believe there is very strong
and constantly increasing conviction among
our people that some method should be
adopted for the retirement Of the United
should not much longer be tolerated as
circulating medium. They have been a
hlndrance to the prosperity of our govern
ment for many years. They are a constant
menace to our treasury reserve and to the
credit of the government, and when en-
croachments are made upon these reserves,
commerce stands in fear and trembling.
There seems to be well-defined conviction
" tpn vr1nn fIra rf<
of the past that there should be no notes
in circulation which should not be retired
when their Office has been fulfilled. Wheth-
er these notes should be retired at once or
gradually l am not disposed TO say; but of
the necessity Of their retirement l think
there can be no question. 1 would retire
them by the sale Of long government bonds
at a low rate OF interest if there can be no
from cirDulation:
While l am mentioning some of the de-
fectS, as l believe, OF Cur monetary sys-
tenn, which come to my mind, would say
banking law should not be SO amended as
to allow the national banks to issue notes
up to the plr value Of the bonds which
they hold as basis for their issue, instead
of issuing, as they are now compelled to do
OILY 80 per cent of the par value of the
bonds that cost them perhaps 11S to 40.
This would help in giving us larger vol
ume of circulation and be an inducement
under the new law. Many of the banks,
as the law now stands. do not issue all the
notes they are authorized to do because
much of the time 1t is not profitable for
them to invest in bonds at 12O when they
cannot avail themselves of an issue of more
than 30 per cent of the par value of the
bonds they purchase. Then there Is a tax
of l per cent on the issue Of the national
bank circulation. and see no necessity for
SO large tax as this, as 1T must ultimately
be paid by the borrower. l believe that the
tax should be reduced to 4 of 1 per cent.
There are many advantages connected
with the national banking system of the
country. and this system, l believe, might,
with great benefit to- all interested, be ex-
tended by allowing, under proper safe
guards. the establishment of branch banks
in smaller cities. with largely reduced mini
mum Of capital. believe there is no in
stance on record where a loss has come to
holders of national bank notes.
There are many suggestions of reform
one Is to withdraw all paper money under
the denomination of $1O thereby forcing a
larger volume of silver and gold to circu-
late IN the hands OF the people. and I be-
lieve this Is well worthy Of favorable con-
sideration.
Il do not believe that any criticism can.
with reason or justice, stand against COM
merctal or business organizations for TAX
ing an active interest and making recon-
mendations to Congress in matters of so
great concern as these which call us to-
gether.
II am sure the banker, merchant profes-
s.onal man, manufacturer, farmer miner
artisan, mechanic and laborer all have a
community of interest in the cause we are
here to promote. In the language of Rem
jamin Franklin, we must all hang TO-
gether or hang separate The country can
not permanently prosper II any of the es-
sential interests are neglected or sacrificed
All legislation should be for the greatest
good Of the greatest number"
Views of Delegates.
II the executive committee is asked to
name the permanent chairman, it will
suggest the name of c. Stuart Patterson of
Philadelphia. Mr.. Patterson was expected
to arrive before the convention hour, and It
Is understood that he is willing to assume
the duties OF permanent chairman.
Speeches may be limited to ten minutes.
The commission plan, which has been
locked upon with favor by many of the
delegates who have expressed themselves.
does not meet the approval of several who
are expected to take q prominent part In
the proceedings. Among these latter is
Representative J. H. Walker of Massa-
chusefts. chairman of the House commit
tee on banking. and currehcy' Mr.. Walker
favors law divorcing the Eoyernn,enf
completely from having anything to IA
with curr0ncy Pedeunftvn AZ auv.H.e~..s -