President Walker of the Mass. Inst. of Technology:

The purchase clause of the Sherman act should at once be repealed. This will bring our legal-tenders out from hiding and our gold back from Europe. Better still, it will bring business confidence back from Bedlam, and will prepare the way for a safe and healthful expansion of productions and trade.

The repeal of the purchase clause of the act of 1890 should be without delay and without conditions; but it should at once be followed up by legislation providing for a well founded system of national banks of issue, having an ample and secure basis of circulation.

It would do much to promote the immediate interests of the country if it were to be authoritatively announced that tariff legislation prior to the regular session of 1894 will be strictly confined to an extension of the free list, no changes whatever being made in rates upon articles which are to remain duitiable. FRANCIS A. WALKER.

Professor Folwell of the Univ. of Minnesota:

The first and immediate action by Congress, upon its organization in August, 1893, should be to suspend the operation of the so-called Sherman act, without prejudice, so far s possible, to conflicting interests.

Later action should be directed toward two main ends. The first end is international bimetallism, at a coining rate to be agreed upon at the time the system may go into effect, with provision for readjustment of ratio at stated periods thereafter.

The second end is to support our existing currency system, so that any dollar, whether of coin or paper, shall continue to be as good as every other dollar.

No suggestion is here offered as to legislation appropriate to the first end As to the second, the following measures seem to the writer to be most likely to insure its attainment:

1. Enact the "Windom bill" in its substance. 2. Require customs duties to be paid in gold.

3. Make further provision, if necessary, for the issue of b nds to be exchanged for gold, should other means fail to keep the Treasury supplied.

The payment of the greenback debt and the perpetuation of the national banking system are matters which may or may not enter into the legislation toward the two ends above mentioned. The monetary system must continue to be national. Monetary legislation should always be conservative, because old principles, when applied to new circumstances, may not yield expected results.

WILLIAM W. FOLWELL.

Professor Taussig of Harvard University: The Sherman act should be repealed,-so much seems to be agreed on. That unlucky measure is bad in principle and dangerous in practice. It makes the growth of the currency depend not on any ascertained need, but on

the accident of the price of the American product of silver. It provides for a monthly issue which is probably excessive, and has certainly proved dangerous. The extent to which it has caused the financial disturbance of the last few months has been exaggerated; but it was beyond question a main cause of the feeling of helpless distrust, which is the first occasion of all such panicky experiences.

What should be put in its place? For one thing, it will probably be best for the moment to leave the present volume of Treasury notes and silver certificates unchanged. To reduce their quantity or substitute for them other sorts of currency would bring political and financial complications which it is not necessary now to invite. As they stand, with further increase stopped, they can be kept convertible into gold without serious difficulty.

For the immediate future we ought, so to speak, to turn the corner; give up the mechanical process of issuing currency on fixed silver purchases, and adopt some method by which the growth of the money supply is made to correspond to the fluctuating needs of the community. It would perhaps be possible for a sober and conservative community to attain this end by direct government issues, but the dangers of such a policy in the United States have been vividly illustrated by the history of the last twenty years. The better plan is the old one approved by experience: bank-note issue. Congress should provide a system under which banks could freely issue notes convertible into legal tender (ultimately, therefore, into gold) beyond a shadow of a question. The best plan is to enlarge the base on which the national bank notes rest, and so enable them ultimately to attain a dominant place in our every-day paper currency. The alternative is to permit the issue of State bank notes, under conditions insuring moderation and convertibility; the former plan entails political difficulties, the latter constitutional difficulties. The brave policy is to meet the political opposition and to courageously put before the people the question whether they wish to have a national bank money which shall be sound and unquest oned, shall present no temptation to currency tinkering, and shall grow without trammels as the needs of the community spontaneously call for increase.

F. W. TAUssig.

Chancellor Canfield, University of Nebraska: All action must be experimental. At present there is no doubt in my own mind of the wisdom and desirability of repealing the purchasing clause of the Sherman act. I think this might safely be accomplished by re-coinage and practical free coinage of silver, at, say, twenty to one. Then wait awhile, to study results.

Unquestionably gold has appreciated during the past ten years-just how much can scarcely be determined. Unquestionably, also, part of the possible depreciation of silver is artificial-just how much can scarcely be deter mined. Holding gold as the standard-the two-foot rule

-the measure for values, try the two together again; but always with actual coinage of silver-not with "bullion notes" or "silver certificates."

Advancing civilization constantly eliminates the need and use of coin-money-"cash"-and even of governmental a d other notes; checks, bills of exchange, drafts, postal notes and orders, accounts, credits and the many other means by which the title to money is transferred, are rapidly increasing. I do not believe there is a real"efficient "-demand for silver in any great quantity among the people at large. They prefer something more convenient, and are fast becoming accustomed to a better "currency."

JAMES H. CANFIELD.

Professor Seligman of Columbia College:

It is not easy to say in a few lines exactly what I think Congress ought to do. But my general view of the situatio may be summed up as follows: In the first place, Congress ought to repeal unconditionally the silver law of 1890. This, however, will settle neither the silver nor the currency question. What we need above all things is greater elasticity in the currency medium The ideal method of obtaining this would, of course, be through a regenerated system of national banks, with an issue based on other securities than those of the national government. This, however, will probably not be accepted by Congress. On the other hand, the repeal of the 10 per cent. tax on State bank issues would be worse than mischievous. There remains, therefore, only the issues of governmental paper, which should not be fiat money, but which should be based on a covering of, say, one-third in gold and silver, very much in the same way as our greenbacks are based on the gold reserve. Congress should pass a law permitting the Secretary of the Treasury to purchase at his discretion, within certain limits, gold and silver bullion, and to issue three times the amount of gold notes and silver notes. This would give to the country the annual addition to its currency that might be called for. And as long as the notes remained convertible and were amply protected by the bullion reserve, there could be no depreciation. The Secretary could preserve the parity o the two metals by discontinuing or increasing, as the case might be, the purchase of the one or the other metals as reserve. This would, I confess, involve a great responsibility upon the Secretary and an increased interference of the Treasury in mercantile affairs. But in default of a national bank, which is an impossibility, and of a system of national bank issues, which seems unli.ely, there is no alternative. It is better to have elasticity in one direction, at least, than to have no elasticity at all, which would be the result of the simple repeal of the Sherman act.

As regards the silver question, the above plan would, at least, provide for the purchase of a certain amount of silver bullion yearly. Further than that, it would be unwise to go without an international agreement. If any such agreement is at all possible, the repeal of the Sherman act will be the surest way of bringing about the ultimate result. But we need more than mere negation.

EDWIN R. A. SELIGMAN.

Professor Adams, Michigan University:

It is much easier to say what the extra session of Congress ought not to do about currency than to suggest a plan which will meet the demands of the present exigency and at the same time lead to a sound monetary policy. This Congress ought not to repeal the ten per cent, tax on the

note issues of State banks. I appreciate fully the changes which have taken place since 1840 and the argument in favor of free banking based upon those changes; but I have no confidence in State banks of issue, nor can I avoid the conclusion that should they again be established State legislatures will again endeavor to build up local industries by providing lavishly for "local capital." Commerce is national, and the instrument of commerce should be national also. Again, Congress ought not at present to assume the burden of the world's silver. Whatever the ultimate results of such a policy, its immediate effect would be wide-spread commercial disaster. Nor, on the other hand, should the extra session of Congress formally recognize the universal dominion of the gold standard. The immediate effect of this might be advantageous to all but the silver mining interest; but the universal abandonment of silver either as standard money or as the basis of issues, would inaugurate a period of gradual and persistent contraction. This, of course, means ruin. What, then, ought Congress to do? Answering the question categorically, I would say: First, in view of the present exigency, Congress ought to repeal the silver purchase clause. Second, holding in mind the future, Congress ought to create a commission which should take into consideration the establishment of a general banking system under the control of Federal law. Third, having done this, Congress ought to adjourn.

HENRY C. ADAMS.

Dr. Sherwood of the Johns Hopkins University:

It seems clear to me that those who look for a radical cure of existing financial difficulties from any legislation by Congress will be severely disappointed. The primary causes of the present trouble are not monetary merely, but industrial; not national merely, but international. If any remedy is possible in consciously adopted policies, no remedy but a general industrial reform, entered into by all the important nations of the world, will fully avail. Congress has one plain duty, however, the performance of which will remove some superficial, but painful, evils. The Sherman act never has served any rational end. Either free coinage" of silver or gold monometallism would be preferable to the present law. The repeal of the Sherman act would acco plish two things. would show that the present financial disturbances are not due solely to the operation of this act-in other words, that the Congress of the United States is not the omnipo tent and final arbiter of the financial destinies of the world; and it would give bimetallists a better opportunity to press their policy upon the consideration of the Brussels Monetary Conference and of the world at large. Congress should repeal the Sherman act, and should attempt no further legislation during its extra session. SIDNEY SHERWOOD.

It

Chancellor Rogers of the Northwestern University:

The present financial condition of the country should make it evident to members of Congress that it is absolutely necessary to repeal at once the Sherman act. It is a measure that ought never to have been passed, and the sooner it is repealed the better. Let Congress repeal it unconditionally. After the repeal is accomplished, it can then consider what further action needs to be taken. This country cannot do business with a dishonest dollar. We do not want and cannot stand free coinage of silver. We do not want a double standard unless the siver dollar can be maintained at a parity with the gold dollar. Bimet

allism is well; but this country cannot afford to champion it if the rest of the world is going to repudiate it. HENRY WADE ROGERS. Professor Macy of Iowa College:

You ask me what I think Congress ought to do about silver and the coinage in general. I believe that Congress ought to repeal the Sherman law. It must now be evident to all that the law has not accomplished what was expected of it. The price of silver has fallen notwithstanding the increased purchases It is evident to me that the United States acting alone cannot do anything which would permanently enhance the price of silver. If we should adopt free coinage and displace all our gold with silver, the probabilities are that the price of silver as compared with gold would not be greatly increased. While we were in the act of selling our gold and buying silve, there would doubtless be a temporary rise in the price of silver. But as soon as the change were completed there would be a reaction in the price of silver. After the United States had nce become adjusted to the silver standard it would make no larger demand for the silver of the mine than it has been making since 1878. The Sherman law was passed as a substitute for free coinage. It has undoubtedly been less disastrous than would have been a free-coinage law. Under it we have been saved from the suffering which would result from money of different values. But it is evident that we cannot much longer continue to add to our currency money based upon silver values without being compelled to use silver values in the settlement of accounts.

It is probable that the mere fact that the United States is storing up silver bullion is itself having a depressing effect upon the price of silver. The idea prevails that after a time the government is likely to market this silver. The natural effect of a store of goods which may be thrown on the market is to depress the price of the goods. In repealing the Sherman law we do not recede from the policy of making use of as large an amount of silver money as is consistent with uniformity in the value of the dollar. I believe the United States ought to continue the policy of trying to induce other nations to join in a united effort to maintain a parity of gold and silver values. J. MACY.

Professor Commons of the Indiana State University:

Let

Repeal both the silver purchase and the silver redemption clauses of the Sherman bill. Make all paper money -greenbacks, silver certificates and Treasury notes-redeemable in gold at the present standard or in silver bullion at its market value. Gold will then lose its significance. All of it might go to Europe. We should still be on a gold basis, without the gold. Then establish an elastic currency on a paper basis redeemable as a ove. Appoint a National Monetary Commission representing different interests and including monetary experts. the commission establish a price barometer to determine the fluctuations of general prices. When prices fall let them expand the currency, when prices rise let them contract. To expand they can buy silver bullion and issue legal tender bullion notes. To contract they can sell bullion for the notes and retire the latter. To prevent speculation, let the commission issue notes to a limited extent without corresponding purchases of bullion. Notes could be deposited on call with designated banks on approved securities of public and railway bonds, the government sharing in the profits. Deposits could be withdrawn when the commission wishes to contract. Deposits could be made with New York banks whenever a money panic sends interest up to, say, 8 per cent.

A plan like this enables our government to act independently of Europe; to establish bimetallism on a flexible instead of a fixed ratio; to secure a thoroughly elastic currency; to persuade other debtor nations ultimately to join us in an international commission. JOHN R. COMMONS.

Professor Judson of the Chicago University: The Sherman act should be repealed unconditionally, and without delay. It is time to abandon the experiment of legislating against the laws of nature. The attempt to maintain a fixed ratio between the values of gold and silver by act of Congress is merely a new edition of the Pope's bull against the comet.

The national faith is virtually pledged to redeem all varieties of paper currency in gold, and the apprehension arising from the possibility of any other course is sufficient of itself to arrest the operations of finance throughout the country. This apprehension can be removed only by an explicit and frank adoption of the single gold standard. If the present gold reserve is inadequate for that purpose, a sufficient addition should be made by the sale of gold bonds. Better increase the national d bt than wipe out enormous values and destroy business from Maine to California.

HARRY PRATT JUDSON,

Professor Mayo-Smith of Columbia College: The present situation shows that bimetallism is impossible. It shows, also, that free coinage of silver would bring about a most disastrous panic. The present stringency ought to convince business men that credit is more important than money. The lesson has been, that we want in this country not merely a standard, but the highest standard-i. e., one that will command the utmost confidence throughout all the world, so that whatever happens, there shall not be the slightest shadow of a doubt as to the credit and financial standing of the United States. In comparison with the enormous business interests involved in this, the question of the marketing of our silver product, of the gradual appreciation of gold and even of loss to the debtor class by such appreciation of the standard of deferred payments, become comparatively unimportant.

Distracted by the cries of those who thought themselves possible victims of monometallism, we have, perhaps, paid too little attention to the preservation of that elusive vital force which is the heart of all monetary systems, confidence. The present experience should result not only in the repeal, of the Sherman bill, but in the remodeling of the national banking system, so as to provide a uniform national currency, safe and, at the same time, elastic. The concessions to the mistakes of the past should consist merely in the permanent retention of the silver in the possession of the government, to be used for subsidiary coins, with limited legal tender power, and the retention of the present treasury notes as part of our circulating medium. The first is simply to prevent the entire demoralization of the market for silver; the second is to meet the cry that the government is contracting the currency. Both will be, perhaps, monuments to future generations of the weakness of popular government, but they may in time convey useful lessons. The elements of strength in our financial system are (as history proves) the ability of the federal government to maintain the gold standard when it chooses, and the national banking system. Our safety and prosperity lie in emphatic reiteration of the national choice in regard to the maintenance of the standard of value and the careful conservation of a national bank-note currency.

KICHMOND MAYO-SMITH.