Omaha daily bee., 1906-12-09


Henry W. Yates. president OF the Nj
braska National bank. Omaha. delivered
an address before the Nebraska Bankers.
association in opposition TO asset cur
rency. Mr.. Yates has written Tor the
Commoner an article presenting his We've.
While the Commoner does not entirely
agree with Mr.. Yates. his article viii aid
Commoner readers in obtaining q correct
view Of the dangers involved in the propo-
siuon now urged by the "no-cent dollar
people. Read Mr.. Yates article carefully
Here 81 IS:
The so-cared asset currency. but which
would be more properly termed credit
currency for the reason that 30 will be
unsecured and based only upon the credit
~ the Issuing banks, seems to have re-
Gently gained considerable impetus. and
stands a good chance Of getting a foot
hold in our financial system. hy the BASS
age u a law authorizing It at the ensuing
session OF congress. The scheme now
prominent was prepared IN remarkable
manner and IS launched upon the country
IS an unanimous agreement among bank
ers. In the report Of the special COM
mittee Of the American Bankers aSsocIa-
ton proposing this measure # is declared.
That tho present volume Of bank notes IS
wholly trresponsfve 70 the demands Of
commerce. Il does not expand with the
need OF currency IN the crop moving pc
r1od- causing stringency: nor contract
when the uses for currency are less ex-
tensive causing n redundancy" Under this
specious pretense Il is proposed 10 involve
this country into a system Of bank note
currency which met with its quietus nifty
years ago. The committee does not ex-
pain how Il Is that the mere failure 10
expand should cause a strin~nucy. Il IL
certainly something else which causes the
strinEency. What. Of course. % means is
that the use for money at certain periods
Is greater than its supply. This IL a con-
ELTON which frequently happens in this life
both 90 banks and individuals Bank notes
are singled out as being this very defec-
tive currency. but why should not eold
and United States notes be embraced in
the same category failures TO ex-
pand ought also to cause stringency under
Ike circumstances.
said that this committees report was
prepared in remarkable manuer-the
facts will justify. I think. the assertion
In order doubtless to be rid Of a question
which was constantly "bobbing up.'' the
convention Of the American Bankers as
sociauon hold last year voted the anpoint-
mont Of committee 60 report upon the
currency question at the next session. This
committee presented its report az the con-
vcntion lately held in st Louis There
was no possibility Of this committees
recommendation being adopted and the
result would indicate that the main iuteu-
tion was in some way 20 get the associs-
tion committed to the general proposition
q in such manner as TO have the appear
Nance Of unanimity. In the discussion OF
9 l.r
and addresses in It's favor but by the adop-
ton Of cast iron rule. only i've minutes
were allowed to anyone who might have
something to say against it. This was the
unanimity mentioned in the committees
report. Whether so especially designed or
not, there could not have been a better
organization in q packed political conven-
tion 10 accomplish a definite purpose than
there was in this convention to stampede
the bankers Of the country into favoring
the scheme by causing Il to appear to be
the unanimous conclusion Of the bankers
there assembled.
In the late hours Of the convention, when
other matters were pressing, resolution
was put through for the appointment Of a
committee Of fifteen TO prepare plan for
submission to congress. OF the fifteen the
five members making the report whose
position was well known, were specifically
named and the remaining ten were 70 bJ
selected in a manner which practically pre-
cluded the possibility Of any one beinl
appointed who did not agree to the PROPOSE
ton.
Here was unaninty again.
The proposition is clearly and distinctly
IN tho interests Of the banks. What publi
interest may be Joined with the banks
interests depends solely upon the assertion
that the additional issue of bank notes 6
''imperatively demanded" in the bushes
Of the country.
BY inference certainly, II not directly
this must mean that our present volum
OF currency Is inadequate.
Leaving out the volume Of gold entirel
and figuring only what may now be calle
credit money meaning thereby all none
which depends upon gold for the main
tenance OF It's parity, and the volume c
this composed Of United States notes. ma
tional bank notes. silver and silver Gel
tihcates-is about Sl.6OoO00.OO0. This Is
per capita Of nearly SO against a per capt.
OF similar money in Great Britain Of $50
Germany s5.74 Canada Sass and Franc
N2SS ANY increase OF this volume ei
larges the load upon our gold supply, whic
Is now ample, aggregating about 81, 200
O00OO0 we cannot always expect TO hay
prosperous years-the balance OF trade ma
sometime turn against US. and our 90