The Norfolk weekly news-journal., 1906-11-30
NORFOLK BANKERS HOME
GOOD SIZED DELEGATION AT.
TENDED OMAHA CONVENTION.
AGAINST CURRENCY REFORM

Ideas Which Had Been Expressed in
Norfolk Several Days Before the
Convention, Prevailed in the Meet.
ing-Burnham Member Of Council.
Norfolk bankers who attended the
state convention in Omaha, have re-
turned They were; G. Il. Burnham,
w. A. Witzigman, George D. Butter
field, l.. +. Pasewalk and j. b. May
lard c. Il. Burnham of this city was
made one of the new members of the
executive council for four years.
While Norfolk bankers have hest
tated in the matter of giving their
views on the proposed currency re-
form, some of the opinions as ex.
pressed in this city prior to the Omaha
convention were very much in line
with the resolutions as adopted against
the proposed reform. The principal
objection to the reform, as expressed
several days ago, was the fact that
speculation might ensue. The west
now has money enough to run it and
enough to loan to the east; idle funds
from the west find their way to New
York in the summer; the New York
banks use those funds for various in
vestments; the crop season comes on
and the west calls for its own money.
Then the New York City banks, hav.
ing put the surplus funds to work. feel
shortage and complain. 1t was
thought that the currency reform was
desired by the New York banks for
the purpose of relieving this very nor
NAL and harmless Shortage" as it is
called, though it is in reality merely
a call by the west for it's own money
The fear has been expressed that, by
increasing the currency at those times,
no real relief would be brought, as the
New York banks could easily pay the
high tax for the sake of the money
and, having invested the surplus that
they could secure, another and a more
serious Shortage" would present it.
self for solution. 1t would be a means
some said, of simply going deeper and
deeper, and there might be Imitation as
a result.
at is Bryan's Idea"
"The idea of creating a surplus cur
rency for critical moments" said one
business man, Seems to me to be a
return to the idea of Bryan in 1896
that what we needed was more money.
Bryan suggested more silver, at 16
to l, while the present proposed re-
form suggests banknotes loaned on
banks credit by the government, and
the government means the taxpayers
of the country. In 1896 everybody was
condemning the scheme but now, in
new dress, it is receiving endorse,
ment in New York. 1t might be all
right for New York, but the west
doesn't need it. 1t is the safest plan
to let the money system alone"
These ideas, after lengthy debate,
prevailed among Nebraska bankers
The action of the Nebraska conven-
ton is notable in that this is the first
state to take action on the recently
proposed plan.
The report of the resolutions com.
mittee, which was adopted, follows in
part:
I'VE recognize the great differences
between stringent money situations
brought about in the ordinary course
of business and the critical conditions
which exist in times of bank panics,
when money needed in commercial
business is arbitrarily withdrawn and
locked up by frightened bank deposit
ors. In such times an extra money
supply Is imperatively demanded to
prevent business stagnation and its at.
PENDANTS, bankruptcies and losses.
1--WE therefore ask the adoption of
the following resolutions:
Resolved, That we are opposed to
the issue in time of financial peace
like the present, of any bank note cur.
rency, except that now authorized Sc
cured by deposit of United States
bonds.
Resolved, That we favor Legislation
by congress authorizing the issue OF
an emergency circulation which will
be taxed so heavily that it would not
be issued except in time of great com
mercial stringency and impending pan,
les and would be retired when the
conditions requiring its issue no longer
exist.
1--WE further recommend the adop
ton of the following resolutions:
Resolved, That we favor the re-
peal of the provision in the national
banking law limiting the redemption
of national bank notes to S3,000,0O0 a
month"
hopEoI1 pupI,c ocnooIo