The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-10
BEVERIDGE ON
FINANCIAL LAW
He Tells Indiana Bankers That No
Radical Legislation Need Be
Al. Expected.
Declares Stability in Financial Leg
=, islation More Valuable Than
Changes Tho for Better.
Representative Fowler Outlines the
Provisions of a Bill He Ex-
poets to Introduce.

South Bend, Ind, Sept. 10.-The sew
enth annual convention Of Indiana bank
ers was addressed to-day by United States
Senator Beveridge. Senator Beveridge
has but recently returned from a visit
with the president at Oyster Bay, and
his positive assertions with regard to the
action Of the coming session Of congress-,
FOR that reason, were given all the more
weight.
Senator Beveridge said:
Senator BeverIdge's Speech.
1.-THE coming session Of congress will not
enact any radical or sweeping financial
legislation. Except in great emergencies,
moderation Is the word in all financial
legislation. The stability of financial
legislation, even tho imperfect, is more
desirable than sudden and comprehensive |
changes even tho those changes are to-
ward greater perfection.
Some moderate financial legislation, |
which will relieve the periodically recur |
ring money stringenCy in money centers, Is |
probably desired and may be enacted. |
But such legislation, If enacted, will be |
simple in it's nature, and will not disturb |
or alarm the business interests Of the |
country. No legislation is possible at the
coming session of congress which will
radically affect our entire currency system
and cause the business world to pause in
our present prosperity, until IL IS seen
how such legislation Is going to work.
Must Maintain Our Credit.
The maintenance Of credit Is the only
great financial question and always must
be. Credit is another name for confidence.
Confidence Is preserved by reasonably
permanent adjustment Of business to any
given lines Of financial and commercial
policy more than by all other things put
together.
hat
be gradual changes in all Of our laws,
as those laws here and there become out
OF date. But do mean that it Is better
for business to steadily adhere to some
settled line Of policy than to suddenly
and radically change it. Our whole finan-
cial and industrial legislation should be
steady and not spasmodic.
within banking circles themselves all
contentious should cease. There Is no
natural antagonism between eastern and
western bankers. Naturally their inter-
ests are the same. Bankers east and
west are the financial servants Of a single
people under a single flag. II western
bankers when they do not need their
money make loans to the customers Of New
York bankers, for example. aus Is uni
versally done, and when they need their
money again take 1t away and require the
entire financial necessities Of business In
Z the east to be cared for by eastern bank
ers whose territory they have invaded
measure which will relieve the local east
ern stringency which the western bankers
themselves have caused.
Eastern and Western Banks.
On the contrary, the eastern bankers
should not invade the territory Of western
bankers when eastern money Is plenty
and thus invite reprisals in their own
fields by the western bankers. There
should be mutual consideration, each Sec
ton taking care of the financial necessi-
ties Of Its own people as long as 1t has the
money to do so, and relieving the necessi-
ties Of another section only whenever they
are not able to take care Of themselves.
There never was period when the tide
of prosperity has risen so high as now;
and it's highest point Is not yet reached.
But upon the bankers Of the country more
than upon any one set Of business men de-
ponds the continuance Of this fortunate
condition. If, without reason, the bank
ers indulge in vague apprehensions they
will themselves bring about the very thing
they fear. If the bankers begin to eXer-
else cowardice instead of prudence; If
without any reason except timidity they
begin to contract their loans and reduce
their credits, then confidence, upon which
all business rests and Of which the bank
ers themselves are the benefciaries, will
be impaired.
But this will not occur. The bankers
of the republic are too intelligent, too
brave, too patriotic
Representative c.. N. Fowler. who is in
attendance upon the meeting. explains the
special features of a bill he will Introduce
in congress as follows:
Provisions Of Fowler Bill.
Retirement of the greenback or rather
its "impoundment" out of harms way
thru a stipulation that the banks be
compelled to hold 10 per cent Of their
cash reserve in United States notes AS
the national banks to-day are voluntarily
holding S163 900, 900 in these greenbacks
Representative Fowler thinks that this
requirement would involve no hardship
to the banks.
Providing for the deposit Of all public
money with the banks, the government
to get per cent interest and the rela-
tons between the government and the
banks to be no different from the pres
ent relationships Of states municipali-
ties and large corporations toward the
banks where they keep their money on
deposit
This feature resembles the plan Of the
Aldrich bill introduced at the last session
of congress, with the important differ
ence, however, that the government
3. would secure 2 per cent interest, as
against nothing in the Aldrich bill, but
on tlI other hand. would not require the
banI to invest in government bonds anc
other securities to be used as guaran
tee for the deposits, as in the case of the
AldriCh BILL .ru. - ~. 4.
provision for asset or Credit
currency. National banks, will be per
mitted to issue such currency by depos
iting in the United States treasury gol(
coin or government bonds equal to 5 PEI
cent of the amount so issued; and this
per cent, together with the per cen
interest upon government deposits and {
/ per cent tax on the notes thus issued
would constitute guarantee fund
When this guarantee fund amounts tt
more than $10,O0O,0O0 the excess owe
this amount will be utilized in purchasing
gold bullion to be placed in the issue AM
redemption divisions of the treasury 70
the purpose of converting the greenback
into gold certificates.
This last feature will therefore supplan
the first feature for the impounding o
the greenbacks.
Andrew Carnegie's gifts for the yea
numbered 15S and amounted to $6.679,00
They were for buildings and given sub
ject to the usual conditions that a sit
be provided and that 10 per cent of tn
of the erif ba Y,1e for