Omaha daily bee., 1899-02-14

TO again present them for redemption and
thus was created what was known as the
endless chain" This defect In the system
was one q the principal subjects cf discus
sion In the campaign OF 1896 aud the success
full party pledged Esolf to maintain tho
soundnCes OF our cur snCy and ,he safety OF
/ the gold Standard. which this defect had so
recently endangered
i Recognizing the duty OF action incumbent
upon him and his party the president OF the
United States in his frst annual message to
congress made The following recommends
tion: THAT when any of the United states
notes are presented for redemption in gold
. and ATE redeemed in gold such notes shall
! be kept and set apart and only paid out In
exchange for gold. This is an obvious duty"
! In his last annual message TO congress he
! repeats the recommendation iu the following
words; In my judgment the present con
ditiCn of the treasury amply jus.ncs the
! immediate enactment of the legislation rec
ommendcd one year ago under which por-
ticn of the geld holdings should be placed
in a trust fund from which Eretubacks
should be redeemed upon presentation, but
when once redeemed should not thereafter f,
/ be paid out except for gold
At the time the first recommendation of
! the president was made other more radical |
plans involving complex changes in our !
whCle monetary and banking systems were |
earnestly pressed upon the attention OF the !
public by men whose abilities and sincerity
are alike unquestioned, None Of these plans !
, then SO prominent stood the test of maturcd |
discussion and they have boCn abandoned by
their former supporters for still another set |
of plans which involve, in a general way, the
same principles but which differ so radically
among themselves In fundamental particu.
lars that common agreement upon any one
of them even by those who believe in the
principles underlying them, seems impo5si-
BILE.
Injustice 10 DcpOsitors.
| These latcr plans provide in effect for the
assumption by the national banks of the
burden of the gold redemption of outstand
| ing governmental currency obligations in re-
turn for the privilege of issuing their own
notes to fill the vacuum caused by the even
tual retirement of these currency obliga-
lions. These banknOtes are to depend fol
their chief security upon a fist lien upou
the commercial assets of the issuing banks,
and are not to be protected by trust de-
pusit of government bonds security as
under the present system. | maintain that
this purpose prefe. ence of the noeholder
over the depositor differing SO radically in
its /. tactical effects from the qualified pref
e.ence provided by the present banknCte
system, would be unnecessarily unjust TO the
deposttCr class and most injurious to the
general business community.
AZ a fundamental principle of inherent
Justice the rights of a noteholder and de
pUsItOr against the common assets of the
bank, to which their mCney has alike been
contributed, should be equally sacred II
grounds of public policy and the common
good justify the infraction of this principle,
which is recognized in all of the older bank
currency systems OF the world the public
necessity must be real and unquestioned. |
Such public necessity existed when our
present system of national banknotes was
inaugurated and a preference was provided |
for which, however, is not at all similar to
the preference proposed by these plans. No |
argument is sound, though 1t may be con- |
fusing, which is based upon the proposition |
the present preference of the noteholder |
upon the United States bonds deposited In |
trust from the first, and then upon the as |
sets of the bank only in case of deficiency, |
is similar in practical effect to the unquali- |
fed and general lien given the notehClder |
over the depositor by these proposed plans.
Experience shows that loss is incident |
to the investment of the funds of some banks
in commercial assets, which, under the op-
Grafton of the law of average results in a
certain percentage of insolvency among |
banks. The trainers of the present law pro-
vided in effect that the national banknotes
issued under the present system should nc;
be invested in commercial assets, but
should be invested in government bonds
upon which there could be no appreciable
loss.
Let us build up the foundation of our
present monetary system by the enactment
into law of the presidents recommendation
rather than tear 1t down by complex and
radical legislation which would be in the
highest degree experimental This country
is emerging from the greatest indus
trial depression through which it has even
passed. The foundation of prosperity is con-
ndenCe. BullQed upon the commence or man |
in his fellow men and upon the confidence
of the community in the stability and integ
rity of its medium of exchange are the cred
its of the country which are so intimately
with that activity OF profitable en-
changes which characterize national pros
perty.
Currency Must Not BE ImperiIcd.
We do not want confidence destroyed We
do not want radical or revolutionary expert
ments with the currency. Nothing would
more unfavorably affect the credits OF The
country now in healthy state than radical |
legislation. We must make reforms
in our currency, but those reforms need not
and must not involve the risk of commercial
disaster. The recommendation of the presi-
dent when enacted into law does not involve
a change in the currency now IN circulation.
in which the people have full confidence but
it provides for its safety thu if a panic
does come again it will not be because OF
mistrust in government currency, nor can
such a panic materially injure the credit
Of that currency.
We VII make no mistake upon this great
question in following the president, for 40
one of our public men has better judged or
better followed the enlightened sentiment of
the nation. As a wise and conservative
statesman he has always been faithful to the
interests of the PEOPLE and for that reason
he has their confidence Like Lincoln, lie
follows the thoughts and leads the voice OF
he people, He bore the tremendous physi-
2al and moral burden of commander-in-
'hlet OF the army ana navy OF the tnlled | =
States in foreign war simply, quietly and
:
He Turns again to the problems of
peace and we find that the glory of martial
and the applause of the world
nave not changed the cool, conservative and
yet inexorable methods of his thoughts and
actions in public matters. Let us take The {
step in currency reform which he recon-
nends and thus redeem the obligations TO
he people which were assumed in the cleo
ion of 1896.
Hon. Stewart L. Woodford of New York,
* minister to Spain, spoke about Greater
America"
Addresses were also made by several local
speakers
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