Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1837-12-26
AMES j. GRAVES, EDITOR.
SPEECH OF r. BARNWELL RHETT,
OF SOUTH CAROLINA,
h the Bill authorizing an issue Of Treas,
ury Notes.

b ury Notes.
ouse Of Representatives, Sept. 90, 1897
Ms. CHAIRMAN:--I shall follow the sur
leston made by the chairman of tht
ommittee of Ways and Means, and con
der all the bills upon your table as con.
.jtuing one system, although contained
different bills. To the bill authorizing
h Treasurer TO issue Treasury notes.
Nall propose, as amendments. that these
mss shall bear no interest; and that the
kecretary be authorized 10 issue another
ind of paper-bWS receiraJle in pagnent
h he public dues. When the bill reruIa-
no the repositories Of The public money
Mi come up for consideration, shall al
IOuoye the amendment send to the Chair.
Irvding for gradual dissolution of all
cnnsction between the Government and
he banks; dispensing entirely, in the
kOwse of three years, with the use or re-.
option of their paper; and using them on
for the safe keeping of the public mon
Nv BY special deposltes. BY these amend
kents, the Government will have the on.
ion of issuing either Treasury notes bear
Inc no interest, or bills receivable IN pay
n,snl of the public Dues the Government
bill be separated from The banks; the
public moneys be kept in the banks on
Especial deposite; and the revenue be col
Aected either in Government paper or spe-
lie There is but one other alternative
before the committee to this system, in
this shape, or by other notifications. and
That is the project OF The gentleman from
Virginia, (Mr. Garland,) to re-unite the
government to the SAFE banks, receive
their paper in payment of the public dues,
and make them, as heretofore, the gener-
Al repositories of the money of the cuun-
trg. These are the two projects for con-
liberation
II, sir, we are to have Treasury notes,
prefer that they should not bear iatereS,.
IN issuing these notes, 1t is not our object
simply to raise money, or TO pay debts;
but, IN the paralytic state of the country,
we want medium in which the revenues
bf the country can be easily collected and
domestic exchanges be carried on without
Embarrassment to the banks. If these
nuies bear interest, their circulation will
Be impeded, if not stopped entirely; they
will be retained on hand as investments.
Nor, sir, do think the objection, that if
they do not bear interest they will fall be-
low par, is we'll founded. Although they
can not be employed like specie in paying
debts abroad, they will answer function
which specie cannot perform, in carrying
on the exchanges Of the country. This
popularity Of usefulness, IN the present
situation of the country, will more than
eounterbaance aayother advantag eswhich
either bank notes or specie may possess
over them as a medium OF circulation.
But, sir, prefer, to Treasury notes in
any shape, the medium | propose-biils
receivable in payment Of the public dues
A Treasury note is promise 10 pay, for
The redemption of which specie must be
collected and reserved. A bill receivable
in payment Of the public dues is merely a
promise to receive, and has its promise
fulfilled when received; the one requires
tho abstraction of a large amount Of spe-
cle from circulation-the other not only
abstracts no specie from circulation. but
will actually be equivalent to an addition
a supply of specie to the amount of the
issue. The one may bring the Govern
ment in collision with the banks in the
0eIeate position in which they will be
paced when they resume specie payments
the other will give the Government the
means Of collecting its revenue without
enTenching in the least upon the resour-
ces Of the banks. The one is intended as
aNnPorary expedient; it is a debt, and
me debt must soon be paid; the other is
mercy an instrument Of collection, and
can De Kept out forever, and be expanded
OF contracted as the wants of the country
tof Inc purposes of exchange and collec-
Won may require. For these reasons, |
prefer to Treasury notes, bills receivable
payment of the public dues.
But Mr.. Chairman, the same objection
vii be urged to this kind Of paper which
has been urged against Treasury notes
not bearing Interestingly will fall below
par. Their appreciation or depreciation
vll entirely depend upon the great prin-
elple Of supply and demand If there are
more bills in circulation than are needed
ior the purposes Of exchange and the col
lection ofthe revenue, they will depreciate;
nless, they will rise in value. This kind
o. paper is not an untried experiment,
and new in the history of finance. 1t has
been tried and used with success in far
worse times, and by far feebler govern
ments than our own. The very first pa
Per money issued i'll America was Of this
and. Upon the failure Of the first cxpe-
dltlon against Canada in 1890, the Pro-
vince Of Massachusetts, laid tax upon the
people to meet the expenses; but as the
soldiers were impatient, and would not
gWah a