Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-10-23
No EXPRESSION ON CURRENCY
Henry ". Yates Says Bankers Did Not
Decide Policy on Question,
TINE TOO uMTEB FOR FREE DISCUSSION
In Five Minntes lie Impressed His
UiaRpprOval of Elasticity Plan
Upon the So. Louis
Convention

The Omaha bankers who attended the
convention OF the American Bankers assoc
citation in st. Louis last week have re-
turned. all Of them declaring the meeting
was the largest and most interesting in
the history OF the organization. Some were
outspoken IN their praises of the work Of
the convention. while others we're inclined
to offer criticism, especially on action. or
rather lack OF action on the subject of
currency reform.
Henry w. Yates, president OF the Ne
braska National bank, interviewed on the
subject, said:
"The convention was largely attended as
usual and the social features had their
customary prominence, but it cannot he
said that the convention gave any decided
expression on the currency question. which
had been predicted from It. Small oppor-
tunity was given for the intelligent dis
cussion Of the question in its numerous
phases.
FOR years an agitation has been carried
on by certain prominent bankers and fnau-
clal writers In favor Of the insurance OF
unsecured bank notes, TO give to our system
what is called elasticity-a quantity which
It is claimed it lacks-and by inference at
least the idea is conveyed that It Is dis
tlngushed In this respect from the cur
rency systems of more fortunate nations
All the addresses delivered and papers read
were along this line, including among the
number one from the comptroller of the
currency and one from Congressman Fow-
Ter Of New Jersey, the latter having made
a speciality OF the subject for years past.
Only Five Minutes per Speaker.
THE question was opened for discussion
at the conclusion Of the report Of the leg
islative committee. Only FIVE minutes was
allowed to any speaker and as anyone was
al liberty TO talk. end there were numbers
present having their. numerous plans to
present. the chaos which followed could
easily have been anticipated. Those OPP
posing all the plans, like myself. we're Of
fered the slimmest kind Of a chance to say
anything.
II opened the discussion just so soon as
It was possible and jendeavored to present
as forcibly as I coGld in the limited time
given. my objections TO all the plans sub
mitted. stated first that any proposition
submitted by bankers must be clearly and
distinctly in the public interest mad not in
their special interest as bankers; that
distinction should be drawn between plans
which would increase in any manner the
volume Of currency now existing and plans
for an emery ncy circulation, which was
generally favored by all bankers, but which
provided for currency which It was al
ways hoped would never be issued and
II issued would be soon retired; that the
elasticity so much written and talked about
had no existence in any other country, un-
less it might be France, In Great Britain,
l said, the greatest financial country in the
world, the Bank OF England can Issue
notes only against the public debt or
NJ col
Bank of France, which is the only bank
in that country authorized to issue notes,
is practically a part of the government
itself. tsa arT
Bar TO Further Expansion.
81 then declared that the existing volume
OF credit money with as absolutely pro-
hibited any further expansion. Its volume
and the per capita were larger than any
country on. earth excepting only one small
South American state which was not on a
metallic basis. s"'
Figuring all our circulation which de-
pended upon the gold supply for its parity
Herewith and its volume aggregated
! 81. COO. 100000 with per capita OF nearly
$40. In Great Britain the per capita was
about S.; in France Sl3, and in Canada,
about $l2. 80
Il then proceeded to show what I thought
the effect upon the country would be il
bankers should formally declare the neces-
sity Of having more money. 1 said the
silver question was declared TO be not an
issue at present, but that it was not dead.
and those who forced its free coinage
could with this evidence easily claim their
| contention to have been right. 1t was, l
declared, in the power of any administra-
ton. in case our gold stock was depleted
from any cause to put us off the gold
standard, and that instead of proposing
schemes for adding to our paper circulation
It would be wiser to get rid Of part of
what we already had, which constituted a
standing menace to the fundamental basis
of our money system.
Here my time expired, before I could
clearly show my conclusion. / was sur
prised at the expressed approval my talk
received from the convention Judging
from all that had been said before. l ex-
pected a frost A delegate from Kansas
added to what I had said concerning Ne
brasIa. that the bankers-were unanimously
opposed to all schemes which would in
crease the volume of paper circulation.
THE convention finally side-tracked the