New-York tribune., 1906-11-09
NEED CURRENCY REFORM.
Charles n. Conant Speaks Before
Bank Clerks.

There was large meeting OF the New York
Chapter OF the American Institute of Bank Clerks
held at their rooms in the New York University
Building. No Il Wayerley Place last night. Charles
A Conant, treasurer of the Morton Trust Com
pany and author OF several works on banking, dis
cussed 1.-The Importance Of Currency Reform" He
received rising vote Of thanks at the conclusion
OF the discussion and answered several questions on
money matters put him by the members In his
audience
n. D. AllIng. Of the Nassau Bank. presided 1t
was voted to adopt the various bylaws and sug-
sestlons that have been adopted recently By the
general council OF the American Institute Of Bank
Clerks.
Mr.. Conant said that the country had outgrown
the system of bond secured currency, which was
originally only measure, like the Issue OF
the greenbacks. Every other civilized country had
a scientifc banking system, he said, and IT
was time for the United States to deal with the
question. instead of waiting for the compulsion Of
panic and a period of distrust- 1t important.
however, not to take any steps which would in
ture the market for the United States bonds and
depress the value OF those now held by the banks,
he said. Mr.. Conant said that this essential ques-
ton not of the quantity OF tho currency,
but OF it's character. There had been increase
IN the circulation. from 81 per capita in 1895 to
$50 SS IN 1906. This, however. extreme COM
parison as the amount per capita s2i So In the
prosperous period ended with the summer OF 1893
Continuing. he said:
There several for the absorption OF
Az
the general rise in prices by about Is per cents
which would naturally involve the use of a larger
volume OF money in retail transactions. Another
cause was the rise OF wages a result Of general
prosperity which enabled the wage Garner TO carry
more money about his person that he was likely TO
do in less prosperous times Another cause WAS 1ha
territorial extension Of the Of money caused
by the opening and settlement Of great areas of
country in the West not before occupied and by
tho wider use OF currency in communities which
had long been settled but had not before been able
10 command q large amount. Another irnDOrtsnt
cause was the great extension of banking credits
which locked up enormously greater sums in re-
serves than had been required during the period OF
dull trade from 1888 10 1897 There was little indI-
cation yet that prices in the United States had
reached q level above those OF other Countries n
this were the case gold would DO going out in
stead OF coming In.
Notwithstanding these favorable conditions at
present. however a large stock OF paper which
was rigid In quantity, and did not diminish when
the demand for IL declined. might prove a serious
The United States now has outstanding in green
backs 1916 900 900; In Treasury notes 81 900 900: i'm
silver certificates, %1SOOO.OO0 and in national hank
notes. 1888 900 600 making total of 81 44 900 OOO
without counting about 500 600 600 In silver Collars
and subsidiary silver OF tho increase in these
forms OF paper, nearly all had come from the ex-
s75 00 o00 in 1885, to S6S3 900 coo present tima
The present banknote is practically a government
note and is not governed by any proper system 10
compel prompt redemption when it is neeted
business activity should relax so that the country
needed $500 900 A00.000.000 less currency as
happened in 1894, there great danger that the
banknotes would not be retired rapidly and that
the surplus OF currency would go abroad In the
form OF gold. This movement might be carried so
far 10 impair confidence again In tho stability
OF tho government paper money, at least compel
circulation. This would be expensive and un-
fortunate way OF maintaining the Integrity OF the
gold standard II FOR this reason that tha
Chamber Of commercs oommittss felt that the