The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-23
TREASURY NOTE BILL.
SPEECH OF MR.. BENTON,
. on MIssouR1.
In SENATE. Monday. Sept. Is, 1887.

iisCh ia uiiS ,utDdtts udu ~ uOt Dctu loI knc
misapprehensions which seem to peryade
the minds Of Senators as to the character Of
the bill. II is called by some paper-money
bill, and, by others, bill to terminate new
national debt. These are serious imputations,
and require TO be answered, not by declama-
ton and recrimination, but by facts and rea-
sons, addressed to the candor, and TO the in
telligence, Of an enlightened and patriotic
community.
] dissent from the impatations on the cha
racter OF the bill. maintain that il is neither
a paper money-bill, nor bill TO lay the foun-
dation for new national debt and will brief
ly give my reasons for believing as do on
both points. 4.
There are certainly two classes Of Trea-
sury notes--one for investment, and one for
circulation; and both classes are known to
our laws, and possess distinctive features
which define their respective characters, and
confne them to their respective uses.
The notes for investment bear an interest
sufficient to induce capitalists to exchange
gold and silver for them, and to lay them by
as productive fund. This is their distinctive
feature, but not the only one they possess
other subsidiary qualities such as transfera-
biIity only by Endorsement al fixed
time--not re-issuable--nor Of small u3enomi-
nation--and to be cancelled when paid
Notes. of this class are in fact loan notes
notes to raise loans on by selling them for
hard money-either Immediately by the Sc
cretary Of the Treasury, or, secondarily, by
the creditor of the Government to whom they
have been paid. In word, they possess all
fhx. IL
bid and impede CIRCULATION. The act Of 1912
authorized an issue Of notes Of this descrip-
ton. They bore five and two-fifths per cent.
interest, with an express clause that the Sc
cretary Of the Treasury might raise money
upon them by loan. j presume there are Sc
nators present who were members Of the
House Of Representatives in lSl2-who gave
the sanction Of their appreciation to the Trea-
snry note law Of that year, and who would be
very unwilling to hear the epithets applied TO
that law which are lavished upon this bill,
which is copied from it.
The Treasury notes for currency are dis
tinguished by features and qualities, the re-
verse of those which have been mentioned
They bear little or no interest. They are
payable to bearer transferable by delivery
-re-issnable--of low denominations-and
frequently re-imbursable at the pleasure of the
Government. They are, in fact, paper mo-
ney, and possess all the qualities which for
bid investment, and invite to circulation. The
Treasury notes Of 1915 were Of that charac-
ter, except for the optional clause to enable
the holder to fund them at the interest which
commanded loans--at seven per cent.
These are the distinctive features of the
tive classes Of notes. Now try the commit
tees bill by the test of these qualities. 1t will
be found that the notes which it authorizes
belong to the first named class that they are
to bear an interest," which may be six pei
cent. that they are transferable only by
endorsement-tha they are not reasonable
that they are to be paid at day certain to
wit, within one year-that they are not to be
issued of less denomination than one hundred
dollars--are to be cancelled when taken up
and that the Secretary Of the Treasury is
expressly authorized to raise money upon
them by loaning them.
These are the features and qualities Of the
notes to be issued, and they define and fix
their character as notes to raise loans, and to
be laid by as investments, and not as notes for
currency, to be pushed into circulation by the
power Of the Government, and to add to the
curse of the day by increasing the quantity of
inconvertible paper money.
The execution Of the act, and especially
the cardinal feature of the quantum Of inte-
rest, is left to the President and the Secreta-
ry Of the Treasury. Ipresume it will be ex-
ecuted as law to borrow money; and in that
point of view the interest was left open, under
a maximum limit, as is proper to be done in all
propositions for loans. Bids may be invited
by advertisement; the competition of lenders
may fix the interest; capitalists may fix it by
competition, though nominally left to the dis
cretion Of the President and Secretary /; and
at whatever rate it is thus fxed-at whatever
rate a loan of gold and silver is commanded
at that rate the whole issue, made at any one
time, ought to go. There should not be two
rates Of interest; high one for the indepen-
dent and opulent capitalist, and low one for
the helpless and necessitous public creditor.
This is my opinion of the character of these
Treasury notes, and of the mode of using
them | cannot doubt but that lenders will
present themselves, and that the whole ten
millions may be borrowed in gold and silver
Just as fast as the Government needs it. That
opinion is formed upon data-upon the great
amount of specie now in the country-its un-
productiveness to its present holders, and the
facility with which large amounts Of specie
were borrowed Immediately after the bank
suspension, and the commercial revulsions of
1919 The specie in the United States can
not be less than it was six months ago, to wit,
eighty millions Of dollars; for it is shown by
the custom-house reports and other data, that,
notwithstanding the efforts to ship it TO En-
rope, the imports and exports are about even
during that time; and that, taking the whole
fiscal year together, the imports now exceed
the exports by nearly four millions Of dollars ;
and that near nine hundred thousand dollars
in gold have been coined in the frs, three
quarters Of the present calendar year. The