Omaha daily bee., 1903-06-19
BANKERS TALK BUSINESS
Hon. Walter L Smith Tells Of Financial
Legislation in Last Congress.
LOCAL MEN ENTERTAIN THE VISITORS
Omcers Elected and Much of ImpOr-
tance IL Observation-Disclosures
From All over the Dis
trict IL Large.


trict IL Large.
The principal address before the meeting
OF group l OF the Iowa State Bankers asso-
citation, held yesterday at the Grand hotel,
was that by Congressman Walter 1. Smith,
who spoke on the subject, Financial Legis-
| lation Proposed and Enacted by the Fifty
seventh Congress-" After stating that
there was considerable more legislation pro-
posed than was enacted Congressman Smith
said In substance
The most important proposition embodied
/ In law was that establishing the gold
standard in the Philippines. There seemed
! TO be but little doubt but that something in
ness of the islands was being conducted
| upon a silver basis, the Mexican dollar
| being the chief actual medium Of exchange,
! and the tremendous fluctuations in the
/ price OF silver caused such arrangement In
| the revenues as to threaten the bankruptcy
| Of the Philippine government.
| There were two very different propositions
| for remedying this evil. The first and
| think the better, proposition was simply to
| extend the American monetary system to
the islands The other was to establish the
gold standard in the Philippines, but to
Frains OF standard gold, and to coin a sill
| yer peso Of l6 grains $40 fine, each silver
peso to pass as the equivalent of one-half
OF the American dollar, and imposing upon
the Philippine government the burden of
maintaining the parity of these silver coins
w9 Sofh the ESd S s Standard WAS
| in the Islands and at the same time the
people were given coin OF substantially
the same size and weight OF the Mexican
dollar and of substantially the same pur-
chasing power.
Three Important Bills.
The three most important bills proposed
during the last congress which failed were
the first Fowler bill the second Fowler
bill was far too sweeping in character. It
sought by a single measure TO remedy all
the ills, actual and supposed, IN the none nome
wise and some very unwise, and some of
those that were wise in the abstract were
not of a character to be sustained by pub
one of the greatest evils of our financial
system is that under the system of green
back redemption the government Keeps a
large stock OF gold on hand and when any
one>wishes to export gold he can obtain 1t
without cost for exchange. This is not true
in any other country. Everywhere else II
wishes to export gold ne tIniiv m1st sesR S IL
attended with trouble and expense OF colt
, lecting 1t and with the charge of small
} goes out of the country when the rate OF
| exchange on Europe is such as to justify II:
but viii not ocme back until the rate OF
| American exchange in Europe has gone
, above the rate OF European exchange here
which sent Il out. The fact that gold thus
leaves
when the conditions are exactly reversed
I is highly prejudicial 10 us. But there seems
| no way by which this can be avoideo sS
long as the government maintains gold
t reserve which can be Taided by all VINO ae-
: sire to export gold. The only way this din.
! the greenbacks and for this the people are
not prepared now, II they ever viii oe, ne n
first Fowler bill sought such an enc, . ou' AZ eo
rived from this It provided that the sllver
y dollar should be redeemed by the govern
! ment thus making the substantially SoOO,
4 600 .OCO of silver the equivalent Of green green
v backs, and so defeating any goou WIZ WIZ
E might have been obtained from the re'ire
Z nl1pt 1rba 81 second Fowler bin was much simpler
I and contained nothing but proposition CI IoI
. hanks are clamorous for the passage Of
r such BILL insisting that some S suSn - iot ~. !,
n Of emergency currency Is essenuat ,ss 10 'i6 nt
i relief of the financial sltuauoh III uiAes "
Z monetary depression. .s ,,,,tt
! ! / was at one time much impressed Wit Wit
! the desirability of elasticity In the cur
q rnncy and do not now dispute its adv.s
4 | ability although grave DOUBT Is tpVUMt ~,
upon this question by the renetS'on rin1t,, IL RI,
British currency system. except sucn as ~ y
| caused by the inflow and outgo OF eoiu, an k
under that system Great Britain has 10
,. aaSTlv loo years been conducting the clear
ins house OF the world. Conceding nov
= ever, the desrahiity OF elasueas t assst ~ cur
r rency could not under any proposes iesIo Io
iation be treated as a part OF nahk i ssoar ~
= serve and the chief difficulty IN receIl
% times with ca stern banks has not been =
= | ohtain suficient ioanable funds, out u
. maintain a sufficient reserve
a The business Outlook.
'e n T. He,nsheimer. president of the Mills
3 County National bank of Glenwood'
e, discussing THE Business outlook sald'
: We are having the greatest period o
}, sneculation the country has ever know
Y and our greatest danger nossn ns s,Int ~
:, source The many industrial ana stoc
u schemes backed and endorsed by some @
: our great banks and bankers, mas proouce e
= AT times extraordinary and high rates
- interest and with 1t a degree Of anxiety
re u wall all street, the greatest money center noI
has al different times during these year
OF prosperity appealed 70 all quarters 70
financial assistance and the last year ma =
! been no exception. The reasons given !
i the country az large was that the none
d was for temporary purposes .S. Grea, ana wes wa
;, mainly to be used 70 assist tne great "eS
N we All know that this is but the natura
- results OF extraordinary promouhs an an
ID bgslness thai, is always in vogue in tina
n CITY. and in the last few years TO an eS
ID tent Tbssa saat nethoas e % % OF business are wha
ir makes the business man ana panket shaS AN
1t his head and prepare FOR the the eviI bsr ga y
of To predict what the outlook for the n
n ture "a / am safe in saying that the pre-
A. ent beriod OF general prosperity win
TO scliowed bv a time OF revsrses.
We can draw a lesson from almost even
| thing. We can render assistance ana az
viate financial suffering In the future 2
recognizing that II is largely with N
n | bankers 20 assist in modifying condiuon
"A ! not loaning our depositors funds to a.
oN various promoting schemes that Will surel
n react and iniure values and securities. an
xe / We in the end be the greatest sunerer
a., This can be done by our continuing, g
GU . bankers 10 do business on business prlI
OF / ciples granting credits TO legitimate deR
ON ers and calling a halt on the promoters
D, all kinds OF schemes who make II bus
i ness 10 do great things on other people
lr. I money and their own cheek.
nj And last but not least, BY refusing
- loan our names TO these nlegiumate e'
e' terprises. BY following this course muc
on can be done TO counteract the reaction,
u- that in a short time il will only prove
slight bilious attack and II will not
necessary 10 call in all the financial do
tors, including the powers OF the goNerl
ment, TO bring the country back 10 l
In normal condition.
- Thomas II. Read, president OF the Fir
National bank Of Shenandoah in his a
dress on ''The Conduct OF Savings pepaT
ments by National Banks" gave II as
l opinion that savings department was
most necessary adjunct TO 3 national ban
G25 especially In those towns where there W
competition In that line.
soo Tl>s program was brought 20 a close wi
. a discussion OF practical banking que