The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-09-16
MEET AND DISCUSS QUESTIONS
OF FINANCE
OMAHA MONETARY EXPERTS
Turn Their Attsntion to Bank Cur.
rency and an Irredeemable Paper
Circulating Medium
Associated Press Special Wire.

Of the Chamber OF Commerce To-Day the
sixth annual convention of the California
Bankers Association was convened. There
was an exceedingly large attendance OF
bankers from all parts of the State. Mayor
Phelan welcomed the financiers and in the
absence of President John j. Valentine.
Vice President j. M Elliott of Los Ange-
les responded.
Mayor Pheian dwelt upon the advantages
of San Francisco as convention city and
passed to the effects of the war with Spain
upon the financial future of the Pacific
Coast The Mayor argued from the stand
point that the United States will retain the
Philippines and the possibility Of the es-
Establishment of a great financial institution
in the Orient, He suggested that this might
be poin; for discussion by the convention
Chairman Elliott, in reply. stated that
many of the good intentions Of the bankers
were misconstrued, principally by politi-
clans, who looked upon any legislation sug-
gested by bankers as coming from body
bent upon personal qualification and for
personal ends.
President Valentine, in carefully pre-
pared treatise, declared that:
THE monetary system Of the United
States has long been a reproach, not TO
say scandal, to both the intelligence and
business honesty OF the country. For years
past it has staggered under no less than
ten different forms Of money, with variable
functions, including a heterogeneous mass
of old wartime devices, adopted as tempo
rary eXpedients TO meet extraordinary
emergencies, all of which appear to have
become amalgamated, and by prescription
and public apathy crystallized into an ag-
gregaton Of inefficient civic instrumental
ties wholly unworthy of the name of a
monetary system and wholly at variance
with every principle of monetary science,
as we'll as with sound financial policy"
In conclusion. the president said tina, the
association and all similar institutions
should prepare to meet the energies Of the
free silver organizations In the coming
camgaign.
Secretary Wech presented report
showing that there are So national banks.
ia other commercial banks, SO savings
banks and 10 private banks in California at
this date. and of these 81 national banks,
IS state commercial banks and 7 private
banks are members of the association.
James A. Thompson, chairman of the
executive committee, said that the coming
legislature would be asked TO change the
banking laws of this state to agree with the
laws Of other states, thus making univer-
sal banking system.
Frank Miller, president of the First Ma
tional bank of D. o. Mill, delivered an adj
dress up Currency Reform and Reorgan-
ization Of the National Baking System"
f. G. Newands of the house committee
on banking and currency of the late con-
gress. spoke on 1.-The Monetary System of
the Country
Hugh Craig, president Of the chamber Of
commerce, took an opposite position to that
of Mr.. Newlands by advoca ling the gold
standard. Mr. Craig was supported in his
arguments by Mr.. Albert Of the First Ma
tional bank of Salem. Or Several others
participated in the discussion.
Omaha Convention
OMAHA, Sep. 15.-The third and last
day of the National Currency Convention
began with a paper in support of an un-
limited Issue of irredeemable currency by
the government by General A. j. Warnel
president Of the American Bimetalc
Union. The mi6dle-of-the-road fiatist edi-
tors Of the Reform Press Association were
so anxious TO be heard, regardless Of the
arranged program. that It was with diff
Guilty that Congressman Charles S. Hart
man of Montana. who presided, could keep
them in order.
General Warner said the debate would be
divided into
First-The advocacy OF bank currency.
Second-A plea for a governmental cur
rency TO circulate concurrently with the
metals.
Third-An affirmation OF an irredeem Bile
government paper currency or absolute
fiatism.
AS to the defense Of falling prices, made
by the gold standard advocates he said
he concurred in their opinions except as
TO farm products, for which the labor cost
had decreased, and with the further uual-
flcations that there had been no reduction
in The fixed charges, such as .ransporta lion
rates, debts and taxes.
A reply was made 20 him by CONGRESSMAN
C. N. Fowler Of New Jersey, who SUD-
ported bank currency.
Mr.. Fowler said the only logical posi-
ton the silvertes could take was that OF
General Warner. tina; Il they could leg!s-
late value INFO silver they could legisla e
value into paper and make 1. redeem itself.
W. w. Clay OF Chicago said money is
money by virtue Of the law behind it. He
IS opposed to the coinage of gold, silver or
paper on private account.
John P. Irish of San Francisco defended
The gold.etandard IN a few words. Chairman
Towne came back at the gold mems con-
.ention that value cannot be leg.s,ated into
q substance by saving Legislation can affeo I
value. The only value money has IS its ex-
change value.
A paper by Vim. c. Cornwall Of Buffalo,
n. Y, on deposits, was read by f. V.
Sma!ley, secretary of the National Sound
Money league.
Two of the m.ddie-of-the-roade editors Of
the Reform Press association, N. NJ Mot
singer of Indiana, and A. Reed of Iowa
managed TO be heard on their theories Of
absolute fiatsm. Reed created scene by
charging the gold standard advocates with
being paid hirel.ngs Of the bankers and the
money power.
This evening A. w. Wright of Chicago
elaborated on plan for a free banking sys-
tenn without government supervision; Prof.
X. Allen Smith Of The Washington state
university and Judge Sheldon Of Connecti-
cut contended for he cumulative Theory
as regula;ive Of prices and Congressman
De Almond Of Miss ouri pictured grues ONE
future with only five per cent gold reserve
to redeem an immense volume Of bark pa
per, under the present system Of general
,an