The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-16
MONEY AND BANKING
TOPICS DISCUSSED AT THE NATION
AL CURRENCY CONVENTION.
Addresses by Gen. A. j. warner. j. p.
Irish, w. c. Cornwall and Others
Questions for McCIeary.

OMAHA. Neb., Sept. 15.-The third and
last day of the national currency conven-
ton began with a paper in support of an
unlimited issue of irredeemable currency by
the government by Gen. A. j. Warner
president of the American Bimetallic
Union. Charles S. Hartman. of Montana,
presided. General Warner said that the de-
bate to-day would be divided into, first, the
advocacy of bank currency; second. a plea
for a governmental currency to circulate
concurrently with the metals, and, third,
an affirmation of an irredeemabie govern
ment paper currency, or absolute tiatism.
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 costs
had not decreased, and with the further
qualification that there had been no reduc-
ton in the fixed charges, such as transpor-
tation rates, debts and taxes.
A reply was made by Congressman Fow-
Ter, of New Jersey, who supported bank
currency. Mr. Fowler said the only logical
position the silveriteS could take was that
of General Warner; that if they could leg
slate values into silver, they could legis-
late value into paper and make it redeem
able
ural College, led off this afternoon, arguing
for public control Of money He charged
the banks with securing legislation inimical
to the interests of the people and by man.
ipulations having produced the panics of
1873 and 1898. He cited the postotfice an
instance of the operation of public control
of public utility. and said money. the great
est Of all public utilities, should also be un-
der public control l.. H. Weller, of Iowa,
followed, saying he is proud of his position
as fiatist.
1t was intended that Congressman Nc
Cleary, of Minnesota, should explain the
provisions of his currency bill, introduced
at the last session of Congress, but the
paper-money champions fired questions at
MIN fast that his entire forty-five min
uteS was taken up in answering them and
his paper went over 10 the evening session.
The fire of questions brought out some
views on coinage. With reference to silver
he said it had never been demonetiZed in
the proper meaning of the word. What had
taken place was precisely a change in pol
icy to coinage. 1t was simply question
or coming on public account or private ac-
count.
A lengthy exposition of the process and
history of coinage followed. George Fred
Williams presented a long series of ques-
tions to which Mr.. McCleary attempted to
reply, but was cut OF by the clamor of the
fattStS to be heard.
w. w. Clay. of Chicago, said money is
not money by virtue OF lne law Denlnu IL.
He is opposed to the coinage of gold, silver
or paper on private accounts.
John p Irish of California, defended the
gold standard in a few words. Chairman
Towne came back at the gold mems con-
tention that value cannot be legisaJed into
substance by saying legislation can affect
value. The only Value money has is its
exchange value.
A paper by William c. Cornwall. of Buffa-
10, N. Y, on deposit currency was read by
l.. V. Smalley, secretary of the National
Sound Money League, showing That deposit
currency consisting of bank notes had in
creased from $1,1VO,O00 in 1879 to 49, 300, 900.
According to Mr.. Cornwall Il bank note Is
title to actual property held in the bank,
but government legal tender is simply a
forced loan: Mr.. Smalley challenged the
quantitive theory.
Two of the middle-of-the-road editors of
the Reform Press Association, N. IL. Mot
singer, of Indiana, and Mr.. Reed, of Iowa,
managed to be heard on their theories of
absolute fatism. Reed created a scene by
charging the gold-standard advocates with
being paid hirelings of the bankers and the
money power.
This evening A. w. Wright, of Chicago,
elaborated upon a plan for free banking
system without government supervision;
Prof. K. Allen Smith, OF the Washington
State University, and Judge Sheldon, of
Connecticut, contended for the quanJitive
theory as regulative of prices, and Congress
man Dearmond, of Missouri, pictured
grewsome future with only a 5-per-cent.
of bank paper under the present sytem in
case of money panic. Time was allowed
Congressman McCieary to give his reasons
for an IDEAL banking system.
The closing argument for hatlsm was
made by General Warner. He said the other
side had practically admitted the quantitive
theory of money by contending for larger
bank issue.