The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-01-16
MR.. ALLIES TALKS
en- BANK CREDITS
DELIVERS ADDRESS IN NEW YORK
Assistant Secretary OF the Treasury
before the New York University
school of Commerce, Ac-
counts, and Finance.

NEW YORK. Jan. 16-SHlton z. Allies.
Third Assistant Secretary OF the Treasury,
made an address on The Evolution Of
Banking Credits" last evening before the
New York University School Of Commerce,
accounts and Finance, in the University
Bulldog, Washington Square He said in
part:
Credit is to commerce what the subtle
power OF electricity Is 10 transportation
and communication. It is the mysterious
something which gives life to trade. and
by its side the use Of actual money as a me
dunn Of exchange falls into a place Of rel
atiye insignidcance. II transactions were
required TO be carried on absolutely by
means Of money. not all the two Thousand
millions Of dollars now in circulation in
the United States would be sufficient 20
carry on the exchanges whicl take place
in the city OF New York alone in half a
week.
Ellis Island Ranking.
a striking example Of the first and
earliest function Of the banker nay be
witnessed any day at Ellis Island. The
immigrants before they leave the island
visit the money changer there and ex-
change their foreign coin and paper cur
rency Tor money Of the United States.
the money changer being allowed 20 l.,<e
reasonable charge 10 cover a fair profit
and the expense which wiz b. incurred in
returning the money he has received 10
the countries where e was coined or is
sued The entire hi Story o. banking and
us development. tOg Their with the evolu-
uon Of credit. lies be -Ween the duty which
the money changer al Ellis Island per
forms and the varied and complex opcr-
atons OF modern commercial bank. Of
which there are some threescore or more
in this great financial centre.
'StOrehousc of Crcdit.v
The bank in the ordinary course Of its
affairs becomes. as # were. a storehouse
Of credit. The first great banks Of mod
ern times, those Of Italy, France and
Germany, were more banks Of issue than
banks Of deposit. IN this country the first
trend OF banking development was in the
same direction Until 1890 the deposit and
! check system here was subordinate to the
] issue Of notes
The country is confronted BY condf-
ton that demands almost immediate ac-
ton Shall We recognize the fact that the
present bank note is defective and find
some substitute for il. or shall we depv
any necessity for bank notes and rely in
the future entirely upon the gold with
which the mines Of the world furnish 10
Secretary Cages Plan.
Among students Of the question the
belief is growing that the time is ripe
for the gradual return to the beg, lea
lures or the Old Suffolk banking system.
Those who most strongly oppose Score
TAI viz
Currency as secured in part by the as
sets Of banks. do so because Of the fear
that the plan does not provide sufficient
security for the note holder. but the Sec
rotary demonstrates that the guarantee
fund project would be entirely adequate.
and he says that. taking the history Of
the last thirty-siX years. a tax of one
eighth Of 1 per cent. as proposed. would
have sufiiced 90 pay all losses promptly.
and the unused surplus to the credit
Of the guarantee fund would have been
at the present time $27. 421 $50"