The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-21

redeem in gold the present paper money of the
country, rests upon the ability Of the govern
ment, as evidenced by the amount of gold it
holds available for that purpose The amount
OF available gold in sight is the thipg-not
the undoubted ultimate ability of the United
States to pay. Until the actual visible gold
reserve was established United States notes
were at discount. .-.
The amount Of the gold reserve is fixed by
law. The amount is known quantity and
although a small quantity compared with
the total obligations yet everybody knows
1t is larger quantity in one available pile
than can ever be demanded at one time, or
IN period Of time too short in which to re-
plenlsh it by the sale of bonds. And the
amount Of available gold actually held by the
government is made public every day.
There is but one pile Of gold for the note
holders to keep track of, and who does not
remember with What anxiety everybody
watched the daily treasury statement of the
decreasing available gold during the panic of
1893.
Scatter the huge pile of gold now held in the
treasury among more than 5000 banks, how
could the fact Of their gold reserve be made
known to all the noteholders? It is possible
to watch one pile of gold but evidently i'm
possible to watch more than 5000 insignificant
piles scattered oevr the vast territory of the
United States. AS a matter of fact, these
banks could not by any possibility hold any
gold specially available for the payment of
notes, because all the gold there is In the
country or which it would be possible to
obtain would scarcely equal the legal require
ments against deposits.
Assets Currency Local. 49,.
Another objection to an assets currency
Mr. Stlckney held, is that it is, always
mas peen and always will be- a purely
local currency. In the immediate vicin-
age of the issuing bank it's notes will be
circulated, but not elsewhere, because
| outside of the local area they will be SUB
Ject TO discount. In concluding his argu-
1nents against assets currency Mr.. Stick
ney aftlrmed that all the commercial ma
tions of the world had experimental with
assets currency, and that all the devices
now advanced to make it safe had been
tried over and over again and found want
Ing. Mr.. Stickney reiterated his belief
IN paper money issued by one bank for
the whole country, saying on this point:
1t is my opinion that there should be but
| one class of paper money in circulation which
| would require all the paper money to be
| issued by one bank, because If issued by
several banks, there is necessarily as many
classes as there are banks. But if issued by
| several banks, it should be at a cost in the
nature OF specific security, which shall de-
stroy competition between the banks and the
issuing bank should at all times have the
known undoubted ability to redeem it in gold,
evidenced by an ample visible supply Of gold,
either IN its own possession, or, BETTER in the
possession of a single redemption agency.
| These are conditions which are impossible.
for several thousand independent banks to
comply with.
Prof. McVey Takes Other Side.
Professor McVey began his address by
abruptly declaring that he was believer
in an asset currency. His argument was
in the main, that the power to issue circu-
latlng notes was necessary if country
banks were to discharge their complete
function in the business of their neigh
borhoods. He thought that an assets
currency would be Of little value in the
city and of but little interest to city
banks. In Pa, the city business is done
through book credits. Checks replace ac-
tual money In the county the money is
needed. The farmers require assistance
between the time of seeding and the sale
of crop. 1t should be large part Of
the function of a country bank to assist
the farmer and give him the equivalent
Of the business advantage the city business
man gets through book credits. Bust
ness in the country would be facilitated
and stimulated, and that condition would,
Of course, naturally help the cities.
Bishop S. c. Edsall delivered a short
talk of diverting nature. Orrin N. Green
president of the Minneapolis Bank Clerks
association presided and acted as toast
master. The honorary members of the
association and invited guests were:
F. l.. NIcVey, George C. Power, St. Paul:
F. M. Prince, A Lehmicher, St. Paul; W. L.
Prince, st. Paul; H. G. Clarke, S. G. Palmer
| L. C. Brown, E. Pennington, G. H. Prince,
j. F. r.. Foss, j. Donaldson, S. A. Harris,
F. L. Kenaston. H. H. Thayer F. B. Sem
ple DIR. w. w. Folwell R. P Woodworth
y. Mackchercher. E. S. Woodwork, j. Kauf-
mann, A. NJ Robertson, A. l.. Searle. A. s.
Brooks, II. E. Gipson, w. S. Harris, F. H.
/ Welcome, F. W. Lyman, E. G. Warner, G.
j. Martin, A. A. Crane. F. c. Van Dusen, s.
H. Bowman, George HUM, Guy C. Lands,
+. A. Gross, H. C. Akeleyi and J. H. Queal.
! E. j. Carpenter Louis K. Hull, Perry fIar-
rison, Fl. NJ. Carpenter James Quirk, T. F.
Hurley, G. T. Jaffray, E. P Weller, W. A.
burst, E. A. Merrill, tR. H. Chute, Joseph
Chapman, Jr., F. j. Whitney. St Paul. W.
B. Gerry, st. Paul;gC.7 F. Deaver w. B.
Beach, ST Paul; W. Williams, G. D. Rogers
William Hooker G. R. Clark, H. S. Abbott
w. N Carroll, F. e. Holton, ]. E. Carpenter,
l.. S. Gillette George w. Porter, E. W.
Decker, L. ID. Baird, Austin; D. S. Culver,
West Superior; S. L. Prentiss, l.. R. Brooks
j. s. Bell w. A. Ramsey, j. r. Wyman, T.
B. Janney, W. H. Dunwoody, w. D. Wash
burn, John w. Thomas T. B. Walker, Fred
Dean, J. l.. Mitchell, Eugene NJ Stevens, 9.
e. Naegele, C. A. Magnuson, j. Birkhois,
George Loudon, T. NJ. Knappen G. D. shep-
and E. L. Mattson.