, 1863-01-30

Remarks Of I. N. Arnold and owen
: Lovejoy.~

The House being in Committee ot the
Whole Oh the question Of taxing the issues
Of banks: =
Mr. Arnold said: move TO amend, BY
making the amount Of the tax three per cent.
/ om Ii fayor Of that Kind Of legislation the
practicable, the circulating medium from
bunk notes to Treasury notes. The Govern
mcnt is not in position to obtain specie.
The creditors Of tho Government art to be
paid, and they prefer grccnbacks to bank
notes. The Treasury notes, issued upon the
faith Of the Government, and pledging the
property Of the country for their redemption,
are more safe and rciiable-and the people
know it-than any bank notes issued by any.
banks in any Of the States. Hence It's that
in most sections Of the country, Treasury
notes command . premium over bank notes.
l am in favor Of that kind Of legislation the
tendency Of which will be to introduce Treas
ury notes as the circulating medium Weare
to pay our creditors In paper money, OF TINT
which Is called money. Wecannot obtain the
gold. If re 60 into the market and dispose
Of our bonds for bank notes, aud with the
bank notes pay the public creditors, the Gov:
crnment loses not only the interest which it
whicl, it is compelled TO nay in making the
exchange. Why, sir, shall the Government,
when our creditors prefer our notes to bank
notes, issue bonds aud sell them at dis
connt, md receive in payment paper money
which is not as good as the paper VIC our
selves issues
Why should not the Government save the
interest which it PAYS upon these bonds, aud
save the diecounts Why should it not direct
II, as fur as possible, issue Its own promises
to pay and give them to its creditors, when
they arc much preferred By the creditors to
this bank papers
For these reasons I am in fayor Of the
amendment, the tendency Of which may be to
rcdnce the amount Of bank circulation of the
country, and substitute for 1t Treasury Notes,
enough Of which apprehend the Govern
ment will be compelled to issue to I'LL up the
vacuum made by the retirement Of bank
notes.
It is said By the gentleman from Vermont
{Mr: Morrill) that the great advantage Of the
banking institutions ot the country consists
In this, TINT when the commodities of the
country-and the instances the grain Of the
country expand the circulation or withhold
move our crops 70 market. iii. Chairman,
that is Just what I complain Of, that the
great resources Of the country, the
Eroducts Of the country; Eat and 4
pend upon the will Of tie banks and the
| mone,-lendcrs, to render or withhold Eacili-
| ties. That power should not press down upon
| tie energies Of the people, upon the produce
Of the country. am opposed to the banking
| system because 1t docs just what the gentle
man Gays it is intended to do, and whit ey-
cry man in the West knows ii has done for
| the last ten years, made us tributary to the
banks, when we would move to the markets
| the immense productions Of the West. The
gentleman says that it is necessary. 1want to
ask this committee why this currency, Which,
| as they are called, will not take the place
Of this currency Of the banks and move to the
| market the products Of the countrys That
currency cannot be controlled and limited or
expanded at the will Of the bankers. That is
| Why uul In favor oft.
| for I sec the Chairman's hammer already
raiscd, that in the West VIC have never had Sc
| good currency Us we have got to-day, and
that is the Government currency.
Here the hammer fel.
On the same question Of taxing the ciscula
tion Of the banks, Mr. Loyejoy said:
Mr. Loyeloy-Irenew the amendment whtcl
was Withdrawn BY the gentleman from Yer
mont. am not an anti bunk man that know
Of ! am simply opposed to the circulation O.
these banks. There is legitimate bank bust
ness, rs understand it, without circulation
or without the issue of notes. The gentleman
from New York says that the Bank Of Com
me1ce has So, 9,000, COO Of capital and no issue
do not want to toueh such bank as that
bank that simply stands rs n medium be
tween the boFrowcrand1e lender, to negotiate TIL
notes Of the person who wants to borrow, or t.
enable the borrower and lender to be brough
together. Il 1t receives deposits in none.
and Keeps them safely, and rcccives some
thing for it, have no objection to that kins
Of banking. What I do object to is this-ant
| here is the simple question, Us understand
!; it, for the country--thcre Is to be from fou
: to six hundred million dollars Of currency Sc
aHnnt in fhfE rA3Irftv o[1 in1nhfa1nnaS hR1r
ing no interest and irrcdeeu1ablc. If 1t woul
not be profane, would quote pun whicl
was made here tie other dry. that none G
! these bank notes know that their redeeme
liyeth. ILaughter.] Here il s4oo, ,0oo, 900 Q
f country for circulation, bearing no Interest
Now, if the banks are to have that circulation
| if they are to have 5000, coo 900 of circulatio
. nt six per cent. interest, SIG, ,oo0, GOO goes
$ thu benefit Of these corporations but if tn
4 lates It without interest, then s36 ooo, %
f goes for the benefit Of the Government, Tha
il ! is the simple question in Issue, and that
l the point, the gist Of this whole matter.
G is, who shalt have the benefit Of tli
s6e 95 the prsss9 esf t. a at hank
c probably never to be redeemed, while, upo
3 the part Of the Government, we believe fls
l. it will at some time be redeemed. Shall th
: $50. Goo eco Of interest, or in the use OF Gu
= rency without interest, accruc to the bencf
c Of corporations, associations, or individual
It ernment? That, I repeat, is the questio
which is tho gist Of this whole argument
think the gentleman from New York, no
h withstaIding tho remarks he has made, whc
6 he comes to consider this question 1naturel,
: rising above the local and partisan interest
: which may bo supposed to influence hin
a looking atthis question III thc1igLt Of patrio
c ism, will say that the Government, that Il
e people MS whole, who 3rc bearing the bn
;: dens Of this war, ought to have the benefit
Il this $50, ,oo0, ,oo0, and not these local corpor
: tinns or associations.
notes, I do not want to tax that bank. sil,
0 ply want to tax, and tax out Of sight and e.
e istence, those corporations that live simply I
:. the issue Of irredcenlable paper. Aud instea
), Of such course being an injury to the peopl
l. 1 bcleTe that II it were engrLted as perm
ncnt policy Of the Government, one Of tt
|. greatest blessings the Government ever CO.
u fcrrcd On the people, Wonld result from Il
t taxing OF these hauk notes out Of cxistencc.
l. believe that We have the constitutional pow
G to 1eglslatc these corporntions that Issue bill
Is of credit out Of existence and If we had rot
It introduced, and thnt We should claim what
l. believe the Constitution intended We shou
8 claim, the exclusive right of regulating Il
Il currency and issuing bills Of crcdit. Now, 81
K | bcliesc that this banking system whie
g is continually thrust before us here, is il
+ herently and Of necessity wrong 1t
If based upon this idea, that if man h:
T. $4,000 TO 1oan,. lie shall have Il
7. privilege of loanip $500, ,ooo; and these han
d bills, instead Of being symbols of somethiu
i that is behind them sufficient to redeem then
e instead Of being one dollar, or five dollars,
II ten dollars, as they go all over the count,
d purportiug to be, hare nothing behind tile
e to redeem them. The gentleman from Nc
E York Dir. Spanldingl says that there d
Q about S57, ,000, Goo in the banks throughout tt
Il country, and yet he says there s300, ,J00, 900
:, circulation. Now, would like to know ho
d $Si, Goo. .0o0 can redeem ss00, 600, coo. Tt
T. its circulation, in other words to pay i
u notes. then the banking business is uuprofit
d ble. The very idea is, that they shall pscte;
g to be something which they are not, and q
t about with falsehood OIL their faces, and prc
l. ty pictures, and the signatures of the pre-:
= dent and the cashier, all Of them lying, the
T being no gold or silver dollars bchind then
e The gentleman from Kentucky [sIr. WicklitI
: 1Els referred to the banking system Of III
Q war On the banks, because we have bet
b burnt How burnt: We took thc'very id.
j. OF the banking system Of New York, which
e said to be the most perfect In the world; u
G had State stocks pledged for the redemptio
! of the bills; and then when the STAKEHOLDER
4 rebellion broke cut they all vanished into til
air. That is why our banks fell. But tles
matters arc al Irrelevant, and their introau
0 tlon here shows that those who are oppose
to this amendment are conscious Of the
5 weakness before the House and before IL
:, country. trust, sir, there is maSnauimit
: enough in the committee to give us yoi
e upon this amendment in the House BY yes