The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1902-11-14
MAKE MONEY
/. MORE ELASTIC
Bankers in Convention Pass Resolu-
tons favoing a More Flexible
Monetary System.


New Orleans, Nov. 13.-At the after
noon session Of the American Bank
erg association yesterday J. J.. sulli--
van, of Cleveland, offered the follow
ing resolution which was adopted
without objection:
Whereas, Experience las demon
strated the inadeauacy Of our present
currency system, and, believing that
the best interests. OF the country de-
mand a system, flexible as, weIl as
stable, be 1t
Resolved, That the American Bank
ers' association records its unqualified
approval of the enactment Of a law
imparting greater degree OF elastlcl-
ty to our currency system, making II
responsive to the demands of the bus
mess interests of the country.
Resolved, That We favor the ap-
pointment by the president of this as
sociation of a committee Of seven
members Of the association, selected
with reference to their ability and
high character as bankers and their
experience in monetary affairs, and
country, for the purpose Of carefully
considering the entire subject, and re-
port to the next meeting Of this as
ISOLATION"
Congressman G. A. Pugsley, Of New
York. delivered an address on IAN
Emergency Currency" He said in
part: -.
"It behooves the bankers of this
country and the legislative bodies of
the country to prepare such an emer-
gency currency as will take the place
Of clearing house certificates, and re-
lieve the distress which attends not
only a great panic, but that results
from a demand for additional circula-
tion in the moving of the crops and
the undue contraction OF the cur
rency resulting from the accumula-
tions from customs deposited In the
United States treasury, which occur
almost periodically each year.
Various plans have been evolved
for the reform of the monetary sys-
tenn, and a number of bills have been
introduced in congress during recent
years for the purpose of giving great.
er elasticity to the currency.
II do not believe the American peo-
pie are yet ready for an asset cur
rency, pure and simple, or for such
radical departure In our currency sys-
tenn as Is provided for in the Fow
Ter bill. / believe, however, that ar
emergency currency engrafted upor
our present system might prove bene
fetal, and would also test the work
ing Of an asset currency, to which WI
may have to come when the govern
ment bonds are no longer available a!
security. Such an emergency circula
ton, I believe, might be had II th'
present law should be amended SO, al
to permit all national banks holdin,
government bonds as security for cir
culation to issue 10 per cent addition
al currency on the amount of bond
deposited with the secretary OF tn
treasury, the same TO be taxed at tn
rate OF 8 per cent per annum. and ais
providing that all banks having a sur
plus fund equal to 20 per cent Of thei
capital should be authorized to issu
10 per cent of asset currency, to he sc
cured by approved bonds or by bill
receivable specifically set apart TO
that purpose, as in the bank o
France"
A resolution by John T. Hamilton
of Illinois, providing for the creation
of a committee of nine to investigat
the currency question and evolve
solution, was presented from the ex
ecutive council, but referred back t
It by the convention.
The call of states thea proceeded
and fve-minute speeches were mad
presenting the resources of each STATE
Alabama, Arkansas, California, Con
neticut, Florida, and Georgia wer
heard, and then the convention ad
jOurned for the day
-s- All the important business has bee
concluded except the election OF of
GERS The entire convention was er
tertained at theater party In tn
evening.