The evening times., 1899-09-07
BANKERS, IN CONVENTION
Third Days Session Of the Ameri-
can Association in Cleveland.
Walker Hill, of the Exchange Bank
of st. Louis, Reelected President.
William c. CornweII, of Buffalo,
Delivers an Address Upon the Ques-
tiOn of Reform of the Currency.

CLEVELAND. Ohio. Sept. 7.rAt the
third and last days session of the an
nual convention of the American Bankers
Association today Walker Hill, president
of the American Exchange Bank OF ST.
Louis. was reelected president in ac-
cordance with the recommendation OF the
nominating committee made yesterday.
feature of the proceedings today was
the address by Mr.. William C. Cornwell,
president OF the City Bank Of Buffalo,
which was listened to with great attention
by the members of the convention. Mr..
Cornwell said in part:
President Mckinley has been blamed
for inaction on the sound money question,
but he has steadily advocated in his two
messages and in public speech the estab-
lishment of the gold standard by law. and
the impounding of the greenbacks, SO that
they cannot drain the Treasury gold. If
these two things are done the promises or
the Republican platform will have been
carried out.
THE President can only recommend and
approve legislation, the rest depends upoE
Congress. The measures advocated by the
President are also the first steos absolutely
necessary 10 currency reform The basic
weakness of our system is doubt about the
stability of the standard, and the power
OF the greenback to deplete the gold re-
serve. But our whole currency system Is
besides singularly unfit.
The greenbacks are fixed. immoVa-
BILE mass. They congregate in the large
money centres where trade is dull in sum-
mer. They become there tied up in specu-
lative operations on the street, SO that
when really needed for legitimate busi-
ness later on, they are unavailable. Green
backs are essentially Wall Street money.
! We have also the national bank notes
| bond secured-and sometimes spoken of as
| the best currency the world has ever
! known, but in fact quite the opposite.
Bond secured currency contracts, when
needed in business, and expands when not
needed. This Is because it does not pay
/ to issue it when interest rates are high
! Gust when money is needed) and il does
/ pay to issue it when rates are low land
then currency is not needed. To illustrate,
/ since the first of January when all busi
ness has been expanding, the circulation of
national banks had actually decreased up 10
! the middle of August.
"Cerdit currency issued by banks, il
made absolutely safe, as il can be by guar
anty fund of all other banks, is entirely
/ different in character. 1t can be manu-
factured at the moment when more money
is needed, by reason of increase in the bIsi-
ness of a special district or of the whole
country, and the very day that need begins
TO lessen, the notes begin to disappear b.
natural law. That is, they begin to be de-
posted in banks instead of passing from
hand to hand, and the banks send them
home to get the cash for them just as il
they were checks. Under a proper system
they cannot live one minute longer than
they are needed. any more than check
can.
Trade, by means of the check drawn
against deposits in bank has developed
system of currency of its own by which
90 per cent of all business is done safely
and smoothly. The check is the rich man!
currency. Ii can only be used in cite:
and larger places. The bank note is tht
natural currency of the farmer, the lumpeI
man, the miner. and the cotton worker.
was squeezed out of existence by the war
and the great army of workers have beer
cruelty deprived of it for thirty years afte
the war emergency had passed.
There is no question that system o
credit bank-note currency can be devised
for this country that will be absolutel,
safe, and in its very nature il will respont
/ to and build up trade instead of pullin,
il back and forth and down as our presen
system does.
Three main things need be done to per
feet our currency:
First, to establish the gold standard b.
law.
Second, to cancel or impound the green
backs.
Third. to retire bond-secured banl
notes and substitute properly safe guarded
bank notes against assets.
THE voters have not yet been educate'
up to the third requirement. They have a
to the first two. That is what the victor,
at the pools in 1896 meant. If these tw'
provisions are made law, the Republican
sound money pledges will have been re
deemed. We must look to our busines
men. through their splendid Indianapoli
organization. to insist on this action. W
will have in December the first Congress
since 1896 which is Republican in bot
+ branches with majorities necessary t
sound money legislation. The party nov
has no decent reason for delay in carrying
out its pledges. 1t could not have acte
, before, but if it fails now it will receiv
. and merit the condemnation Of the voter
that saved it in 1896, and it will be in gray
peril in 1900.''