Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1858-01-08

SPEECH OF HON j. COLLAMER.
oN THE
TREASURY NOTE BILL:


it is not likely that the remarks which may
make will operate on any mans mind but my
own; yet, perhaps. il is due TO myself 70 ex-
plain the reasons for the vote shall give. As
! differ from the views expressed by many Of
the gentlemen on this side of the Chamber,
feel the more bound very briefly 90 state the
views entertain
In the first place, | cannot regard the law
Of 1917, which is cited as a precedent for the
bill before us, as furnishing any precedent at
ALL This bill seems 20 have been carefully
copied after that law, with very few varia-
tions. say no precedent is to be found in
that law for this bill That was a war meas
urc. II was adopted while we were at war
with Mexico Il was SO adopted as to have
effect only while the war continued | need
say no more 20 show that that can furnish no
precedent for measure like this in time of
peace.
In tho next place, if that law is to be taken
as a precedent. it should be taken as a whole
The act Of 1917 authorized the borrowing of
S23 600, 600 as a loan, and the provision for
Treasury notes was interviewer with the 9TH
or provisions for a reason then given, and
which | well remember / think it was stat
ed by Mr.. Cave johnson. Of Tennessee, who
was lhcu Nhaiilhah OF inc Nuihuul'cc ga
Ways and Means, that II you advertised tor
a loan you would get bids only from great
money propretots- on such terms as they
might choose to oter' and the ordinary peo-
pie would get nothing but if you permitted
the Government 60 issue Treasury notes bear
ing a moderate interest, thcy would be taken
by the people who might have $50, or 500,
or 5000 which they were willing TO deposit
in this savings bank and thus aid their coun-
try and benefit themselves The Treasury
note system was shaped with view Of cnab-
ling the common people TO get hold OF por-
ton of the loan; for it was provided in the
law that whoever held Treasury notes might
fund them in the general loan. That was the
reason given at the time for allowing these
notes TO be issued How far il practically
operated it is not for me 90 say. but | know
it did operate TO some extent.
say. then, that that law furnishes no prec-
dent for this, because the object now is avow-
edlv to issue these Treasury notes to circu-
late from hand to hand. and they arc to be
put at q very small rate Of interest for that
purpose 7 ann sensible that some gentlemen
supnosc-and the Senator from Rhode Island
seems to have that vicw-that these notes,
especially the larger ones, will be valuable
for rcmittanccs through the mails, because
the bill provides that they shall issue payable
TO some person or order, and be by him in
dorsed Clearly. the man TO whom the note
is first made PAYABLE may, instead Of indors-
/ ing it in blank. indorso it to A B. or order.
and A B may indorse it TO G d, or order, and
so on until it comes TO the man who presents
4 IT at the Treasury. Iva that way, to be sure
If the payee indorses it to \ b, or order, he
may transmit it through the mail to will
safety, because, If II be stolen from the mail
nobody can obtain the money except B, OF
somebody to whom he has ordered it to be
paid. If an Endorsement is forged, the draw
cr pays at his own hazard, and will alter
wards have to pay the true owner. DO gen
tlemen really intend that this Government OF
its officers, shall be put in this condition
/ that they shall take up the notes at their owr
! hazard and if it afterwards is ascertaned
I that there was forged Endorsement, be com
| PEELED 20 pay the true owner: Is It intended
/ to take such burden ON us? lpresnme not
/ The provision OF the bill is that the notes
shall be payable at the Treasury to the Law
/ iul holder; but you may strike out the
I word "lawtul, and II will mean the sam,
thing; for man IS not the owner OF not'
which is payable 20 a certain person or order
unless it has been indorsed to hm' In truth
there is no way to secure the Government II
the payment of these notes with safety, /
they arc to 20 into circulation unless by
/ striking out the provision that they are to be
nude payable to a particular person or or
der, and make them payable to bearer. 1t Is
possible that they may all be made payable tC
some clerk in the Treasury, who will put hi'
name on the back of each one IN blank, anC
after that they would pass by delivery, an'
could not afterwards receive restricted IN
dorsemont To do that, however, IS to 60
through forms to no practical purpose. Nol
may as well make the notes payable, in Tho
first instance, to bearer, as to go through tha
form Of Endorsement.
Probably that provision of the bill will b'
stricken OUT but how came 1t here: Un
doubtedly it is copied from the statute o
1917. and it was inserted there after the sub
Treasury system was adopted in 1916. Th'
object was, that the Treasury notes shoul'
not be regarded as a circulating medium, bu
as bills payable to order and indorsed by th
payec, and to be used in that way in order t.
escape the charge of having in any way over
ridden the provisions Of the sub-Treasur
system. You may possibly preserve the form
now, but you will have to destroy the life o
the form If won make the notes Dayable 4