Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-16
American FINANCE
It's Features Discussed by
rs -!
Treasurer Roberts.
ADDRESS ITO BANKERS
STRENGTH AND WEAKNESS OF
OUR MONETARY SYSTEM.
It's Stronghold Declared to Be in Our
Actual Gold Supply as Well as
in the Statutes.
ITO BANKERS

in the Statutes.
NEW YORK, September 18.-The election
of officers for the coming year was the
principal event scheduled for the closing
session of the American bankers conven-
ton today. The only addresses were deliv-
cred by w. E. Schweppe, manager of the
bankers department of the American
Credit Indemnity Company of st. Louis
Mo-, who spoke on Credit Indemnity and
Its Value to the Banker" and Ellis II.
Roberts, treasurer of the United States on
THE Strength and Weakness of American
Finance" Mr.. Roberts said:
Mr.. Roberts Address.
FORTUNATELY, the United States is not
asking for new loans The government Is.
not increasing its debt by long bonds or by
exchequer bills for temporary needs. If In
any monthly outlay exceeds income the def
cit is covered by previous surplus laid
away Individuals and corporations reach
out for vast sums in loans, but the nation
is not a borrower in any market.-Its in
terest-bearing debt at the beginning of the
fiscal year 1898 was $s47 ,365, $780, and the
annual interest was $34 49,, 315. A loan of
$2O0,O00,OO0 was made by popular subscrip-
ton for war purposes. Yet at the start Of
the current fiscal year that debt was only
1895, 167 40 and the annual interest was
s24. lie. 745 In the interval the government
has paid the cost of the Spanish war,
$20,OOOOOO under the treaty of Paris. and
$5O,OOO.OOO on account Of the Panama canal
Now the nation stands on a granite basis
of credit, and over the door of the treasury
may be inscribed: We are not borrowing
here
Began Without Reserve.
THE United States notes. at first and still
in theory forced loan, began without re-
serve behind them. The resumption act,
which aimed to redeem them in gold, gave
them power for mischief as weapons for
assault on the official treasure. Danger
arose when the revenue was inadequate, and
the treasury became impoverished. Peril
ceased when a surplus was created, and
the yellow metal flowed into the national
Golfers. In itself the United States note is
weak; 1t gains strength as gold is put be-
hind 1t. The practical banker may join with
the theorist In the wish that it may pass
gradually into the gold certificate. That
change is going on without jar or friction
on two paths; first, blythe increase In the
gold In the treasury. and second, by the use
of notes of $40 Instead of those of larger
denomination. In five years the $40 notes
have run up from just less than 500, 600, coo
on July l. 1900, to $19B 459 321 in 1902, to
$40, 44o011 on thessame date in 1904.
Congress could without friction use at
once $50, 600 of the gold reserve for GER
tifcates of $40 and s.. las a substitute for
United States notes offered for redemption,
and In each succeeding year apply like sum
from the Inflow to continue such change The
redemptions of United States notes last
year were $122 $4,000 and the average for
five years $101 ,231 900 ut would be easy to
transform half Of this sum into gold GER
Silver Dollars Assaulted.
1.-THE silver dollars have Of late been Sc
Verplv aSsailad in n oP
They are denounced as EXCESSIVE In volume
and as a menace to the Integrity of the cur
rency. Demand has been loud for their re-
demption in gold. and for the reduction
OF their number by coinage into fractions
reductions have been put forth that some
omc1al may, at his option, pay them for
iuterest or some other high obligations
assault on a fortress does not prove that IT
is Vulnerable, but 1t does challenge vigilance
and defense. ~
The suggestion is urged for the gradual
supstltnuon Of government certificates
covered by gold and silver. Bankers are
questioning the profit of putting out circu-
iatlon, and some great Institutions restrict
their deposits of bonds for that purpose to
the lowest amount permitted by law
while less than one-sixth Of the entire
circulating medium, bank notes give rise
10 by far the greater share of discussion in
the Held of the currency. Is such cur
rency deformed and nervous sister in the
family, requiring most of the expert care
of the doctors? Or is it Cordelia among
!, Lear's daughters, constant, faithful and
true, dispensing comfort and blessing? Abb
solutely safe as they are, everywhere cur
| rent for purchase and payment, these notes
are the storm center of financial contro-
versy.
Paper Money Unelean.
"Of late another weakness in our cur
rency is vigorously exposed The paper
| money is not clean. Banks are not willing
to pay the charges for transportation to
secure new bills; If they were, the face of
| the notes could be kept more nearly fresh
as the believed morning flowers No gen.
eral agreement on such policy Is likely.
Can Congress be induced to spend half a
million million dollars year for the
| increased redemption, the larger number Of
new bills. and the cost of shipment in and
| out? The answer can hardly be given here
and now.
instability Is not virtue in finance In
this country no topic Is too sacred for dis
cussion, and statesmen and professors,
editors and orators have not had the field
| of the currency to themselves. Every one
who can sharpen pencil, or own type
| writer, or get an audience in club or on
corner can tell you where Hamilton was
wrong, where Congress has blundered, how
useless is our nations experience. The halls
of legislation are open to every scheme.
The theorists who assume infinite wisdom
| and discern only ignorance and vile mo-
| tives in opponents are always busy. The
cynics clothed in malice, who find nothing
| good in existing conditions, and the tuft
| hunters who prefer foreign methods to
anything American. never fail of occupa-
ton.
MANY projects. many devices. many
cocks. and If the broth Is not always per-
feet. 1t serves fairly we'll and might be
verse At the last session of Congress.
| which was not very prolific, no less than
twenty-one bills aiming to change our cur
rency were introducedI
Stronghold Of Our financial System.
The stronghold of our financial system
| is its actual gold. as we'll as our statutes.
| The world has about $500. 5000 Of this
| metal. of which the United States has in
it's stock S1,342. 422.740. In the last re-
| ported year the world produced less than
$500, O0O, O0O of which our mines gave
| $50. 100000 Our treasury holds 500. OOO,-
| 600 in gross, and our~banks, national and
| other. have $3O0,O6e0 900. approximately.
/ O. nll IL