Indianapolis Journal, Indianapolis, Marion County, 13 January 1897 — Page 2

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THE INDIANAPOLIS JOURNAL, WEDNESDAY, JANUARY 13, 1897.

lie raited Upon Rev. M. T. Haines, of the .First Presbyterian Church, to ofTer prayer, ana as the minister Invoked the divine biasing the delegates arose to their fect. This was Mr. Haines's prayer: "Almighty God. our heavenly Father, Thou art the. fountain o: all our blessings, the giver of every good and perfect cift. "With grateful l earns we come before Thee to acknowledge Thy goodness and to a-scrito unto Thee hs Thy servants all praise and honor and dominion and love. How precious are Thy thoughts unto us. O God; how great is the sum of them. Wo behold them In part In the multiplied blf ssings by which we rind ourselves surrounded in this, our leloved country, and in thin, our own time. A citizens of this great Nation we acknowledge our dependence upon The. Thou bast not dealt so with any nation. Truly, the lines are fallen unto us in pleasant IIaces. and we have a goodly heritage. We recognize Thy providence that ha been over U3 in all the years since our Nation was established, bringing us through dark days and through brieht days, and ever conducting us to larger and more blessed Issues. "Iet Thy special blessing rest now. we humbly beseech Thee upon Thy servants gathered here from ail parts of this great land. Guide them by Thy spirit; direct them In all their deliberations; uplift them, we prrfi Thee, by a spirit of larsc wisdom and lofty patriotism. Eift them and elevate them above all narrowness and selfishness of vision, and so grant to direct them in their different sessions that the results of this national conference may be e.ven beyond what they dared to hoie for. that tho Interests of our land, so dear to all of us, may be purified and enlarged and uplifted. O. God of nations, our fathers looked unto Thee and were enlightened. Let the light of Thy countenance be uyon us at this time, and be gracious unto us. and the praise nhall be thine through -su Christ, our .Lord, forever and ever, amen." MR. HANNA'S TALK. Upon the conclusion of the prayer Chairman llanna again spoke. Said he: 'G?ntl.?men of the Convention As the representative of the executive committee, whose business it has been to assemble this convention, I desire, in tho name of that committee, to express to you the most cordial welcome that it Is possible for me to make. We have endeaored to take each man by the hand and express to hirn our full appreelxtiin of what it means for you to come here and participate at this season of the year in this meeting, and we desire to say that wo understand and appreciate the nacriiice you have made, and to those of you to whom we have not already extended the hand. I desire to say we do to now. cordially. In the name of the committee I repres4t. The lirst thing in order, gentlemen, will be the reading of the call, the invitation to which you have responded. I wld ask the secretary to rad it." "Tho next thing in order." concluded Mr. Hanna, "will be the reading of the call, the Invitation to which you have responded, and I will ask the secretary to read it." Temporary Secretary Jacob W. Smith read the call for the convention, which has heretofore been published. EXECUTIVE COMMITTEE REPORT. "The next thing In order." resumed Mr. Hannu. "Is the report of the executive committee. The executive committe appointed by the preliminary conference held in the city of Indianapolis on the first day of December, 1856. respectfully reports that, purt.uant to tho resolution of instructions adopted at such preliminary conference it has sent out invitations to boards of trade, commercial clubs and such like organizations in all the cit!cs of the United States having a population of 8."00 and greater, according to the last census, requesting these to send delegates to this convention pursuant to the call issued by said preliminary conference, and through these invitations thus Issued there are assembled here 250 delegates, representing business organizations and cities in nearly every

State In the Union. i-iider the provisions tho organization of the executive comrmttee and in accordance with the duties ed upon the same, the committee re;pcd!fully recommends for the temporary organization the following: "1. That the rules of the present House of Representatives of Congress, so far as the same are applicable, shall regulate the proceedings of the convention, undr the temporary organization. "2. That the temporary organization, through Its chairman, shall appoint the following committees: "Committee on credentials, consisting of fifteen members; a committee on permanent organization, consisting of lifteen members, and a committee on rules and order of business, consisting of fifteen members. "3. That all resolutions concerning the currency and banking system and mode of procedure shall bo referred without debate to the committee on resolutions to be appointed by the permanent chairman. "4. That In voting the roll shall be called by tho boards of trade, or other organizations, and each organization shall bo entitled to one vote for each delegate present from such organization. '5. That tho hours for holding the sessions of the convention shall bo as follows: Morning session. 10 a. m. to 1 p. m.: afternoon session." 2 ::X p. m. to 6 p. m.; evening session. S p. m. to 10 p. m. "6. For temporary chairman tho executive committee recommends E. O. Stannard. of St. Lout. Mo.; for temporary secretary. Jacob W. Smith, and for sergeant-at-arms. W. F. C. Golt. and that the. temporary secretary and the temporary sergeant-at-arms eac.i shall have the power to name assistants." The above report by the executive committee was concurred in. and bo rnnounced ty the chair, and Mr. Dodge, of New York; Mr. Wler, of Chicago, and Mr. Crawford, of Texas, were appointed as a committee to conduct the temporary chairman to the chair. . , TIIC TEMPORARY CIIAIRMAX. Add re Made by Ex-Governor Stanard. of Missouri. Ex-Governor Stanard was applauded as ho stepped from a rear seat on, the stage. He Is a tall man, with the apiearance of a Scotchman. His voice was easily heard. In taking the gavel as temporary chairman he ?poko as follows: M desire to thank you for the honor you "have conferred upon me by this call to preside over tho temporary deliberations of this convention. Early In December, at the Instance of the lioard of Trade and the business men of Indianapolis, a preliminary monetary conference was called to meet here, consisting of representatives of commercial organizations of some of the central Western States, and that conference was composed of some fifty business men. "After h thorough and rather romprehenplve discussion of matters under consideration it was resolved to Invite the commercial organizations of the United States to Fend delegates to a convention to be held In this city to-day to consider matters of importance pertaining especially to the financial policy of our government. Pursuant to this action you have here assembled, and I congratulate you and the country upon the assemblage of this convention of business men to consider matters of to great importance to the country. "It is not my punose on this occasion to suggest an' given line of policy to be pursued In remedying e evils of which complaint has been made or that may be suggested here or hereafter. Hut I may mention, to my mind, some of the most glaring defects In our, financial system. In this connection it in safe tor m to say that the stability, prosperity and safety of our commercial, manufacturing, banking and agricultural operations depend upon a safe, comprehensive and stable financial policy XOr our U t. ii ut i uuu may uc relied on to last from one year to another and from one iwditical administration to another, and to be taken, as far as possible, out of the realm of politics. 'Confidence is the foundation on which business and all affairs of material Interest are built. There should be enough money to do the business of the country, and there hould be no doubt about its character and no shaking of confidence to take it out and keep it out of circulation. The people of the United Statr s not only should have confidence in our financial methods, but all the natfons of the earth with whom we have commercial relations should have assurance of the stability of our financial affairs, so that they may know on what basis they are working. This is of great imtortance to us as well as to the foreign nations when we take Into account that during the last year we exported to foreign countries more than a thousand million of dollars worth of the surplus of our soil and the industries of our people, and Imported a little more than seven hundred millions of their products, and while our operations with foreign countries may not be quite us large ev.ry year as this, they are always of enormous proportions. MENACE TO TREASURY RESERVE. "The present financial methods of the government are largely those adopted during the war, when there were great emergencies. I believe taut there Is a very strong and constantly Increasing conviction among our people that some method should be adopted for the retirement of the United States and treasury notes, and that they should not much longer be tolerated as a circulating medium. They have been a hindrance to the prosperity of our government for many years. They are a constant menace to our treasury reserve and to the credU of tho government, and when encroachments are made upon these reserves commerce stands In fear and trembling. Tbfcre avvms to be a wen-defined conviction.

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among business men from the experiences of the past that there should be no notes in circulation which should not be retired when their office had been fulfilled. Whether these notes should be retired at once or gradually I am not disposed to say, but of the necessity of their retirement I think there can be no question. I would retire them by the sale of long government bonds at a low rate of interest, if there can be no better way devised for their withdrawal from circulation. "While I am mentioning some of the defcts, as I believe, of our monetary system which come to my mind. I would say that I see no reason why our national banking law should not bo so amended as to allow the national banks to Issue notes up to the par value of the bonds which they hold as a basis for their Issue. Instead of Issuing, as they are now compelled to do. only if) per cent of the par value of the bonds that cost them perhops IIS to 12). This would help jn giving us a larger volume of circulation and be an Inducement to the banks to issue all the bills they could under the new law. Many of the banks, .as the law now stands, do not Issue all the notes they are authorized to do. because much of the time it is not profitable for them to invest in bonds at 1LM when they can not avail themselves cf an Issue of more than if) per cent, of the par value of these bonds they purchase. Then there is a tax of 1 per cent, on the issue of the national bank circulation, and I see no necessity for so large a tax as this, as it must ultimately be paid by the borrower. I believe that the tax should be reduced to of 1 per cent. "There are many advantages connected with the national banking system of the country, and this system, I believe, might, with great benefit to all interested, be extended by allowing, under proper safeguards, the establishment of branch banks in smaller cities with largely reduced minimum of capital. I believe that there is no Instance on record where a loss has come to holders of national bank notes. NO PAPER MONEY UNDER $10. "There are many suggestions of reform. One is to withdraw all paper money under the denomination of $10, thereby forcing a larger volume of silver and gold to circulate in the hands of the people, and I believe this is well worthy of favorable consideration. "I do not believe that any criticism can with reason or justice stand against commercial or business organizations for taking an active interest and making recommendations to Congress in matters of so great concern as these which call us together. "I find from the last census that there Is an aggregate of over six billions of money invested in manufactures in the United States, and that there are over four millions of men employed in these establishments, and that the output Is over nine billions In value annually. I also find th-.t the average annual value of the cotton. whojU. corn and oats produced in this country is atout four billions of dollars, to say nothing of the value of cattle, horses, hogs and almost r. numerable other products of the farm and field "I am sure the banker, merchant, professional man, manufacturer, farmer, miner, artisan, mechanic and laborer all have a common Interest in the cause we are here to promote. In the language of Benjamin Franklin. 'We must all hang together or hang separate. The country' cannot permanently prosper if any of the essential Interests are neglected or sacrificed. All legislation should be for the greatest good of the greatest number. "However, It Is not my purpose to occupy much of the time given to these opening exercises, and while I may have some opinions as to the manner of procedure and as to the results of the deliberations of this convention, and as to what we should ask Congress to do, I believe It Is not within my province to make recommendations. Rut with the greatest confidence in your wisdom and In your patriotic devotion to the work in hand, I now announce the convention ready for any business which may be brought before it. What is your pleasure ?

THE COMMITTEES. Mr. Martlndale Hended the One on Permanent Organization. Chairman Stanard, after concluding his address, announced that the next order of business would be tho roll call by the secretary. Several members were on their feet and protesting that it would take up too much time to call tho roll of delegates, and finally W. C. Parsons, of Akron, O., moved that tho matter of roll call of delegates be referred to the committee on credentials, which was carried. Chairman Stanard then announced tho following committees: Credentials William H. Anderson. Grand Rapids. Mich.; E. A. Angell. Cleveland, O.; 1. H. Weare. Chicago: Louii Hollweg, Indianapolis; Herman Goepier. Cincinnati, ().; Evan Thonns, New York; Henry W. Iamb. Boston; L. L. Prince, St. Louis; S. W. Woodward. Washington. D. C: W. H. Dunwoody, Minneapolis, Minn.: S. D. Scudder. San Antonio, Tex.; F. A. Copcland. 11 Crosse. Wis.; J. It. Tledeman, Savannah, Ga.; Charles F. Libbey. Portland, Me.; James F. Cravens, Yankton, S. D. Permanent Organization E. 15. Martindale. Indianapolis: Murray Nelson, Illinois; F. B. Thurber, New York; C. H. Spencer, Missouri; D. B. Smith. Ohio: A. E. Willson. Kentucky: It. It. Bullock, Georgia; C. F. Pongal, Arkansas: Frank II. Peavey, Minnesota: William E. Tucker. Pennsylvania; William E. S. Seeley, Connecticut; T. C. Power, Montana; J. N. Simpson, Texas; William 11. Beck, Iowa; Blanchard Randall, Maryland. Rules and Order of Business E. V. Smalley, St. Paul; George Foster Pea body. New York; Rowland Hazzard, Rhode Island; Rufus B. Bullock. Atlanta: H. L. Higginson. Boston; H. C. Tompkins, Montgomery, Ala,; C. J. Hubbard. Kansas City; C. W. Baird. Detroit: T. C. Power, Helena, Mont.; Charles L. Pock. Cleveland; Thomas H. West. St. Louis; Thomas W. Osborn, Syracuse: A. A. Sprague, Chicago; P. G. Kelsey, Evansville; William Daggett, Ottumwa, la. 3IR. PAIUCIIILD'S VIEWS. The Ex-Secretary of the Treasury Addresses the Convention. After the appointment of these committees, the chair, addressing the convention, said: "What is your further pleasure until some of these committees are ready to report?" At this point there were cries of "Irish!" "Irishl" "Irish!" and C. W. Roberts, of Mississippi, moved that Mr. Irish, of California, be Invited to address the convention while the committees were making up their reports, but on being Informed by tho chair that Mr. Irish had left the hall, Mr. Roberts suggested that the secretary bo appointed a committee of one to hunt him up and bring him in, and Chairman Stanard, instead of appointing the secretary, appointed the mov?r ot tho motion as tho committee, and Mr. Roberts was sent to notify Mr. Irish of the action of the convention In desiring to hear him. Mr. M. L. Crawford, of Dallas, Tex., then moved that the convention adjourn until J o'clock, to which Chairman Stanard said, "Oh. no; let us not adjourn, although, of course, a motion to adjourn is always in order; I hope you will not adjourn." "It has been suggested to me." said the chairman, "that ex-Secretary Fairchild is in the convention, and I know the convention will be exceedingly glad to hear him for the next ten or fifteen minutes." The ex-secretary was conducted to the platform amid applause, and, on being Introduced by the chairman, spoke as follows: Mr. Chairman and Gentlemen of the Convention If 1 am to speak at all. which I do not wish to do. I certainly am very glad to speak before Mr. Irbm. rather than after him. Nothing can exceed in Impor. tance the purpose which has brought you here together. For the first time in the history of governments a scientific monetary question was submitted to a people for iupuhir consideration in our last election. It was a great test of our institutions, not alone in the way in which is was decided, but on the whole in the spirit with which it whs considered, because we were considering the adoption practically of a tool with which to conduct our business that and only that. Other men at other times in our history had considered similar questions, men differing as widely as possible in their political views: and yet. to them, there never entered an idea that party, section, race, nationality or worldly condition was Involved. When, at the beginning of our government, such men as llamlltor- and Jefferson considered these subjects they approached them with calmness of mind, having no difficulty In considering them side by side. Therefore it was a great test of our system of popular government when all these millions of people are enabled as a great mass of people to consider a question of that sort on the whole in that same spirit. ELECTION A NEGATIVE DECISION. It was most reassuring, but the decision that was arrived at was a negative one, after all. We stopped where we were. We went no further In one direction. Now the necessity is before the country of going onward and upward In another direction, and unless the educated commercial and business, community is alive and bestirs It

self to influence popular opinion, to educate not only their neighbors, but themselves as to what Is wise and best, then we will never attain a wise result. Therefore, It Is most encouraging that these business men of what we call the middle West have invited their fellow-business men of all parts of our broad country to come here and counsel together how best to Improve the tools with which we tranrer our property and our services from man to man. from city to city, from state to -state, and from nation to nation. (Applause.) This Is a question where no division of interest can exl?t; it is impossible for anyone to conceive of any portion of our country that has an Interest different from any other portion In the selection of this tool. (Applause.) Ask any man wnere he will begin to draw the line and you will find he never has been able to do It. Why, there has been an attempt made to draw the line between that portion of the country which I, as a member of a delegation of the chamber of commerce of New York, represent and some other portion cf tho country. They have said that our interests are antagonistic to the interests of other portions of the country, that other portions of the country are in debt. Owe mortgage Indebtedness if you choose, that the State of New York was the creditor of the whole country. Gentlemen, have you ever looked at the statistics given In the last census to see how the relation stands even on this question? Do It. and you will see that of the whole mortgage Indebtedness of these United S.tates 27 per cent, of It is upon property in our state of New York. Therefore, when this currency question is approached from the standioini of the debtor we, of the state of New York, owe more than one-fourth of the whole mortgage indebtedness of the whole United States. Therefore, if the debtor who has an obligation upon his real estate is to be benefited by any manipulation, of the currency we. of New York, will get more than onefourth of the benefit. (Applause.) Therefore our interest U not a sectional one, or an antagonistic one, to any portion of the country. Look at some of your other statistics. It has been said that we absorb all of the gold of the country. I looked at tho controller's report of last year to see how that stood, and found that the division that he makes of tho New England and Eastern States that New England in its deposits of It: cash held 42 per cent. In gold; the Eastern States neld 42 per cent.; your middle Western States held 51 per cent., and the Pacific States, including all those States that are supposed to be most interested the other way. held 70 per cent. Therefore you see there is no sectional division of interest or of habit or of resources. We therefore can approach this question as men with one common interest in one common country. FAILURE OF FIATISM. What can we do? What can we ask the government to do? I am not here, to lay down a programme, or to foreshadow or forestall, In any advice, the action of this convention, but I can say in my experience some cf tho things which all the power of these commercial bodies united, asking the government to do, and all the power of the government behind It, cannot do, and that Is to give a value to something by calling It money and investing it with the legaltender quality. (Applause.) That has been tried time and again in the history of governments and time and again the most powerful governments relatively to their people have broken down in the attempt. Therefore, that is one of the things the government cannot do when It attempts to go against the general consensus of the business communities of the business nations of the world. (Applause.) The one thing that experience shows that governments can do if they want to give tho people under then the greatest quantity of circulating medium, is to see to It that the quality of every part Is perfectly undoubted and perfectly acceptable to every section of every business community. (Applause.) Let me illustrate my meaning. A portion of our circulating medium is made up of money, what we call money, a very small portion. A very large portion is made up of what we call Instruments of credit, and in my opinion even over and beyond the physical and visible instruments of credits there is another large circulating medium which consists of a state of mind favorable to the circulation of commodities Now we seo the effect of any Impairment of the quality cf that portion of your circulating medium that consists of faith and credits. Let some one fail, let there be bad faith, what happens? Why. Immediately not only the portion of the circulating medium, which consists of the credit of that individual or that firm, begins to contract, but all other circulating medium of a similar character begins to contract, and not only that but all of the circulating medium which consists of money only begins to contract because men begin to hoard the money. Therefore, when the quality is impaired (and. gentlemen, you can impair the quality of it by your laws, by the Interfering with the collection of debts; you can imnair quality in lhat way. and whenever you do you diminish qualitj, the very thing that communities are seeking to Increase. (Applause.) RESULT OF CONTRACTION. On the other hand, take that portion of your circulating medium which consists of money only; let government begin to tamper with that that men are doubtful as to Its quality, and what happens? Why, not only it begir.3 to contract, tho money Itself begins to contract, because men hoard the best. Not only that, but that great body of your circulating medium which consists of instruments of credit immediately begins to contract, because men are doubtful as to what their balances will be paid in; and not only that, but that other great portion of your circulating medium which consists ot even a metal state begins to contract, because men are doubtful whether they want to do business at all or not. Therefore. I come back to it that the one thing that government can do, as shown by the, experience of mankind. If It wishes to give Its people the maximum of circulating medium, is to see to it that the quality is undoubted. (Applause.) And in all your deliberations, in whatever you do or whatever recommendations come out of this assembly, you will find that you will come back in the end to this proposition, simple as it seems to be: Attend to the quality and quality takes care of itself. (Applause.) Gentlemen, it is of vast importance hat something decided comes from these deliberations. This assemblage has been widely heralded. The world knows of It. It undoubtedly Pfcpresents the business of this country. It ought to be able to arrive at wise conclusions. It ought to have an influence which will enforce those conclusions upon the favorable attention of the law-making power. All this ought to be, and, I tell you, before the work of this convention is finally concluded, the business world not only of the United States, but of all the world, will be looking at it and at its results, and I tell you, gentlemen. If It shall be demonstrated as God grant that it may not be that there is within this body not sufficient wisdom to arrive at something wise and conclusive, or, if having so come, to a conclusion among themselves it is demonstrated that you are so far removed in influence from the law-making power that no results come from It, I tell you. gentlemen, you may tremble for the business and political future of this country. (Applause,) Better never have been called together; better have, never assumed to represnt anyone; letter never have pretended to have any influence than to have come here, ,as you have come, and have failure of any degree. Our business condition Is such that we cannot alTord failure; we must not have failure. Every one of you must carry this is your breast as a solemn duty, to do what you can to make the deliberations of this body a beneficence to your country. (Great applause.) You can do it if you will; you must do it. and you will do It if you understand the Interests of your country and of the business that you represent. (Applause.) THE GOLDEX COAST ORATOR.

Col. John I Irish Makes fine ot His Characteristic Speeches. At the conclusion of ex-Secretary Fairchild's address there were calls again for "Irish!" "Irish!" and upon the appearance of the California orator upon the stage he was cheered. He spoke as follows: Admonished by trying experiences, past and current, for the first time In the history of this Nation the business men of the republic have met to-day "to take up arms against a sea of troubles, and by opposing, end them." (Applause.) Let no man minimize either the perils or the difficulties of the situation. Moved on by a spirit of optimism for more than a third of a century, tho business of the country has hoped against adverse conditions. The strength of our youth and resources have met and mastered difficulties that would have conquered the strength of any other land on the earth, but at last we have reached a crisis which can be met successfully and passed successfully by no spirit of optimism. Hope is no longer a force that can sustain the business Interests of this Republic. Our financial scheme Is a sclume that has been permitted to grow through a series of patchwork expedients, with its radix in the far-gone emergencies of the civil war, until if I were to describe it in the terms of surgery, I would say our financial plan In this Republic is a complex, -compound, comminuted fracture, with a continuity from marrow out to skin (laughter) In violation of near! ly every sound and scientific princlpci

which should be the soul and the life breath of a national financial scheme. This system of finance, if it were an architectural structure, might be described in the language of the supervising architect of one of the capltol buildings in one of the Western States, which I went to look at once as an object of curiosity. I said to the architect. "To what order of architecture does this building belong?" Over the cradle of that architect the Bow bells of London had rung, and he answered me: "Well, sir. It is a hint at the HItalian and Norman style with an attempt at Greek wigor." Sycroax never bore a more freckled whelp than the financial system of the government, and you are here to see whether through your skill and wisdom it can be made to shed its skin. The spirit of optimism to which I have referred has gone on, and moved by hope, brightened by expectation, buoyed by the future in golden colors, the business of the country has continually warped Itself to these distorted conditions, but we have now discovered that in that warping process the business of this country has every time lost force, until that aggregation of lost force brings to us a business almost prostrate, and no longer possessed of the power of adaptive contortion to these distorted conditions under which it is compelled to transact its affairs. These, then are the difficulties. CONDITIONS MUST BE CHANGED. Business realizes that it is already so distorted that not another motion can be made to accommodate itself to conditions that are unscientific and unnatural, and your duty, my friends, is to suggest to the lawmaking power of this Republic this Republic which will not be long a nation of wealth, of the loyalty of its citizens, which will not much longer shelter under its laws that prosperity and human happiness which are the birthright of men, unless these conditions are changed. It is your business, gentlemen, to suggest to the law-makers the straightening out of the inequality of our financial system, to put simplicity in place of complexity, to conform that system to natural laws of finance. I am aware that we have many wellmeaning countrymen who join us in the impeachment of the weakness and the distortion of the superstructure of the finances of this country, and who believe, perhaps conscientiously, that the way to strengthen the superstructure Is to weaken the foundation. (Applause.) We are not here to discuss foundations to-day; we are concerned with what is built upon that foundation. We have currencies of many kind: . some with direct and some with indirect methods of redemption. We have a government engaged by Its treasury in a banking system the most vicious and unprotected that was ever forced upon the treasury of any nation. Why. the state bankers of Babylon, way back before people were able to read only cuniforni letters, would have rejected any such system as that under which we are living. Now. face which way we will, we are confronted by difficulties which stand over us like an army with banners. To many the knowledge of this difficulty is a thing to which they are accustomed. The consideration 06 remedies for it is a thing that is new to them. I believe, as the ex-secretary of the treasury, wise in finance, and with a prolonged and profound experience. I believe, as he has said, that lhe men who transact the business of the country are men who sit before me here to-day, with investments in every possible labor-employing and wealth-producing energy from ocean to ocean, and from land to land, the men here before me who have Investments In the gold and silver mines of the West, and the copper and Iron mines of this Republic. I believe that they who control by their Investments and promote and create by their energies the wage-paying industries of the Republic, which not only put the dinner into the tin pall of the laborer, but which pay him the wages that entitle him to look forward to a condition of independence when he may become an investor himself. I believe that the men who promote all these mighty and majestic energies in this great country, with its excess of natural resources that in them is the wisdom to "oppose this sea of troubles, and by opposing, end them," THE DIFFICULTIES BEFORE THEM. It is not my place now to talk details, but it has seemed to be my duty that I should remind my countrymen who are here of the difficulties that Ho before them. This convention is singular and peculiar. It is individual among conventions held in this Republic heretofore. You are here without parties, unbiased; you are here without the pride of Individual opinion, you are here unfettered and unvexed by the flooding tide of political ambitions to solve a problem in the solution of which lies the highest and best welfare of your country, and your own business and financial safety. I hope that through some projected activity of this convention before this inquiry shall close, the men of this Republic, from the shores of tho sea of peace where I live to the Atlantic, and from the Gulf to the Dominion line will have consulted the men engaged In business, in wholesale and retail transactions in articles of commerce, in domestic and export and import trade, will have consulted the manufacturers and will have called into your councils th-3 thoughtful and reasonable leaders who represent the 15.OCO.000 of .A me r. can workingmen, who tarn wages in the occupations which lie at the foundation of all of the energies which are excited and incited by your capital and your enterprise, because there can be no prosperity that is not for all, and the reason that prosperity in this Republic has seemed to some of our countrymen to be partial and preferred. Is because that prosperity has been wrung by the few who have gained it against the unnatural and unscientific financial conditions which I have attempted to speak of. It would be wTor that I should detain you, or that I should seem to further arouse your imagination by picturing the difficulties that lie before you. I have Intended to make an apjeal to that highest form of business Intelligence known to the world, the intelligence and the courage and the patriotism of the representatives of the business classes of the Republic.

COMMITTER REPORTS. Just TO Delegates Present Speeches Limited to Five Minutes. Tho chairman of the convention called for the report of the committee on credentials. The chairman of the committee, W. H. Anderson, of Grand Rapids, Mich., read tho report as follows: "There aro no contests. The total number of delegates whose names have so far been reported is 270. The committee recommends that tho list of cities represented be read. The following is the list of the cities represented: Adrian. Mich.; Akron. O.; Albany. N. Y.; Anderson. Ind. ; Anniston. Ala.; Appleton, Wis.; Atlanta, Ga.; Auburn, N. Y.; Baltimore. Md.; Bay City. Mich.; Bloomington, 111.: Boonville. Mo.; Boston. Mass.; Braddock, Pa.; Bradford. Pa.; Bridgeport, Conn.; Brooklyn. N. Y.: Brunswick. Ga.; Buffalo, N. Y.; Cairo, 111.; Camden. N. J.; Canton. O.; Charleston. S. C. : Chillicothe, O.; Chicago. III.; Cincinnati. O.; Cleveland, O.; Concord. N. H.; Covington. Ky.; Pallas. Tex.: Davenport. la.; Dayton. O. : Des Moines, la.; Detroit. Mich.; Duluth. Minn.; Easton. Pa.: Elizabeth City. N. J.; Elkhart, Jnd.: Erie. Pa.; Evansviile. Ind.; Findlay, O.; Fort Smith. Ark.; Fort Wayne, Ind.; Galesburg. 111.; Grand Rapids. Mich.; Green Bay. Wis.; Hartford. Conn.: Helena. Mont.; Hillsboro, Ky. : Houston. Tex.: Indianapolis, Ind.; Jackson, Mich.; Jeffersonville, Ind.; Johnstown. Pa.: Joplin. Mo.: Kansas City. Kan.; Kansas City, Mo.: Keokuk. Ia.; Knoxville. Tenn.; Kokomo. Ind.; laCrosse. Wis.: Lafayette. Ind.; Little Rock. Ark.; Logansport. Ind.: Iouisvllle, Ky.; Macon, Ga.; Madison. Ind.: Madison. Wis.; Marion. Ind.; Massillon, O. ; Meriden, Conn.: Meridian. Miss.: McKeesport. Pa.; Middletown, Conn.; Milwaukee. Wis.; Minneapolis, Minn.: Montgomery. Ala.: Mount Vernon. N. Y.; Muncie, Ind.; Nashville, Tenn.: New Albany. Ind.; Newark. N. J.; New Brighton. N. II.: New Brighton, Conn.; New Haven, Conn.; New York city; Norwalk, Conn.; Oakland. Cal.; Omaha. Neb.; Oswego. N. Y.: Ottawa. HI.: Ottumwa, la; Paris. Tex.; Peoria. 111.: Philadelphia. Pa.; Piqua. O.; Pittsburg. Pa.: Port Huron. Mich.: Portland. Me.: Portsmouth. (.).; Providence. R. I.; Quincy. 111.; Racine, Wis.; Richmond. Ind.; Richmond. Va.; Rochester, N. Y.; Sairlnaw, Mich.: St. Louis, Mo.: St. Paul. Minn.; San Antonio. Tex.: Sandusky. O.: Savannah. Ga,; Seattle. Wash.: Sioux City. Ia.; South Bend. Ind.; Southbridge. Mass.; Springfield. 111.; Springfield, Mass.: Springfield. O.; Syracuse. N. Y.; Tacoma. Wash.; Terre Haute. Ind.: Toledo. O.; Troy. N Y.; Utiea, X. Y.; Vicksburg. Miss.: Vincennes. Ind.: Waco. Tex.: Washington, D. C; Wheeling. W. Va.: Wichita. Kan.; Wilkesharre. Pa.; Columbus. O.: Yonkers, N. Y.; Yankton, S. D.: Zanes-ville. O." Upon motion the report was unanimously adopted. LIMITATIONS OF SPEECHES. The report of the committee on rules and order of business was then read by the chairman of the committee, E. V. Smalley, of Minnesota, as follows: "Morning sessions shall begin at 10 o'clock, afternoon sessions at 2:30 and evening sessions at 8. "Any delegate presenting a resolution, paper or other matter for reference to the committee on resolutions shall be allowed five minutes' tli.'e to read or explain the same, and the tame shall then be referred to th3 t-ommittee without further debate. "In the discussion of any. rater that may

come before the convention, except the reports of the committee on resolutions, speeches shall be limited to five minutes each. Tho committee on resolutions may report tho recommendations In whole or In part, as they may deem best. In making a report, the chairman, or such members as he may designate, shall have half an hour In which to address the convention. If there shall be a minority report, the mover of such report shall also have half an hour's time, alter which speeches shall be limited to ten minutes each. "The previous question may be moved at any time, and if seconded by twenty delegates, the presiding officer shall proceed under the rul?s of the House of Representatives at Washington. "The rules of the House of Representatives, In so far as the same may be applicable, shall be the rules of this convention, except as they may be modified by the special rules adopted by the convention." On motion of Mr. Smalley the report was adopted. PERMANENT ORGANIZATION. E. B. Martlndale, chairman of the committee on permanent organization, presented the report of that committee as follows: "Your committee would respectfully recommend that C. Stuart-Patterson, of Pennsylvania, b3 chosen permanent president of this convention; that there be chosen by the delegates t each State one vice president, whose name shall be handed to the president of this convention by the delegates from the several States; that Evans Woollen, of Indianapolis, be chosen permanent secretary of this convention, with authority to appoint necessary assistants; that W. F. C. Golt, of Indianapolis, be chosen sergeant-at-arms, with autnority to appoint necessary assistants; that there be chosen, or continued if already chosen, a committee on credentials, to consist of fifteen delegates; that there be a committee on rules and procedure of one delegate from each State represented in this convention." The report was unanimously adopted. "I will appoint Judge Martlndale and II. II. Hanna, of Indianapolis, and Mr. Ixnvry, of Atlanta, Ga., a committee to wait upon Mr. Patterson and bring him to the platform," said Chairman Stanard. Mr. Patterson was escorted to the platform.

THE PERMANENT CHAIRMAN. 3Ir. Patterson Advises n. Refusal of ' All Compromises. Mr. C. Stuart Patterson, of Philadelphia, the permanent chairman, was weir received by the convention. lie has a commanding address, speaks decisively, and soon after his speech showed a strong hand with the gavel. He sioke as follows: I thank you for the honor you do me In inviting me to preside over your deliberations. You are business men. Your presence here proves your acceptance of the true definition of that term. Here to-day aro representatives of agriculture, of mining, of manufactures, of trade, of commerce, of transportation and of that vast aggregation of capital which is constituted of the earnings of labor and the savings of thrift. We may be partisans as to all questions that can properly be determined solely upon party considerations, but we are also, above all, American citizens. As American citizens, proud of our country's past, and hopeful of its future, we meet to-day to take counsel together as to. those great questions of public interest which relate to the currency of the country, and which ought to be decided on grounds that aro broader than those of mere party spirit. Meeting as citizens to consider a subject of common interest to the whole country. It is fitting that we should come together in the middle West, which is to-day the scat of empire, in the great State of Indiana, where last autumn the victory was won for the honor of the Nation, and in this typical Amercan city of Indianapolis. Let us approach the grave subjects that are to be brought before us with no pride of opinion, but in the spirit of that old maxim, which tells us that "In things necesarv there should be unity: in things doubtful, liberty, and in all things, charity." FAVOR NO COMPROMISE. But let us refuse to recommend any compromise, for such compromises hav always failed to accomplish their desired end because of their inherent inability to destroy the Irltating cause, and because of their essential inapplicability to changed conditions and circumstances. This country is an empire in its extent of territory, in the number of its population and in the magnitude of its material interests. There are densely populated areas of territory and there are scantily populated areas of territory. In the former there Is an adequate, and perhaps in some places excessive, supply of banking facilities. In the latter there Is a deficiency of banking facilities. Where these banking facilities are to an adequate extent not only are means of accommodation provided for responsible borrowers, but there are also those credit substitutes for money in the shape of checks and drafts which increase the volume of currency at the time when such an increase is needed by the people. Where the banking facilities do not exist to an adequate extent, unduly high rates of interest prevail and the demand for currency in general exceeds the supply. We, therefore, need for domestic purposes a currency of stable value, of full purchasing power, which shall be neither redundant nor contracted, and which shall flow Into the channels of trade when, and as the Interests of the country may require. CAPITAL IN WEST AND SOUTH. Tho continued development of the West and South demands that the surplus capital of the world should be brought here for remunerative investment. It Is In no sense Inconsistent with the protection of the home market that we look forward to the growth and Increase of our foreign commerce, so that our agricultural, mining and manufacturing products shall find that larger market which will give the American industry greater returns. For our International relations we need therefore a currency which shall be of full value In the markets of the world. We may differ as to the question of protection, or of revenue reform, but we can agree that the government must have a revenue adequate to its necessary expenditures and with a surplus sufficient to provide for possible contingencies. We can agreo that as that revenue must be raised by taxation, that taxation should be so imposed as to lay its burdens upon the people in the manner that can most easily be borne. We can agree lhat the existing standard of value shall be maintained. We can agree that bimetallism would be advisable if it could be secured by International treaty anl made practically effective. We can agree that there ought to be an enlarged and Increased use of silver coin convertible at par into gold. We can agree that so long as the government demand notes aro outstanding, .provision should be made by law for the maintenance of an adequate gold reserve, specifically pledged for the redemption of those notes. We can agree as to the fact that while in some cases shareholders of. ami depositors in. national banks have lost by unskillful or unfaithful management, yet no holder of a national bank note has ever had occasion to inquire what bank issued the note, or has ever lost any part of the amount of tho note. We can also agree that the national banking system should be so amended as to provide some method fot the more general extension of banking facilities to all parts of the country. THE CHIEF AGREEMENT. And chiefly we can agree that the right solution of the currency question In the whole country and of all the people Is of grcat Importance and should be the subject of more deliberate and detailed consideration than this convention can at its present session extend to it, and may properly be referred to such method of investigation as you in your wisdom may decide. Upon all these questions it is for you to determine the action of the convention. When the convention which framed the Constitution of the United States was about to assemble, Washington said: "If to please the people we offer what we ourselves disapprove, how can we afterward defend our work? Let us raise a standard to which the wise and honest can repair. The event Is In the hands of God." Let that view, expressive of the highest statesmanship and the truest patriotism, control our action. Let us raise a standard to which the wise and honest of all political parties can repair. In this country the people are sovereign. Nowhere else in the world Is there a more general diffusion of Intelligence or a higher average of moral character. The people must, as a tribunal of last appeal, determine what the curency of a great country ought to be. and. therefore, what the currency of this country will be. The Nation has -survived the shocks of foreign and of civil war. It has overcome the disintegrating Influences of territorlty and the growth of population. It has succesfully resisted the attempt to lower the standard of value. Let us have confidence enough in the people and have faith enough in our free institutions to believe that in the

future, as In the rast. the people will rightly determine the questions that shall be submitted to them.

THE RESOLUTIONS COMMITTEE. One Member from Enrli State Ilexresented Vice Presidents. Some of the delegates thought the convention would adjourn at the conclusion of Mr. Patterson's speech, but the desire to speedily transact the routine work of the gathering prevailed. The chairman announced that the first order of business was the selection of a committee on resolutions, one from each State, and a like number of vice presidents. A recess of ten minutes was taken In order to give the delegates an opportunity to confer and make their selections. At the expiration of the recess the chairman requested that each delegation put It selections In writing and hand the names to the secretary. It was suggested that the delegates le seated by States In order that they might more easily consult. Mr. Madgeburg, of Milwaukee, and Mr. Brush, of Indianapolis, suggested that the sergeant-at-arms could reseat tho delegates by States for the morning session. Mr. Irish thought If the janitor of the building would make a search he could find some State standards used at a recent famous convention in the hall. Secretary Woollen was called on to read tho list of vice presidents and resolutions committeemen. The following Is the list submitted, the first named being vice president and the second the commit" nan: Virginia Vice president, W. n R. Trigs: committeeman. S. W. Tra Michigan S. I Truett. N. E. I ler. Kentucky Simon B. Buckner, 1. an C. Murray. Maryland Eugeno Levering, John M. Nelson. District of Columbla-S. W. Woodward, B. H. Warner. Texas S. D. Scudder. M. L. Crawford. Massachusetts Henry E. Cobb, H. I. Hlgglnson. Mississippi J. A. Conway, C. W., Robinson. Illinois Charles Ridgeley, Franklin McVeagh. Maine Edward A. Noycs, Charles I. Libby. Georgia W. H. Ross, Rufus B. Bullock. Iowa E. A. Temple, 11. A. Jantz. Connecticut O. Vincent Coffin, Joel A. Sperry. Pennsylvania Joseph Wharton, John C. Bullitt. Montana A. M. Holter, T. C. Powers. Tennessee E. C. Camp, J. C. McReynolds. Ohio J. S. W. Cowles. Hon. M. E. Ingalls. Alabama M. P. Le Grand, H. C. Thompkins. Arkansas Charles F. Pcnzel, II. L. Remmel. Minnesota F. II. Peavey, W. B. Dean. Wisconsin X. B. Van Styke, F. II. Madgeburg. New Jersey J. A. Lcbkccher, Benjamin At her. Missouri Thomas II. West, George E. Leighton. Rhode Island Rowland Hazard. When the name of Simon Bolivar Buckner was called as vice president for Kentucky there was applause. Mr. Martlndale suggested that the vice presidents take seats on the platform, but the suggestion was not heeded, the vice presidents seeming to prefer their seats on the floor. The chair called attention to the fact that California had not submitted a name for vice president. Mr. Irish, the only delegate from that State, raised a laugh by remarking that the California delegation was now In consultation. Mr. Smalley I desire to remind the convention that at tho evening session It will be in order for all delegates having resolutions or plans of currency reform to present them for reference to the committee on resolutions, and that each delegate making such a presentation will have five minutes' time In which to address the convention. It is very important in expediting the work of the committee that this material should be in tho hands of the committee this evening. Upon motion of C. IT. Williamson, of Quincy. III.. J. H. Walker, of Massachusetts, was Invited to address the convention. .1. II. WALKER'S ADDRESS. lie Reviews the Conditions Existing Under Present Currency System. J. H. Walker, chairman of the House of Representatives committee on currency and banking, on being Invited to address the convention, referred briefly to some of the remarks made during the progress of the conference and dwelt upon the necessity of emphatic action by the convention. When ho asked the delegates what they proposed to do there was a shout of "Act!" Continuing in his address, Mr. Walker said: We meet under circumstances that always attend any convention or assembly of citizens seeking what they believe to be a great reform of existing evils. Those who benefit by, or. at least, are not injuriously personally affected by, the evils declare they have no existence, and a very large number who admit their existence are indifferent to them and will render no assistance. Those who from personal interest or motives of philanthropy are ready to assist in the reform have to overcome, first of all. the inertia that always hinders all progress, and. secondly, to meet those who are interested In malntanilng existing evils. Before entering into the merits of the question it is best for us to examine a little of its elements. The first question is, "What Is a bank of loan and discount?" As I understand it. It is a corporation having a certain amount of capital of its own and also of capital deposited In it by other persons in the community in which it is located which those persons do not need to use on that day, both of wldch sums the bank loans from day to day to those who do need It on that day, but do not need It all the year around. In every kind of business some bank becomes a limited partner In the business. The pro.lt of the business which the bank receives is In the form of the interest charged on the loans and discounts made by the bank to the business man. Banks can no more be taken out of our civilzation to-day than the heart and blood can be taken out of the human body and have it still live. Currency notes have come to be of very great importance in banking. What Is a currency note? Legally, or in form, it is nothing different from i-n ordinary demand note given by an individual other than that custom compels the bank to deliver coin for the note instantly upon demand, as the law requires every person, corporate or tole, to deliver coin in payment of every debt if requested to do so. The essential character of currency notes will be illustrated by a statement of the banking and currency operations of a canny Scotchman named George Smith, who came to this country In settling in Chicago. Being unable to get a charter for his bank in Illinois, he secured from Wisconsin a charter for the "Wisconsin Marino and Fire Insurance Company" on Feb. 2S, 1S20. He issued the demand notes of this Insurance company, printed in the form ot bank currency notes, promising on ihAr face a coin draft on New York at any time upor. the delivery of these notes to a certuhi hanker, either in Chicago, St. lx)uis, Detroit. Buffalo or Galena, to the amount of the notes so delivered. In IS t there was an average amount of about $1S0.0C0 of these notes in circulation, and they reached ?s high as $1,470,235. Of course. Smith got full interest on all these 'notes payable' of his own. instead of paying interest on them. He returned to Great Britain about 1MJU with his wealth, estimated at about Jlo.OoO.tt'O. and was known in London as Chicago Smith. THE CASE OF SMITH. The question arises as to exactly what was tho operation of George Smith when he discounted a note for one of his customers. They delivered their on notes to him, or the note of some other man with their indorsement, in exchange for the "demand note" of George Smith. Of course George Smith made a profit on these notes, while they were in circulation, to the full amount of whatever Interest he charge-d on the paper he took from his customers. By keeping a small deposit of 'gold in New York and borrowing what be needed upon whatever securities tie originally had, probably to a very small amount, and increasing tho security as hts profits increased his capital, he. easily paid mese notes in gold. Never was one f his notes discredited in New York. "Gc-orgo Smith's money" was the only really sound money that existed unquestioned in the Northwest for many ye'ars. What Smith did is precisely what a bank doeu in issuing its circulating notes. Whatever money banks can make in interest on such notes while in circulation reduces the interest necessary for them to charge their customers in order to pay good dividends on their stock. Before InoO all the paper money in circulation was issued by statu banks. It Is very curious, and Interesting as well, to see how widely It varied in different sections In proiortlon to the loans and discounts and the deposits of banks, and also to the specie held by them its capital btock and its deposits. Remember that a currency note paid out by a tank Is Identical, to the man who owns It. to a certificate of deposit to him or a certified check, so that the potential deposits in a bank are always its nominal deposits, plus tno currency notes it actually

has in circulation. Furthermore, the percentage that the bank can loan Its funds below what It would be able to loan them had It no right to issue its currency note is exactly the percentage that the currency noto bears to such notes, plus Its deposits. In the period before liGO the circulation In tho following agricultural States was as follows: Indiana. fi3 per cent, to Its loans and discounts to-day 15 per cent. ;0ermont, 54 per cent. to-day per cent.; Virginia. 51 per cent. to-day old Virginia 12 per cent.; North Carolina. .V per cent. to-day 11 per cent.; Georgia, J) per cent. to-day 13 per cent. Of course the amount of currency that banks can issue in cities where it is immediately returned to them 1 very small, and In large manufacturing cities it Is comparatively small, as the business In those States is done by checks. In New York city in 10 the circulation was only 8 per cent, of Its loans and discounts and to-day 7 per cent. In the State of Hhod Island. 19 per cent. to-day 21 per cent., and in the State of Massachusetts 25 per cent. to-day VJ per cent. The circulation per capita Is also very Interesting. The currency per capita before 100 In Vermont was $12.V): under the national system to-day it Is UQ.2A. In Virginia the circulation before 1800 was $10.67; in old Virginia to-day It is only $1.11. In North Carolina the circulation before lJO was $5.79. and to-day it Is but 41 cents. In Georgia before the war it was $;.33. and to-day it is 55 cents. In New York city It was $10.32 before the war, and to-day it is $13.05. In Rhode Island, before the war. It was $;:i.62. and to-day It Is -'1.0S. In Massachusetts it was $.1.56 before the war. and to-day it is -$3.0T. If justice was done the currency per capita in agricultural States would be as high to-day as before 1MW. ADVANTAGE OF BANK CURRENCY. It must be remembered that if a bank should decline to keep on deposit any part of its loans and discounts and issuo currency instead, it would make the same number of dollars on its loans with the same safety that it does under the practice of to-day, for the reason that no checks or drafts could then be made uiou the banks. It would have to redeem,, whea presented, its currency notes precisely as it now redeems checks and drafts made upon it that the currency notes take the place of. -The changes that have been made, in the advantages the people of the country derived irom "tne issuing of oaiiKing currency irom thoe tiore Ivy, and the present condition ot banns as to thtir currency as compared with the banks m Europe, issued with equal satcty, is nttia realized. Tne treat aud only advantage that tne people derived under the national system oiigiually was in making a market fdk- the bonds or the government to tome extent, but this even is disputed by some of our best inlanders. The &urc and tangible advantages arc: First Making the payment of currency notes sure m tne caso ot insolvent baiiKs, w hich, of course, is of very great moment, but this can bo as surely done la a, better way. ' - Second The official examination of the bank by competent persons, whlth has been of greater advantage than is generally realized. While the examinations do not prevent all bank allures, it is reasonable to suppose that they are few as compared witn what they would bo were they subjected to no official examinations. Third The requirement that a proper reserve shall be kept,-priortioned to the "Individual deposits in tne bank. While it is a tact tn&t reserves would be kept by all prudent bankers were It not legally required, it Is still equally true that the legal requirements exercise a very salutary influence in the conservative management of banks, and hero the advantage of the national sjstem ends. " Of course, all these feature's must be preserved. The disadvantages of the national bystem. as It now exists, are enormous, but unless Its hardships under certain cirepmstancea can be allevlated, its preservaticu cannot be hoped for. The banks of this country, with a proper system of Issuing currency, would make on their currency the average rate of Interest charged in the country, which is probably 6 per cent. On the thousand millions of paper now in circulation there would he $',mW,tnnj In total moneys now needlessly taken out of the customers of the banks and finally out of the pockets of the people in higher price for all the things they buy' than would be necessary to charge on money loaned. tu pay the same dividends on bank stock, were our currency issuel us it is in Europe, namely, against the assets of the bank. Requiring all banks to invest a very largo part of their capital, and sometimes the whole of it. in bonds, in order to secure circulation, works great . hardships and injustice. The high-interest localities of the South and West are Justified in their complaint of the national-banking law. Banks in that locality have an equitable right to make a profit on the currency issued in their localities equal to the interest charged u loans and discounts; that Is to say. the profits on circulation in 0-per-cent, localities should be one-half more, than in 4-percent, localities, In S-pcr-cent. localities twice as much, and in lu-per-cent localities twice and a half as much, while the exact reverse Is the fact. CURRENCY FAMINE PANJCS. Again, there li constantly and needlessly locked up In the United States treasury millions of currency, with other millions upon millions of currency netdlessly congested In the city of New York and other cities. Panics are also arising from a currency famine which is wholly inexcusable, and would be Impossible under a proper system of issuing currency. Panics from the fear of depreciation in coin are also a source of hardship and enormous loss entirely Inexcusable, Tho law also makes banks bond speculators as well as attending to the legitimate business of a bank. Jn doing justice to the owners and beneficiaries of the bank, mostly widows and orphans, who own the savings banks, who again own the stock's in theso banks, they sell their bonds and retire their currency when the credit of the government Is good and bonds are high and the country needs the most currency, and buy bonds when bonds are low because the credit of the country is ruined, and Issue currency when the country need the least currency. The national bank currency in 18&1. when bonus paid 3 if cent. Interest on their price, was $212.000 000. In 1890. when bonds paid 2.15 per cent. Interest on their price, the banks sold their bonds and reduced their currency to $12i.000.000. In 1SO0, when the . United States' bonds at their price paid an income of 2-4 per cent, the New York national banks had in circulation only $3.5.j) In currency. On Oct. 2. 13. when londs were Fold at a price paying 34 per cent. Interest, they increased "their currency to $15,S0o,0iu. Again, profits that can be made on currency by banks in high-interest communi-, ties and in communities where Interest is low show the grinding injustice of the law as It now stands. In 1S92 I secured from the actuary of the treasury of he United States, so that tho tigrures cannot be rightfully questioned, and again, in 1K5. the figures which I will nowpresent to you. as to the profits that could be made by banks in taking out currency under various conditions. Bonds are constantly varying In price alove or below par and. therefore, the rrofit on currency varies widely. Buying bonds la 1W. when ihe country was in a normal condition and the price of United States bonds normal, the profits on currency taken out by a bank, provided it was all in circulation In a 4 per cent, locality, was .512 per cent. In a 6 per eent. locality. .520 it cent.; in an R per rent, locality, only and there would be an actual loss in a 10 per cent. locality of 1.23 per cent. . . . Using tho 4 per cent, thirty-year bonds which the government sold at 101.5 because of a ruined credit. In a 4 per cent, locality the banks could make 2.0G per cent.: In a per cent, locality. 1.71 per tent.: in nn S per cent, locality. 1.35; in a 10 per cent, locality. &8 But using these same lnds lit their normal price In days of our country' prosperity, paying un income of 2'i per cent, to the purchaser viz.: at 130.K7. the profit In a 4 per cent, locality would only le .52 per cent.: in a fi per cent, locality there would be an actual loss of .22 per cent.: In an 8 per cent locality, a loss f 1. and In a 10 pr cent. locality a loss of l.tci per cent. CURRENCY ISSUE ON BONDS. Whenever these things are called to the attention of some bankers they smilingly reply: "If you will repeal all taxes on circulation and allow us to Issue currency up to the par value of our bonds we w ill give the people all the currency they want." This reply Is all too frequent. In fact, I have had no other, and usually get none at all. But the injustice of oiWy doing what is suggested will be shown by the following statement of results furnished by the actuary of the treasury: Repeal the tax Imposed and allow the issue of currency to the par of bonds and then the same 4 per eent. bonds mentioned, at their normal price, paying Z? p-r cent. Income on their price, the profits on the currency Issued In a 4 per cent. locality would be 1.80 per cent.; in a 6 per cent, locality, 1.25 per cent.; in an 8 per cent, locality. .055 xer cent., and in a 10 per cent, locality, only .273 per cent. This shows that the profit to the banks on currency issued In a 4 per cent, locality, when all of It was In circulation, would be .41 per cent more than in a v per cent, locality: 174.35 per cent., more than In an 8 per cent, locality, and G.555.55 r-er cent, more than in a 10 per cent, legality. Do these cond t ons ervc to tCuatiuuetl on 'ihlrd l'agr.)

t